Marketing metrics glossary

What each metric measures and how it is calculated, with a worked example on each term page.

• AOV Average order value Revenue divided by the number of orders over the same period.
• CAC Customer acquisition cost Total sales and marketing cost divided by the number of new customers it won.
• CPA Cost per acquisition Ad spend divided by the number of conversions it produced on a campaign or channel.
• CPM Cost per thousand impressions What you pay for one thousand ad impressions.
• CTR Click-through rate Clicks divided by impressions: the share of people who saw an ad and clicked it.
• CVR Conversion rate Conversions divided by clicks or sessions: the share of visitors who took the action you wanted.
• LTV Customer lifetime value The gross profit you expect from a customer over the whole relationship.
• MER Marketing efficiency ratio Total revenue divided by total marketing spend, with no attribution model involved.

Looking for typical values rather than definitions? See the metric benchmarks.