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Cost per order

This step introduces learners to the cost per order formula and how to use it.
An example of a cost per order formula.

If the total cost of a campaign was £15,000, and it generated 20,000 orders, your cost per order is 75p.

The cost per order is a simple equation that helps you understand how much it costs you to get an order, and tells you how many pounds need to be spent on advertising to generate a sale.

It is a really useful metric for companies with very tight budgets as it keeps a sharp focus on money being spent and its direct return.

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Introduction to Marketing: Fundamentals of Marketing

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