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What do you call CPA divided by Conv/Value?

     
6:51 pm on Jan 20, 2017 (gmt 0)

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I wanted a number that would show how the account is doing overall when I have a lot of very different CPA goals. I have items that are good at a $15 CPA and some that are better at $5. Also my average cart size is important. A $5 item can actually afford a $10 CPA if the cart size ended up being $80.

I just divide CPA by Conv/Value and get a percentage. This shows what percentage of the conv/value I spent to get it.

If I spend $10 to make $80 it is 12.5%.
12:40 am on Jan 21, 2017 (gmt 0)

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Where you wrote Conv/Value, I think you meant Value/Conv, aka AOV.
You did it by eliminating conversions...
$100 spend / 10 conversions = $10 CPA
$800 revenue / 10 conversions = $80 AOV
You spend $10 to get an order, and the order is worth $80.
$100 spend / 10 conversions / $800 revenue / 10 conversions = $100 spend / $800 revenue = 1/8 = 12.5%.
You're calculating 1/ROAS. :-)
ROAS = Return On Ad Spend = Revenue / Spend = $800 / $100 = $80 / $10 = 8.0x ROAS.
Some people call your 1/ROAS discovery Marketing Load, others call it Spend Efficiency Ratio (and the shortened nickname Efficiency Ratio).
Some call it Cost of Sales Ratio, and it's shortened nickname Cost of Sales (COS).

How'd I do?
Did I pass the test?
12:09 am on Jan 22, 2017 (gmt 0)

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Thanks so much. This sent me in several directions in my searches to find out more.

Cost of sales from what I have read ignores marketing costs so would not be it.

I can't find anything on discovery Marketing Load.

Cost Revenue Ratio or Efficiency Ratio seems to be what it is.

Another way to put it is CRR = Cost/Revenue which is the same thing as 1/ROAS or "Cost/Conv"/"Value/Conv" or CPA/AOV

I wish I had a marketing or finance degree or whatever teaches this.

I'm going to start calling it CRR. I like the sound of that.