What is CPS?
CPS stands for ‘cost per sale’ and is a key metric used in e-commerce and digital marketing that enables marketers to track their return on investment (ROI) for a particular marketing campaign. It’s a powerful tool for making decisions about where to allocate budget and can help businesses to improve their sales performance.
How to calculate CPS
The simplest way to calculate cost per sale is to divide total marketing spend by the total number of sales generated from that spend. This calculation will provide a value for each sale in terms of the amount of money spent to generate it.
Example of CPS
For example, if a company spends $1,000 on a marketing campaign and generates 10 sales, the cost per sale is $100. This means that each sale cost the company $100 in marketing costs.
Benefits of using CPS
Using CPS has a number of benefits, including:
- Helps marketers to better understand the ROI of a particular marketing campaign.
- Allows marketers to make informed decisions about where to allocate budget.
- Enables businesses to track and optimize their sales performance.
Conclusion
CPS is an important metric for any digital marketer or e-commerce business. By understanding and tracking CPS, marketers can make decisions about where to allocate budget and optimize their sales performance.Relevant Links: