Traffic, also known as “Leads,” whether originating from a website or phone calls, may appear to have a relatively low cost per lead. However, when considering the wasted time and effort invested in acquiring negative responses, the actual cost becomes almost incalculable.
In order to truly grasp the value of a marketing program, it is crucial to take into account two important metrics: CPS (Cost per Sale) and ROI (Return on Investment).
CPS measures the average cost required to generate a single sale or conversion, providing insights into the efficiency of the marketing efforts. On the other hand, ROI evaluates the profitability of the investment relative to the returns it generates.
One significant factor that impacts both CPS and ROI is the Conversion Rate of your company. Successful businesses recognize that Conversion Rate Optimization (CRO) plays a crucial role in improving both CPS and ROI. Through CRO, we have found that enhancing the conversion rate allows for a reduction in the expense per sale and an improvement in ROI by generating more conversions and revenue from the same investment. CRO optimizes marketing campaigns, enhances the user experience, builds customer trust, and maximizes conversion opportunities, all leading to improved CPS and ROI.