Strategy and goals
Efficiency vs growth
The trade-off between spending to keep cost per result low and spending to win more customers at a higher cost.
What it is
Most accounts can be made cheaper by spending less, and bigger by accepting a higher cost per result. The right point depends on margin, cash and the value of a customer.
Why it matters
For lead generation and e-commerceWithout an agreed position, teams swing between the two each quarter and judge the same campaign by different rules.
In practice
Set a target (a cost per result, return or payback) that the business can afford, then grow spend while the target holds.
A common mistake
Calling a rising cost per result a failure when the business chose growth, or a flat one a success when growth was the goal.
All terms