Cost per order
Also known as: cost per order(cpo)
The CPO or cost per order is the average amount spent on marketing per order. This KPI can be obtained by dividing the total spending on marketing by the number of orders. The cost per order can be used to weigh whether the cost of marketing outweighs the value of the orders.
Companies often set a maximum CPO based on a percentage of an average order, based on past sales figures. Based on this template, budget and fulfillment can be determined, up to the maximum cost for clicks or views in an ad campaign.
