Calculating Basic “Campaign Generated” Metrics

    1. Name the campaign.
    2. Generate leads.
    3. Sell to leads.

Do calculations:

Total # of leads = ?
Total # of sales conversions = ?

Calculate conversion rate: ?
CR = total sales / total leads

Calculate Gross Lead Value: ?
LV = value of sales for campaign / total leads

Calculate net lead value: ?
NLV = (value of sales for campaign * profit %) / total leads

Calculate Lifetime Customer Value: ?
LCV – avg sale $ * avg order frequency/yr * avg # of years client will buy
>>>>> use calculator here – http://straightonsolutions.com/customervalue/

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Profitable ROI = paying less for leads than Net Lead value
– assuming that LCV is based on one time sales

If LCV is more than NLV then more can be paid for leads.