Cost Per Conversion Rate(CCR)
Cost Per Conversion Rate (CCR)
In digital marketing, the term “cost per conversion” refers to the total amount spent on an advertisement relative to its success in reaching its target. To calculate conversion costs, you need to understand them first. They are also often referred to as conversion costs or cost per conversion. However, do not confuse these terms with cost per click. Calculating conversion costs allows you to calculate the average cost per conversion for a given customer.
How Should I Calculate The Conversion Cost?
To calculate the conversion cost is a relatively straightforward process. For the calculation, you need to know the total campaign spend and the number of conversions generated by the campaign. You must understand the conversion cost formula to fully grasp other concepts like campaign budget, PPC ROI, and campaign waste.
The conversion cost mathematical formula is;
Cost per conversion = (Total campaign cost) / (Number of conversions).
Tips For Lowering The Cost Per Conversion
The truth is that a high cost per conversion rate may indicate that your ad isn’t performing well.
Fortunately, you can do a few things to lower this number. Here are 4 ideas on how to lower your customer acquisition costs;
1. Write better text.
If your ads struggle to convert your customer, it may be that your text is too poor. In this type of scenario, you must rethink your current text and create one that’s more enticing and appeals to your target audience.
2. Determine the ideal time to place your ads.
The placement and timing of your ads is crucial. You have to be able to use the best channels to connect with an audience at the most suitable time. You may not realize it, but your ads may currently be poorly placed. Your ads don’t have to run nonstop. Instead, analyze your data to determine the most effective times to run your ads and only run them during those periods. When your ads are properly placed, you will enjoy an upturn in your customer conversion rate.
3. Run A/B tests.
These tests will help you determine the efficiency of your ads and how likely they are to appeal to your target audience. This idea usually works when you have more than one ad. Next, you’ll have to choose the version of your ads that performs best after testing different iterations.
4. Pay attention to your best-performing pages.
To find out which pages convert the most, look into your analytics. Repurpose your marketing spending to ensure more money goes to advertising those pages.