CPO

This metric helps determine the cost incurred for each purchase made by customers. For example, if you invest $100,000 and generate one sale, the CPO will be $100,000. Similarly, if you invest $100,000 and get five sales, the CPO will be $20,000 per order.

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LTV

LTV, or Lifetime Value, refers to the total amount a customer spends throughout their relationship with your brand. This figure is calculated as an average across all customers, rather than individually.

For example, if you have three customers: one spends $10,000, another $20,000, and a third $30,000, the LTV will be the average of these amounts, representing the typical value of a customer’s lifetime spending with your brand.

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AOV

AOV stands for Average Order Value and is a critical metric when managing an e-commerce business. This value is calculated by tracking all customers’ purchases and provides insight into the typical amount customers spend on your brand.

To calculate AOV, you’ll need to consider a specific time frame, the total revenue generated by your e-commerce during that time, and the number of orders.

MQL

This is one of the three leads you can encounter when marketing your brand. MQL stands for Marketing Qualified Lead.

This term refers to the first level of lead qualification carried out by the marketing team.

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SQL

SQL, or Sales Qualified Lead, is also a type of lead. Although it can be confused with MQL, the key difference is that SQL represents the second level of lead qualification, performed by the sales team to close the deal.

The big question is: how do you acquire an SQL? The most important factor is having a well-defined audience and ensuring your brand reaches them effectively.

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We know there are many more questions about advertising, and you will likely answer them as you delve deeper into digital marketing and advertising.Let us know if this information is useful to you so we can create more content like this. Today’s journey with Tres Pi ends here.