All articles with "formulas" tag

Unit economics

All companies work around their business model, i.e., a set of strategies directed at achieving their organizational goals. Yet, no matter what strategies are in the act, the building blocks of any business are always the same: costs and revenues. That’s what unit economics deals with. What is unit economics? Unit economics is a method […]

Cost per impression (CPM)

Online advertising strategies need sizable expenses. CPM, combined with CPC (cost per click), CTR (click-through rate), and other metrics, is the most effective way to measure the success of lead generation efforts marketers have already made. What is CPM in marketing? Cost per impression (CPM) is one of the metrics aimed at demonstrating the effectiveness […]

Net Promoter Score (NPS)

Nowadays, customers quickly share their recommendations and reviews (especially the negative ones) on different social networks. As a result, even a single client’s bad experience can damage your new business, revenue, and ROI. This is why it’s crucial to collect customer feedback and identify headaches to make them happy. And this is where a Net […]

Click-through rate (CTR)

Online marketing is aimed at finding potential consumers with the help of digital channels. Users surf the Internet, socialize online, and focus their attention on the most interesting blogs, informational and commercial websites, as well as attractive advertisements. Click-through rate (CTR) is one of the ways to measure the success of the search engine, advertising, […]

Sales turnover

What is sales turnover? It is an accounting concept that determines how quickly a business conducts its operations. Most often, it is used to understand how much of its inventory a company sells within a defined period. For example, if a business is selling mobile phones, the turnover rate would be the total amount of […]

Conversion rate

Conversion rate is the number of conversions or actions, divided by the total number of visitors. A conversion rate can be applied to other actions too, it is not exclusively tied to sales.  Conversion refers to any action you want the consumer to take, such as clicking a call-to-action button, signing up for an email […]

Cost per click (CPC)

Pay-per-click is often connected with top-level search engines (like Google Ads or Bing Ads). With search engines, marketers regularly bid on keywords or key phrases regularly searched by their target audience.  Conversely, content platforms charge a settled price per click instead of using a bidding method. PPC promotion, also regarded as “banner” ads, are shown […]


Revenue is the total income of money from the sales of a company’s goods or services, as related to normal business operations, with gross revenue being specifically the income a company generates before any business expenses are taken out. Types of revenue There are multiple types of revenue, for example, monthly recurring revenue. The most […]


ROI, or return on investment, is a commonly used measurement of gain and loss generated on an investment relative to the amount of money invested. It is one of the profitability ratio formulas used in financial analysis for monitoring sales and profits within businesses. ROI is most often presented as a percentage. The equations are […]


MRR, or monthly recurring revenue, measures a recurring revenue expected monthly. Mostly used in SaaS and other subscription services, it averages various pricing plans and billing periods into a single number that can be tracked over time. It can help predict future revenue and allow for reporting performance even when there are numerous subscription terms. […]

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