MEDIA EFFICIENCY TERMS

 

CPC:  Cost Per Call.  This term has 2 meanings.  When evaluating media performance, the CPC is determined by dividing the media spend by the total number of calls.  When evaluating the cost of telemarketing, the CPC is determined by calculating the number of call minutes used times the cost per minute, then dividing by the number of calls.

 

CPO:  Cost Per Order is determined by dividing media spend by the total number of orders.

 

CONVERSION RATE:  When referring to Order Conversion, this is calculated by dividing the number of orders into the number of calls.  When referring to upsells, this is calculated by dividing the number of a given upsell sold into the number of orders.

 

MER:  Media Efficiency Ratio.  This is calculated by dividing Revenue into Media Spend.

 

RPO:  Revenue Per Order.  Also known as Average Order Value.  Determined by dividing the total revenue by the total number of orders.