Cost of Customer Acquisition (COA) vs. Post-Click: Which Is the True Measure of Success?

Marketing professionals love to show off strong post-click results because it means they are successfully turning advertising into sales. They have lured consumers into their carefully designed landing pages with persuasive, well-placed messaging that generates clicks. Then, that landing page offers just the right combination of information and encouragement to move customers to the finish line.

However, there is a problem with measuring results by post-click data alone. Yes, the advertising was effective, and the post-click strategy worked, but did campaign-related expenses wipe out profits? With post-click data alone, it’s impossible to know. The critical metric is Cost of Customer Acquisition (COA), which offers insight into the true return on investment (ROI).

What Post-Click Data Can Do

In the excitement of collecting clicks, it’s easy to overlook the fact that clicks do not equal revenue. What happens after the click, or the post-click period, ultimately determines the success of a campaign.

Post-click data can offer insight into whether and how consumers buy once they get to the landing page. Two examples of key metrics that provide helpful information for marketers include:

• Bounce Rate – Post-click site visitors who left the landing page without making a purchase
• Conversion Rate – Percentage of site visitors who answer your call to action

These metrics indicate the quality of the customer experience once they reach your page, but these metrics don’t show whether your campaign is delivering a positive return on investment.

What Post-Click Data Can’t Do — and Why You Need COA

One of the biggest issues with post-click data is that it isn’t entirely accurate — especially if you want to compare social media advertising data to Google Analytics results. Each one measures ad interactions in different ways, so interpreting your results is approximate at best.

Adding to the complexity, Apple’s release of iOS 14.5 has completely changed whether and how advertisers can find their target consumers. The updated software requires mobile device users to actively grant apps permission to collect and share their data, and most have not opted-in.

Prior to iOS 14.5, approximately 70 percent of iOS users allowed their data to be collected and shared. Post-iOS 14.5, that figure is closer to 11 percent. As a result, businesses must invest more in advertising to connect with their target audience — an expense that doesn’t show up in post-click results. But it does show up in COA.

The bottom line is that Cost of Customer Acquisition is the only accurate method of measuring return on investment.

The True Measure of Successful Marketing

Bringing customers in through irresistible marketing campaigns is only half of the battle. Yes, post-click results are important, but the business has to profit from resulting purchases to generate a return on the marketing-related investment.

In other words, return on investment is the true measure of successful marketing. That requires balancing the cost of acquiring customers with the profitability of their subsequent purchases.

Major has the experience you need to apply the most effective methods of measuring your results. Better still, these experts can help you scale your online marketing flawlessly. Contact Major today for more information.