On this page, we will define the CPO metric and will show you how to use the Stripo cost per order calculator. Of course, the manual will be accompanied with a CPO calculation example to show you how to use our calculator properly.
What is CPO?
CPO means Cost Per Order. As the name says, this metric reflects the accurate amount of expenses paid to convince a customer to place an order on your website. In other words, it’s the cost of the customer's target action: a purchase. Knowing this index, marketers can easily estimate whether their activities are profitable or not.
The CPO marketing value
CPO is not meant to measure the effectiveness of promo campaigns. It rather helps to measure the performance of an entire marketing channel.
CPO typically fits best the following sectors:
- eCommerce, i.e. sales in online stores;
- banking services, financial, and insurance companies;
- real estate agencies, building companies;
- delivery services.
This metric also applies to the activities of webmasters with trusted sites or social media groups.
CPO is an excellent metric that shows if your value offer is effective enough. We have certain facts of sale and income, so our results are really accurate.
How to calculate Cost Per Order?
To find the result, we need to use the following cost per order formula: Total cost promotion divided by the number of completed orders/purchases.
An example: a SaaS product invested $23 000 in a promo campaign. As a result, 50 orders were made. Let’s calculate the cost of one order:
$23 000/50 = $460
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