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In the fast-paced and evolving realm of marketing, encompassing both digital and traditional platforms, it is essential to have a comprehensive understanding of the performance of your campaigns. This involves analyzing various metrics and key performance indicators (KPIs) to gain valuable insights into the effectiveness of your marketing efforts. By delving into a diverse range of 100 essential marketing terms, you can uncover nuanced details about the impact of your strategies and use this data to inform and guide your decision-making processes towards greater success.
Read: Understanding DAU, WAU, MAU
Understanding the Marketing Metrics
Here’s an in-depth look at an extensive list of 100 marketing metrics, complete with their abbreviations, full names, detailed explanations, and example calculations.
| # | Abbreviation | Full Name | Explanation | Example Calculation |
|---|---|---|---|---|
| 1 | ROI | Return on Investment | Measures the profitability of a marketing campaign. | ROI = (Revenue – Cost) / Cost. Example: (5000 – 2000) / 2000 = 1.5 or 150% ROI |
| 2 | CPC | Cost Per Click | The amount spent for each click on an advertisement. | CPC = Total Cost / Number of Clicks. Example: ₹200 / 50 clicks = ₹4 per click |
| 3 | CPM | Cost Per Thousand Impressions | The cost of 1,000 ad impressions. | CPM = (Total Cost / Impressions) x 1000. Example: (₹200 / 50,000) x 1000 = ₹4 |
| 4 | CPA | Cost Per Acquisition | The cost incurred for acquiring a customer. | CPA = Total Cost / Number of Acquisitions. Example: ₹200 / 10 acquisitions = ₹20 per acquisition |
| 5 | CPL | Cost Per Lead | The cost incurred to generate a lead. | CPL = Total Cost / Number of Leads. Example: ₹500 / 50 leads = ₹10 per lead |
| 6 | CTR | Click-Through Rate | The percentage of people who click on an ad after seeing it. | CTR = (Clicks / Impressions) x 100. Example: (50 clicks / 5000 impressions) x 100 = 1% CTR |
| 7 | CVR | Conversion Rate | The percentage of users who complete a desired action after clicking an ad. | CVR = (Conversions / Clicks) x 100. Example: (25 conversions / 200 clicks) x 100 = 12.5% CVR |
| 8 | LTV | Lifetime Value | The total revenue expected from a customer over their lifetime. | Example: If a customer spends ₹100 per year and remains a customer for 5 years, LTV = ₹100 x 5 = ₹500 |
| 9 | AOV | Average Order Value | The average amount spent each time a customer places an order. | AOV = Total Revenue / Number of Orders. Example: ₹5000 / 100 orders = ₹50 per order |
| 10 | NPS | Net Promoter Score | Measures customer loyalty and satisfaction. | NPS = % Promoters – % Detractors. Example: 60% Promoters – 20% Detractors = 40 NPS |
| 11 | CAC | Customer Acquisition Cost | The cost associated with acquiring a new customer. | CAC = Total Marketing and Sales Cost / Number of New Customers. Example: ₹2000 / 50 new customers = ₹40 CAC |
| 12 | CLV | Customer Lifetime Value | The total value a customer is expected to bring during their lifetime. | Example: If a customer spends ₹500 per year and remains a customer for 5 years, CLV = ₹500 x 5 = ₹2500 |
| 13 | CR | Churn Rate | The percentage of customers who stop using a service during a given period. | CR = (Customers Lost / Total Customers) x 100. Example: (5 / 100) x 100 = 5% churn rate |
| 14 | CPI | Cost Per Impression | The cost incurred for each ad impression. | CPI = Total Cost / Number of Impressions. Example: ₹500 / 50,000 impressions = ₹0.01 per impression |
| 15 | VTR | View-Through Rate | The percentage of users who view a video ad and then take a desired action. | VTR = (Desired Actions / Impressions) x 100. Example: (200 actions / 10,000 impressions) x 100 = 2% VTR |
| 16 | TCO | Total Cost of Ownership | The purchase price of an asset plus the costs of operation. | Example: If a software costs ₹1000 and ₹200 annually for maintenance, TCO for 5 years = ₹1000 + (₹200 x 5) = ₹2000 |
