Metric Glossary

Planned Investment

The planned investment of a campaign or goal is the total budget of that campaign or goal over time for goals and aggregate campaigns (campaigns that derive their budgets from their child campaigns and expense groups). This total budget is the sum of all child campaigns and expense groups within that aggregate campaign or goal.

For instance, in the following screenshot, the Content Syndication 1 campaign's Total Budget of $121,000 represents the Planned Investment for that specific campaign.

Current Investment

The current investment represents the actual expense total for a specified campaign or goal. This sum encompasses actual expense totals from child campaigns and expense groups within a parent campaign or goal. 

For instance, in the following screenshot, the Content Syndication 1 campaign's Actual Spend of $30,000 signifies the Current Investment for that particular campaign.

RPO

Revenue Per Outcome (RPO) represents the average revenue generated by a single metric instance at the bottom of your metric funnel. For instance, if the average deal brings $100,000 in revenue, then the RPO for that deal is $100,000. The RPO for each metric is calculated by considering conversion rates across the funnel.

For example, using this formula to calculate the RPO of Leads, the RPO for a lead would be ($100,000 * 0.27 * 0.04 * 0.78 = $842.40).

Revenue to Profit %

Revenue to Profit % represents the percentage of revenue that translates into actual profit. It serves to exclude overhead costs. For example, with a Revenue Profit % of 80% and $1000 in revenue, the profit would be $1000 * 80% = $800.

Target

The target indicates the expected achievement level of a metric by a specific date. It can be set at different levels, such as goals, campaigns, and child campaigns. Targets are not cumulative across the hierarchy.

Target Return

Target Return quantifies the anticipated value to be generated based on metric achievement (Target). This is calculated as the Target for the metric multiplied by the value of one metric instance (Revenue Per Outcome) and further multiplied by the Revenue to Profit % (if defined). 

For example, if no Revenue to Profit % is defined and the Target is 5 deals with an RPO of $1,800, the Target Return is (5 * $1,800) = $9,000. 

With a Revenue to Profit % defined at 50%, the Target Return becomes (5 * $1,800 * 50%) = $4,500.

Current Return

The current return represents the current monetary value of the cumulative sum of a particular metric. It is calculated by multiplying the current count of the metric by the value of one instance of the metric (RPO).

For example, if the current running total of leads is 100 and the RPO is $1,530 then the Current Return is 100 * $1,530, = $1,53,000.

Current Outcome

The Current Outcome is the current value of a metric.

Target Outcome

The Target Outcome is the desired or target value of a metric.

Target CPO (Cost Per Outcome)

Target CPO (Cost Per Outcome) is determined by dividing the allocated amount for the object (Goal or Campaign) by the target metric number. For example, if $131,000 is planned to be spent on a campaign that produces 10,000 leads, the Target CPO is computed as ($131,000 / 10,000) = $13.10.

Current CPO (Cost Per Outcome)

The Current CPO, or Cost Per Outcome, is calculated by dividing the expenses spent for the object by the current metric number. This metric provides an understanding of the cost efficiency of achieving the present outcome.

For instance, if there are $30,000 in expenses, and the current outcome is 1,100 Leads, the Current CPO would be calculated as $30,000 / 1,100, resulting in $27.27.

ROI

ROI, or Return on Investment, is a financial metric used to evaluate the profitability of an investment. 

As of today (2021-03-03), ROI is rounded to one decimal place (e.g., 0.1x), but future considerations may involve using three significant digits (e.g., 0.10x, 1.23x, 12.3x, or 123x).

Target ROI

Target ROI is calculated by dividing the Target Return by the Planned Investment. This is represented as a multiplier (x) applied to the investment. For example, if your ROI target is 3.0x, it means the target ROI is three times your investment. 

Target ROI = ( (Target Return, reduced by Revenue to Profit %) - Planned Investment ) / Planned Investment 

In the given scenario, where the metric target is 500, the Planned budget is $700, the average revenue per outcome is $1, and a 50% reduction is applied, the calculation for Target ROI would be (500 * 1 * 0.5 - 700) / 700 = -0.64

Current ROI

Current ROI is calculated using Current Return divided by Current Investment. This is represented as a multiplier ('x') applied to the investment.

Current ROI = (50*1*0.5 - 500)/500 = -0.95

RROI

RROI, or Revenue Return on Investment, is similar to ROI but does not convert revenue to profit by subtracting overhead costs. The difference lies in the absence of the step converting revenue to profit percentage.

Target RROI

Target RROI, or Target Revenue Return on Investment, is determined by dividing the difference between Target Return and Planned Investment by Planned Investment.

Target RROI = (Target Return - Planned Investment) / Planned Investment

For instance, if the metric target is set at 1000, the planned budget is $700, and the average revenue per outcome is $1800, with no reduction considered (0%), then the Target ROI is computed as:

Target RROI = (1000 * 1800 - 700) / 700 = 2570.429

Current RROI

The Current Revenue Return on Investment (RROI) is calculated similarly to the Target RROI but using the Current Return and Current Investment. 

Current RROI = (Current Return - Current Investment) / Current Investment

For instance, if the current metric value is 100, the planned budget amounts to $500, and the average revenue per outcome stands at $1800, with no reduction considered (0%), then the Target ROI computes as:

Target ROI = (100 * 1800 - 500) / 500 = 359