< 1 : 1 - the company attracts clients at a loss and wastes money on advertising;
1:1 - advertising costs are equal to the profit it brings, that is, there is no real income from advertisements;
3:1–4:1 is the ideal ratio, which indicates a solid business model;
5:1 - the company may be growing more actively, but invests too little in marketing.
The LTV:CAC ratio is not constant, as the situation can change, for example, when a new competitor enters the market and takes away some of the customers.
CAR (Cart Abandonment Rate)
This metric speaks for itself. It shows how many people (in %) filled the "Cart" on the site, but did not decide to make an order. CAR is useful for online stores to know.
The following formula is used for calculation:
CAR = (Number of users who abandoned the cart / Number of users who added an item to the cart) * 100%.
Here are some reasons why users abandon their shopping carts:
we didn't expect the cost of the goods to be so high;
went to an online store to search for products, not to buy them;
found where to buy cheaper;
postponed placing the order until better times;
couldn't figure out the structure of the site.
How to get information about CAR
To get the data from Google Analytics, go to the Reports benin telegram data section, then Conversions - E-commerce - Buyer Behavior. The bottom of the table will show the number of seconds when visitors added products to the Cart and when they made orders. The ratio of these two indicators is CAR.
To view information about products in the "Cart" of the online platform, you need to connect e-commerce reports in Yandex Metrica. To do this, you should contact the developer of the platform. After connecting, you will be able to view a report called "Products in Cart".
If CAR increases, then perhaps competitors sell similar products at a lower price and buyers go to them. With a loyal pricing policy, it is worth thinking about the user interface: the user should quickly get to the necessary page and buy the product in a few clicks.
ROI is the return on investment in advertising. It is determined by a simple formula:
ROI = (profit – advertising investment) * 100% / advertising investment.
Return on Investment (ROI)
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