Decide what counts as acquired

An enquiry, an order, an activated account and a retained customer are different outcomes. Pick the definition that fits the decision and keep other stages visible. A campaign can look inexpensive per lead while being expensive per activated customer if onboarding has substantial friction.

Match costs to the cohort

Specify whether the calculation includes media, creative, sales effort, commissions and tools. Align the cost period with the customers it generated as closely as practical. Long sales cycles can make a single calendar-month ratio misleading when spending and customer conversion occur in different months.

Compare like with like

Break out channels with different cost boundaries before ranking them. A referral channel that excludes commission cannot fairly be compared with a paid channel that includes all spending. Track the definition alongside the number so later teams do not mistake a narrow media metric for total acquisition cost. Label fully loaded acquisition cost separately from a narrower media-only figure. Both may help different teams, but presenting them under the same name can make one channel appear more efficient simply because its staff and creative costs sit elsewhere.

Imagine this

Illustrative operating example

A hypothetical $12,000 campaign produces 300 enquiries, 60 purchases and 40 activations. Cost per enquiry is $40, per purchase $200 and per activation $300. All three are valid ratios, but they answer different operating questions.

Make it practical.

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