Product metrics. Part 1 Acquisition.

 



Acquisition Metrics

1. Bounce Rate

Definition: The percentage of visitors who leave a website after viewing only one page.
Formula:
Bounce Rate = (Single Page Visits / Total Visits) × 100

Examples:

  • E-commerce: 3,000 single-page visits out of 10,000 total visits.
    Bounce Rate = (3000 / 10000) × 100 = 30%
  • Healthcare Website (Telemedicine App): Patients who land on the homepage but don’t proceed to book.
  • SaaS: Users who visit a landing page for a free trial but leave without signing up.

2. Conversion Rate

Definition: The percentage of visitors who complete a desired action (e.g., purchase, signup).
Formula:
Conversion Rate = (Conversions / Total Visitors) × 100

Examples:

  • E-commerce: 500 purchases from 5,000 visitors.
    Conversion Rate = (500 / 5000) × 100 = 10%
  • Edtech: 200 course enrollments from 2,000 visitors.
  • Insurance Website: 80 policy inquiries from 1,000 visitors.

3. Landing Page Conversion Rate

Definition: Conversion rate specific to a landing page.
Formula:
LP Conversion Rate = (Conversions from Landing Page / Landing Page Visitors) × 100

Examples:

  • Real Estate Portal: 70 form submissions from 700 visitors.
    = (70 / 700) × 100 = 10%
  • Fintech App: 50 downloads from a landing page with 1,000 visitors.
  • Online Fitness Program: 20 signups from 400 landing page visits.

4. Customer Acquisition Cost (CAC)

Definition: Average cost to acquire a new customer.
Formula:
CAC = Total Acquisition Cost / Number of New Customers

Examples:

  • SaaS: $10,000 marketing spend for 200 customers.
    = $10,000 / 200 = $50
  • Retail Clothing Brand: ₹2,00,000 spent for 1,000 new buyers → ₹200 per customer.
  • Telemedicine: ₹1,00,000 ads cost for 500 new patients → ₹200 CAC.

5. Cost Per Acquisition (CPA)

Definition: Cost per defined acquisition event (purchase, signup, lead).
Formula:
CPA = Campaign Cost / Number of Acquisitions

Examples:

  • E-commerce: ₹30,000 ad spend for 150 orders.
    CPA = ₹30,000 / 150 = ₹200
  • Online Course: ₹50,000 for 100 signups.
  • Diagnostics Lab: ₹40,000 for 80 test bookings.

6. Channel Effectiveness

Definition: Performance of different acquisition channels (social, search, email, etc.)
Measured via: CPA, Conversion Rate, ROI by channel.

Examples:

  • Healthcare: Facebook Ads = ₹250 CPA, Google Ads = ₹180 CPA → Google more effective.
  • Fashion Retail: Email campaign = 12% conversion, Instagram Ads = 5%.
  • SaaS: Affiliate marketing = ₹500 CAC, PPC = ₹400.

7. Traffic Source Distribution

Definition: Share of traffic by source (direct, organic, paid, referral).
Format:

  • Organic: 40%, Paid: 30%, Referral: 20%, Direct: 10%

Examples:

  • SaaS: 50% from Google Search, 30% from paid campaigns, 20% from referrals.
  • Healthcare Blog: Mostly organic (60%) due to SEO.
  • Marketplace: Influencer-driven referral traffic: 35%

8. Cost Per Mille (CPM)

Definition: Cost per 1,000 ad impressions.
Formula:
CPM = (Ad Spend / Impressions) × 1000

Examples:

  • E-commerce: ₹5,000 for 200,000 impressions.
    CPM = (5000 / 200000) × 1000 = ₹25
  • Real Estate Ads: ₹8,000 for 100,000 impressions → ₹80 CPM.
  • OTT Ads: ₹15,000 for 300,000 impressions → ₹50 CPM.

9. Cost Per Click (CPC)

Definition: Average cost per click in an ad campaign.
Formula:
CPC = Total Ad Spend / Number of Clicks

Examples:

  • Online Pharmacy: ₹10,000 ad budget for 2,000 clicks → ₹5 CPC.
  • SaaS Trial Campaign: $500 for 250 clicks → $2 CPC.
  • Insurance Ads: ₹12 per click from a ₹6,000 campaign (500 clicks).

10. Page Views Per Session

Definition: Average number of pages viewed per session.
Formula:
Page Views per Session = Total Page Views / Total Sessions

Examples:

  • Healthcare Info Site: 12,000 page views from 4,000 sessions → 3 pages/session.
  • Retail Site: 8,000 views from 2,000 visits.
  • Edtech: 9 pages/session due to course exploration.

11. Click-Through Rate (CTR)

Definition: Percentage of ad viewers who click.
Formula:
CTR = (Clicks / Impressions) × 100

Examples:

  • E-commerce Sale Ad: 2,000 clicks from 100,000 views.
    CTR = (2000 / 100000) × 100 = 2%
  • Job Portal: LinkedIn ad with 1.5% CTR.
  • Health Insurance Ad: 800 clicks from 50,000 views → 1.6%.



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