| 17 | ROAS | Return on Ad Spend | Measures the revenue generated for every dollar spent on advertising. | ROAS = Revenue from Ads / Cost of Ads. Example: ₹5000 revenue / ₹1000 ad spend = 5 or 500% ROAS |
| 18 | SOV | Share of Voice | A brand’s advertising presence compared to competitors. | SOV = (Brand Ad Spend / Total Market Ad Spend) x 100. Example: (₹10,000 / ₹100,000) x 100 = 10% SOV |
| 19 | SEO | Search Engine Optimization | The process of optimizing online content to rank higher in search engine results. | Example: Improved SEO results in higher organic traffic, measured by increased site visits from search engines |
| 20 | SEM | Search Engine Marketing | The use of paid advertising to appear in search engine results. | Example: SEM campaigns generate traffic; effectiveness measured by CTR, conversions, and ROI |
| 21 | PPC | Pay Per Click | A model of internet marketing where advertisers pay a fee each time one of their ads is clicked. | Example: PPC campaign cost ₹2000 with 500 clicks; CPC = ₹2000 / 500 = ₹4 per click |
| 22 | KPI | Key Performance Indicator | Metrics used to evaluate the success of a marketing campaign. | Example: KPIs could be CTR, conversion rate, or ROI, depending on campaign goals |
| 23 | UV | Unique Visitors | The number of distinct individuals visiting a website within a specific period. | Example: If a site has 500 UVs in a month, it means 500 different individuals visited the site |
| 24 | PV | Page Views | The total number of pages viewed on a website. | Example: If a website’s pages are viewed 10,000 times in a month, it has 10,000 PVs |
| 25 | MAU | Monthly Active Users | The number of unique users who interact with an application within a month. | Example: An app has 50,000 MAUs if 50,000 unique users used it in the past month |
| 26 | DAU | Daily Active Users | The number of unique users who interact with an application daily. | Example: An app has 5,000 DAUs if 5,000 unique users used it today |
| 27 | ARPU | Average Revenue Per User | The average revenue generated per user. | ARPU = Total Revenue / Total Users. Example: ₹5000 revenue / 500 users = ₹10 ARPU |
| 28 | CLTV | Customer Lifetime Value | The predicted net profit attributed to the entire future relationship with a customer. | Example: If a customer spends ₹100 per year for 5 years and the profit margin is 50%, CLTV = ₹100 x 5 x 0.5 = ₹250 |
| 29 | CPL | Cost Per Lead | The cost incurred to generate a lead. | CPL = Total Cost / Number of Leads. Example: ₹1000 / 50 leads = ₹20 per lead |
| 30 | CSAT | Customer Satisfaction Score | Measures how satisfied customers are with a product/service. | Example: If 80 out of 100 respondents rate satisfaction positively, CSAT = 80% |
| 31 | CRR | Customer Retention Rate | The percentage of customers a company retains over a specific period. | CRR = ((Customers at End of Period – New Customers) / Customers at Start of Period) x 100. Example: (90/100) x 100 = 90% |
| 32 | DR | Direct Response | Advertising designed to elicit an immediate response. | Example: Direct mail campaign generates 50 responses from 1000 sent mails, DR = 50/1000 = 5% |
| 33 | EPM | Earnings Per Mille | Revenue generated per 1,000 impressions. | EPM = (Total Revenue / Impressions) x 1000. Example: (₹200 / 50,000) x 1000 = ₹4 |
| 34 | VTR | Video Completion Rate | The percentage of videos watched to the end. | VTR = (Videos Completed / Videos Started) x 100. Example: (800 / 1000) x 100 = 80% |
| 35 | ER | Engagement Rate | The level of engagement that a piece of content receives from an audience. | ER = (Total Engagements / Total Followers) x 100. Example: (500 engagements / 10,000 followers) x 100 = 5% |
| 36 | BR | Bounce Rate | The percentage of visitors who leave a website after viewing only one page. | BR = (Single Page Visits / Total Visits) x 100. Example: (300 / 1000) x 100 = 30% |
