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Write the equations used to measure each of the following

metrics:
a. click-through rate
b. conversion rate
c. cost per order
d. margin of sales
e. churn rate

1 Answer

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Final answer:

The equations used to measure click-through rate, conversion rate, cost per order, margin of sales, and churn rate.

Step-by-step explanation:

a. Click-through Rate Equation:

The click-through rate (CTR) is calculated by dividing the number of clicks on an advertisement or link by the number of impressions it receives. The equation for CTR is:

CTR = (Number of Clicks / Number of Impressions) * 100%

b. Conversion Rate Equation:

The conversion rate measures the percentage of website visitors who complete a desired action, such as making a purchase. The equation for conversion rate is:

Conversion Rate = (Number of Conversions / Number of Visitors) * 100%

c. Cost per Order Equation:

The cost per order (CPO) is calculated by dividing the total cost of advertising campaigns by the number of orders received. The equation for CPO is:

CPO = Total Advertising Cost / Number of Orders

d. Margin of Sales Equation:

The margin of sales is the difference between the selling price and the cost price of a product. The equation for margin of sales is:

Margin of Sales = Selling Price - Cost Price

e. Churn Rate Equation:

The churn rate measures the rate at which customers stop using a product or service. The equation for churn rate is:

Churn Rate = (Number of Customers Lost / Total Number of Customers) * 100%

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