KPIs
A KPI is a number that helps you make a decision. Without it, you spend blindly. But too many numbers will also lose you: dashboards show dozens of them, and they don't all have the same value. This category explains the main metrics: ROAS, CPA, CTR, conversion rate, Break Even CPA. For each one, you'll find the formula, a step-by-step calculation and how to interpret it. Above all, remember this reading order. First, the real cost per delivered order. Next, your break-even point. Only then the video and click metrics, which help you find the source of a problem, not set a goal. A nice click-through rate doesn't pay your bills. Get into the habit of recalculating your numbers with your real sales, especially with cash on delivery, because the numbers shown by platforms are still estimates.
CPA (cost per acquisition) is what you pay in ads to get a sale or another action you chose. The formula is ad spend ÷ number of sales. $600 for 30 sales gives a CPA of $20. It is the first number to look at when you decide. With cash on delivery, count only sales that were delivered and paid for.
KPIA KPI (key performance indicator) is a number you track to know if you are moving toward your goal. It is tied to your business: sales, cost per sale, quote requests. Likes and views are not KPIs as long as they don't lead to a sale.
ROASROAS (return on ad spend) measures how much your advertising brings you in sales for each dollar you spend. A ROAS of 4 means that $1 of ads generated $4 of sales. Be careful: these are sales, not profit. A high ROAS can still hide a loss, because you still have to pay for the product and delivery.