| 37 | PVR | Page View Rate | The average number of pages viewed per session. | PVR = Total Page Views / Total Sessions. Example: 5000 page views / 1000 sessions = 5 pages per session |
| 38 | LVR | Lead-to-Visit Ratio | The ratio of leads generated to total website visits. | LVR = (Number of Leads / Number of Visits) x 100. Example: (50 leads / 2000 visits) x 100 = 2.5% |
| 39 | CVL | Customer Value | The monetary worth of a customer. | Example: If a customer spends ₹1000 annually and the profit margin is 20%, CVL = ₹1000 x 0.2 = ₹200 |
| 40 | FVR | Funnel Conversion Rate | The percentage of users who move from one stage of the funnel to the next. | FVR = (Conversions at Stage n / Entries at Stage n-1) x 100. Example: (20 / 100) x 100 = 20% |
| 41 | AC | Average Conversion | The average rate at which users convert to customers. | AC = (Total Conversions / Total Visitors) x 100. Example: (50 / 2000) x 100 = 2.5% |
| 42 | OTS | Opportunities to See | The average number of times a target audience member is exposed to an advertisement. | Example: If an ad is displayed 10 times to an audience of 100, OTS = 1000 / 100 = 10 |
| 43 | PR | Penetration Rate | The percentage of a target market that has purchased a product. | PR = (Number of Customers / Target Market Size) x 100. Example: (500 / 5000) x 100 = 10% |
| 44 | RPR | Repeat Purchase Rate | The percentage of customers who make more than one purchase. | RPR = (Repeat Customers / Total Customers) x 100. Example: (50 / 200) x 100 = 25% |
| 45 | AR | Attrition Rate | The rate at which customers leave a service or stop buying products. | AR = (Number of Lost Customers / Total Customers) x 100. Example: (10 / 200) x 100 = 5% |
| 46 | CPME | Cost Per Engagement | The cost incurred for each user engagement with an ad. | CPME = Total Cost / Number of Engagements. Example: ₹200 / 50 engagements = ₹4 per engagement |
| 47 | ROMI | Return on Marketing Investment | Measures the return generated on marketing investment. | ROMI = (Revenue – Marketing Cost) / Marketing Cost. Example: (₹5000 – ₹2000) / ₹2000 = 1.5 or 150% |
| 48 | CRPM | Cost Per Response (Media) | The cost incurred for each response generated by a media campaign. | CRPM = Total Cost / Number of Responses. Example: ₹200 / 50 responses = ₹4 per response |
| 49 | VTC | View-Through Conversion | The number of post-impression conversions. | Example: If 100 users see an ad and 10 later convert without clicking, VTC = 10 |
| 50 | RPM | Revenue Per Mille | Revenue generated per 1,000 impressions. | RPM = (Total Revenue / Impressions) x 1000. Example: (₹500 / 100,000) x 1000 = ₹5 |
| 51 | EPC | Earnings Per Click | Revenue generated per click. | EPC = Total Revenue / Number of Clicks. Example: ₹500 / 1000 clicks = ₹0.50 per click |
| 52 | CPE | Cost Per Engagement | The cost incurred for each user engagement with an ad. | CPE = Total Cost / Number of Engagements. Example: ₹300 / 60 engagements = ₹5 per engagement |
| 53 | CPA | Cost Per Action | The cost incurred for each specified action (purchase, form submission, etc.). | CPA = Total Cost / Number of Actions. Example: ₹400 / 20 actions = ₹20 per action |
| 54 | CTOR | Click-to-Open Rate | The percentage of opened emails that received a click. | CTOR = (Clicks / Opens) x 100. Example: (50 clicks / 200 opens) x 100 = 25% |
| 55 | CPO | Cost Per Order | The cost incurred for each order placed. | CPO = Total Cost / Number of Orders. Example: ₹1000 / 100 orders = ₹10 per order |
| 56 | EPS | Earnings Per Share | The portion of a company’s profit allocated to each outstanding share of stock. | EPS = (Net Income – Dividends on Preferred Stock) / Average Outstanding Shares. Example: ₹1,000,000 / 100,000 shares = ₹10 |
| 57 | SOV | Share of Voice | A brand’s advertising presence compared to competitors. | SOV = (Brand Ad Spend / Total Market Ad Spend) x 100. Example: (₹5000 / ₹100,000) x 100 = 5% |
