Analytics Cheat Sheet

CPP (cost per piece) (sent / distributed, not created)

• direct campaign expenses / # of pieces sent

CPR (cost per response)

• direct campaign expenses / # of responses

CPS/ CPT (cost per sale / transaction)

• direct campaign expenses / # of sales

Gross Profit (campaign specific)

• lost opportunity cost + direct campaign expenses = total direct campaign expenses
• offer generated revenue – total direct campaign expenses = gross profit

Bottom Line Profit (bottom line = can we pay our bills too?)

• total direct campaign expenses + prorated operating expenses (make sure it's for the total number of products sold) + wholesale expenses = true cost of campaign
• offer generated revenue + additional sales = total revenuetotal revenue – true cost of campaign = BLP

LTV (Lifetime Value)

• # of sales per year per customer x churn rate = number of average sales
• number of average sales x average sale value = Lifetime Revenue PotentialLifetime Revenue Potential + CPS = LTV of customer
• LTV of customer x # of customers that redeemed offer = LTV of campaign

ROI (Return on Investment)

• Revenue – Expenses = ROI (important to disclose which numbers you are using)