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Practice reading a metric as “a thing per unit,” such as revenue per customer, clicks per impression, or cost per acquisition. You’ll learn why the denominator often decides what action a metric can support.
Use what you learned in the previous lesson to solve real-world problems.
Separate campaigns, channels, and touchpoints so you know what a marketer can actually change. You’ll trace how a budget move, creative change, or channel shift affects different parts of the plan.
Check what you understood with a short quiz.
Distinguish an audience, a target segment, and the people actually reached by marketing. You’ll reason through why a metric from one group may not justify a decision about another group.
Use impressions, reach, frequency, and CPM to describe how much attention a media plan bought. You’ll connect these metrics to awareness and delivery decisions without treating them as proof of sales impact.
Use clicks, click-through rate, and cost per click to judge whether an ad is attracting traffic. You’ll compare what these metrics can diagnose about message, placement, and intent before anyone buys.
Define a conversion as a specific action within a specific window, such as a signup, purchase, or qualified lead. You’ll connect conversion rate to decisions about landing pages, offers, and audience quality.
Use CPA and CAC to compare how much it costs to create an outcome or acquire a customer. You’ll learn when these metrics support scaling a campaign and when they hide low-value customers.
Work with orders, average order value, revenue per customer, and ROAS as revenue-facing metrics. You’ll connect each one to decisions about pricing, basket growth, and budget efficiency.
Compare revenue with gross margin and contribution margin after variable costs. You’ll see why a campaign with high revenue can still be a poor decision if discounts, fulfillment, or media costs eat the profit.
Use repeat purchase rate, retention rate, and churn to describe whether customers keep coming back. You’ll connect these metrics to decisions about onboarding, lifecycle messaging, subscriptions, and win-back campaigns.
Combine margin, retention, and expected future purchases into customer lifetime value. You’ll use CLV to reason about how much a business can afford to spend to acquire or keep a customer.
Separate observed lift from true incrementality by asking what would have happened without the marketing. You’ll connect incremental conversions, revenue, or margin to budget decisions that require causal impact.
Compare attribution credit with incrementality so you do not confuse tracking with causation. You’ll reason through why last-click, first-click, and multi-touch attribution can guide reporting but may not prove a channel created new demand.
Match common metrics to the decision they can actually support: delivery, engagement, conversion, profitability, retention, or causal impact. You’ll practice rejecting metrics that sound impressive but do not answer the business question being asked.
Review this chapter with practice based on your mistakes.