| 58 | CPL | Cost Per Lead | The cost incurred to generate a lead. | CPL = Total Cost / Number of Leads. Example: ₹600 / 30 leads = ₹20 per lead |
| 59 | EMV | Earned Media Value | The value of media coverage gained through PR efforts. | Example: If media coverage equivalent ad cost is ₹1000, EMV = ₹1000 |
| 60 | FCR | First Call Resolution | The percentage of customer service inquiries resolved on the first contact. | FCR = (Resolved on First Call / Total Inquiries) x 100. Example: (80 / 100) x 100 = 80% |
| 61 | FTR | First-Time Response Rate | The percentage of first-time inquiries that receive a response. | FTR = (First-Time Responses / Total First-Time Inquiries) x 100. Example: (70 / 100) x 100 = 70% |
| 62 | CTC | Click-to-Conversion | The percentage of clicks that result in a conversion. | CTC = (Conversions / Clicks) x 100. Example: (25 / 200) x 100 = 12.5% |
| 63 | MER | Marketing Efficiency Ratio | The ratio of revenue to marketing spend. | MER = Total Revenue / Total Marketing Spend. Example: ₹10,000 revenue / ₹2,000 spend = 5 |
| 64 | CTA | Call To Action | Encourages the audience to take a specific action. | Example: “Sign Up Now” button in an email campaign |
| 65 | OPM | Organic Page Views | The number of page views generated without paid advertising. | Example: 3000 organic page views from search engine traffic |
| 66 | ORM | Online Reputation Management | Managing and influencing a business’s online reputation. | Example: Monitoring reviews and social media mentions to improve brand perception |
| 67 | PPI | Pay Per Impression | The amount paid each time an ad is displayed. | PPI = Total Cost / Number of Impressions. Example: ₹200 / 50,000 impressions = ₹0.004 per impression |
| 68 | PS | Profitability Score | A measure of the profitability of a marketing activity. | Example: If revenue is ₹10,000 and costs are ₹7,000, PS = ₹3,000 |
| 69 | PVL | Page Visit Length | The average time spent on a web page. | Example: If total time on page is 2000 minutes for 500 visits, PVL = 2000 / 500 = 4 minutes per visit |
| 70 | RPE | Revenue Per Employee | Revenue generated per employee. | RPE = Total Revenue / Number of Employees. Example: ₹1,000,000 / 50 employees = ₹20,000 per employee |
| 71 | RSV | Revenue per Session Value | The average revenue generated per session. | RSV = Total Revenue / Total Sessions. Example: ₹5000 / 1000 sessions = ₹5 per session |
| 72 | BSR | Best Sellers Rank | A metric used by retailers to rank products based on sales performance. | Example: Product ranked #1 in its category on Amazon indicates highest sales |
| 73 | OMB | Online Media Buying | The process of purchasing advertising space online. | Example: Buying banner ads on websites for ₹5000 |
| 74 | PPC | Pay Per Call | The amount paid each time a phone call is generated by an ad. | PPC = Total Cost / Number of Calls. Example: ₹200 / 50 calls = ₹4 per call |
| 75 | RPW | Revenue per Website Visit | The average revenue generated per visit to a website. | RPW = Total Revenue / Total Visits. Example: ₹10,000 / 5000 visits = ₹2 per visit |
| 76 | SCTR | Social Click-Through Rate | The percentage of social media users who click on a link in a social media post. | SCTR = (Clicks / Impressions) x 100. Example: (50 clicks / 5000 impressions) x 100 = 1% |
| 77 | SHR | Social Share Rate | The percentage of social media users who share a post. | SHR = (Shares / Impressions) x 100. Example: (10 shares / 1000 impressions) x 100 = 1% |
| 78 | TTV | Time to Value | The time it takes for a customer to realize the value of a product/service. | Example: If it takes 3 months for a customer to see the benefits of a software, TTV = 3 months |
| 79 | UPT | Units Per Transaction | The average number of units sold per transaction. | UPT = Total Units Sold / Total Transactions. Example: 500 units / 200 transactions = 2.5 units per transaction |
