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Measuring Success: CPA KPIs
To get the most of your CPA marketing program, its important to set forth clear KPIs and measure their performance. By tracking and measuring key metrics, you can determine your CPA program’s level of success.
Measuring Performance Marketing Results
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Key Performance Indicators (KPIs) to Consider:
Conversion Rate (CR)
The rate at which sales are generated or leads are acquired after a click on an advertisement. The CR helps show the overall effectiveness of your CPA promotional methods as well as the quality of the user experience.
Reversal Rate
Also known as a chargeback rate, this is your gross sales vs. net sales number. If there’s a high reversed sales rate, it could indicate that your brand or service is not being represented correctly to your target audience.
Average Order Value/Average Order Size (AOV/AOS)
The average order value can be used to help measure the average revenue per order. It is also an important metric for comparing your CPA marketing to your other marketing methods.
Return on Investment (ROI)/Return on Ad Spend (ROAS)
These calculations assess the overall effectiveness of your CPA marketing campaigns. They compare how much you spend to how much revenue you generate from that spend.
Incremental Sales
In terms of CPA marketing, incremental sales are conversions (orders, installs, subscriptions, etc.) that would have not been achieved if the specific marketing or promotional activity had not taken place.