Organizations strive to minimize the cost to acquire a customer. This pyramid shows the key metrics that impact CAC, their formulas and the chain of events that builds value and efficacy in digital marketing.

1. Digital Marketing
Metrics that Matter

2. {value }
{efficacy }
{spend }
REVENUE METRICS
When marketing ROI increases,
marketing’s portion of CAC (MCAC)
is reduced—improving marketing efficacy
and creating more revenue
from less investment.
POST-CLICK METRICS
When CVR increases,
CPL decreases and
ROI increases.
PRE-CLICK METRICS
When CPC decreases and
CTR increases, you get
more prospects
in your funnel.
Clicks / Impressions * 100
Total Cost / Number of Leads
CPC
Cost Per Click
CPL
Cost Per Lead
Total Period Cost / Customers Acquired in Period
CAC
Cost to Acquire a Customer
CTR
Click Through Rate
( Gain - Cost ) / Cost * 100 ROI
Return on Investment
Converted Visitors / Total Visitors * 100 CVR
Conversion Rate
Digital Marketing
Metrics Pyramid

3. © i-on interactive, inc. All rights reserved • www.ioninteractive.com
The Pyramid
Shows the Relationship
Between traditionally ‘low-level’ metrics
and business-changing marketing metrics.

4. {efficacy }
REVENUE METRICS
When marketing ROI increases,
marketing’s portion of CAC (MCAC)
is reduced—improving marketing efficacy
and creating more revenue
from less investment.
Total Period Cost / Customers Acquired in Period
CAC
Cost to Acquire a Customer
Cost ) / Cost * 100 ROI

5. © i-on interactive, inc. All rights reserved • www.ioninteractive.com
Revenue Metrics
CAC becomes a strategic indicator when used in ratios to
judge the scalability of a business.
Lower CAC is better. Way better.
CAC
Cost to Acquire a Customer

6. © i-on interactive, inc. All rights reserved • www.ioninteractive.com
Holy Grail 101:
Use less cents to
make more bucks.

7. {value }
{efficacy }
REVENUE METRICS
When marketing ROI increases,
marketing’s portion of CAC (MCAC)
is reduced—improving marketing efficacy
and creating more revenue
from less investment.
Cost to Acquire a Customer
( Gain - Cost ) / Cost * 100 ROI
Return on Investment

8. © i-on interactive, inc. All rights reserved • www.ioninteractive.com
ROI is just beneath CAC
If you can increase marketing return on investment by
getting more business out of equal or lesser spend, you
will reduce CAC.
Higher ROI is better.
ROI
Return on Investment

9. © i-on interactive, inc. All rights reserved • www.ioninteractive.com
Post-Click Metrics
Drive Value.

10. © i-on interactive, inc. All rights reserved • www.ioninteractive.com
Post-Click Metrics
Drive the R in ROI.
ROI
Return on Investment

11. {value }
POST-CLICK METRICS
When CVR increases,
CPL decreases and
ROI increases.
Total Cost / Number of LeadsCPL
Cost Per Lead
( Gain - Cost ) / Cost * 100 ROI
Return on Investment
Converted Visitors / Total Visitors * 100 CVR
Conversion Rate

12. © i-on interactive, inc. All rights reserved • www.ioninteractive.com
CVR feeds ROI
CVR
Conversion Rate
If you can increase your conversion rate—the percentage
of people who take marketing’s desired action—you will
increase your marketing return on investment.
Higher CVR is directly related to higher ROI.

13. {value }
POST-CLICK METRICS
When CVR increases,
CPL decreases and
ROI increases.
Total Cost / Number of LeadsCPL
Cost Per Lead
( Gain - Cost ) / Cost * 100 ROI
Return on Investment
Converted Visitors / Total Visitors * 100 CVR
Conversion Rate

14. © i-on interactive, inc. All rights reserved • www.ioninteractive.com
CPL contributes value if…
you can reduce CPL by increasing CVR—improving
conversion quality while reducing spend.
Lower CPL is better—unless quality suffers.
CPL
Cost Per Lead

15. © i-on interactive, inc. All rights reserved • www.ioninteractive.com
CPL naturally goes down
when—all things being equal—conversion rate goes up.
Lower CPL is the result of higher CVR.
CPL
Cost Per Lead

16. © i-on interactive, inc. All rights reserved • www.ioninteractive.com
{spend }
PRE-CLICK METRICS
When CPC decreases and
CTR increases, you get
more prospects
in your funnel.
Clicks / Impressions * 100CPC
Cost Per Click
CTR
Click Through Rate
Spend-focused marketing
delivers spend-focused results.

17. © i-on interactive, inc. All rights reserved • www.ioninteractive.com
CPC & CTR improve
when—all things being equal—
the post-click experience is amazing.
The post-click experience drives value—
in ROI as well as spend.
CTR
Click Through Rate
CPC
Cost Per Click

18. {value }
POST-CLICK METRICS
When CVR increases,
CPL decreases and
ROI increases.
Total Cost / Number of LeadsCPL
Cost Per Lead
( Gain - Cost ) / Cost * 100 ROI
Return on Investment
Converted Visitors / Total Visitors * 100 CVR
Conversion Rate

19. © i-on interactive, inc. All rights reserved • www.ioninteractive.com
Post-Click
Focused
Marketing
Drives
ROI-Focused
Results.

20. © i-on interactive, inc. All rights reserved • www.ioninteractive.com
What CMO
doesn’t want more
revenue from less
investment?

21. © i-on interactive, inc. All rights reserved • www.ioninteractive.com
More
returnfrom lessinvestment.

22. {value }
{efficacy }
{spend }
REVENUE METRICS
When marketing ROI increases,
marketing’s portion of CAC (MCAC)
is reduced—improving marketing efficacy
and creating more revenue
from less investment.
POST-CLICK METRICS
When CVR increases,
CPL decreases and
ROI increases.
PRE-CLICK METRICS
When CPC decreases and
CTR increases, you get
more prospects
in your funnel.
meet.ioninteractive.com/CAC
Clicks / Impressions * 100
Total Cost / Number of Leads
CPC
Cost Per Click
CPL
Cost Per Lead
Total Period Cost / Customers Acquired in PeriodCAC
Cost to Acquire a Customer
CTR
Click Through Rate
( Gain - Cost ) / Cost * 100 ROI
Return on Investment
Converted Visitors / Total Visitors * 100 CVR
Conversion Rate
Digital Marketing Metrics PyramidOrganizations strive to minimize the cost to acquire a customer.This pyramid shows the key metrics that impact CAC,
their formulas and the chain of events that builds value and efficacy in digital marketing.