| 80 | WTP | Willingness to Pay | The maximum amount a customer is willing to pay for a product/service. | Example: If customers are willing to pay up to ₹50 for a product, WTP = ₹50 |
| 81 | ZMOT | Zero Moment of Truth | The moment a consumer decides to research a product before purchase. | Example: Reading online reviews before buying a product |
| 82 | CPD | Cost Per Download | The cost incurred for each download of an app or digital content. | CPD = Total Cost / Number of Downloads. Example: ₹500 / 100 downloads = ₹5 per download |
| 83 | FTA | First Time Acquisition | The process of acquiring a new customer for the first time. | Example: Gaining 100 new customers through a marketing campaign |
| 84 | NCA | New Customer Acquisition | The process of acquiring new customers. | Example: 200 new customers acquired through a social media campaign |
| 85 | NRR | Net Revenue Retention | Measures the revenue retained from existing customers over a specific period. | NRR = (Revenue at Start + Upsells – Downgrades – Churn) / Revenue at Start x 100. Example: ((₹5000 + ₹1000 – ₹500) / ₹5000) x 100 = 110% |
| 86 | PBR | Purchase Behavior Rate | The rate at which consumers purchase a product after viewing an advertisement. | PBR = (Purchases / Ad Views) x 100. Example: (10 purchases / 1000 ad views) x 100 = 1% |
| 87 | PCR | Post-Click Revenue | The revenue generated after a user clicks on an ad. | Example: ₹2000 revenue generated from 500 ad clicks |
| 88 | QRC | Quick Response Code | A type of barcode that stores information. | Example: Scanning a QR code with a smartphone to access a website |
| 89 | TBR | Total Brand Reach | The total number of people who have been exposed to a brand. | Example: If 50,000 people have seen a brand’s ad, TBR = 50,000 |
| 90 | UGC | User-Generated Content | Content created by users about a brand or product. | Example: Customer reviews, social media posts, and testimonials |
| 91 | BTL | Below The Line | Marketing activities that focus on direct communication with target audiences. | Example: Direct mail, email marketing, and in-store promotions |
| 92 | ATL | Above The Line | Marketing activities that focus on mass media to reach a wide audience. | Example: TV, radio, and billboard advertising |
| 93 | TTL | Through The Line | Integrated marketing approach that uses both ATL and BTL strategies. | Example: A campaign that combines TV ads with social media promotions |
| 94 | LTM | Long-Term Memory | The ability of customers to retain information about a brand over time. | Example: A memorable jingle or slogan that customers remember for years |
| 95 | WOM | Word of Mouth | The passing of information about a brand/product from person to person. | Example: Positive reviews and recommendations from friends or family |
| 96 | CLM | Customer Loyalty Management | Strategies to retain customers and encourage repeat business. | Example: Loyalty programs, personalized offers, and excellent customer service |
| 97 | DMP | Data Management Platform | Example: Using a DMP to track and analyze customer behaviour across multiple channels | An integrated marketing approach that uses both ATL and BTL strategies. |
| 98 | DSP | Demand-Side Platform | Technology used to purchase digital advertising. | Example: Using a DSP to buy ad space in real-time bidding auctions |
| 99 | SSP | Supply-Side Platform | Technology used by publishers to sell digital advertising. | Example: Using an SSP to manage and sell ad inventory on a website |
| 100 | CTR | Click-Through Rate | The percentage of users who click on a link or ad after seeing it. | CTR = (Clicks / Impressions) x 100. Example: (100 clicks / 10,000 impressions) x 100 = 1% |
This comprehensive table encompasses a diverse array of metrics and terminology utilized to assess the effectiveness of digital and traditional marketing campaigns. Each term is indispensable for gaining insights into various facets of campaign performance and formulating an effective overall marketing strategy.
