Lengow allows you to optimise the profitability of your campaigns to acquire traffic through price comparison websites. However, you must choose the method for calculating ROI which is most appropriate to you. Here’s some information to help you understand the different calculation methods before you choose.
1. Choosing an ROI calculation method on Lengow
To choose your method of calculation, go to the Customer Account page, “Tracking” tab. Here are the available formulae.
Choose your formula for calculating ROI:
2. Which method of calculation to choose?
Taking the example of the following values: Cost =25 € ÷ Turnover = 90 € ÷ Margin = 15 €
- COST ÷ ORDER VALUE x 100 = 27.8%
For an investment of 27.8 €, you get back 100€. This method of calculation is based on the turnover generated and doesn’t show your return on net investment.
- ORDER VALUE ÷ COST x 100 = 360%
For an investment of 100 €, you get back 360€. This is the opposite calculation to COST/ORDER VALUE x 100
- COST ÷ MARGIN x 100 = 166.7%
For an investment of 166.7€, you get back 100€ net. This method is based on your net margin and allows you to determine return on actual investment.
- MARGIN ÷ COST x 100 = 60%
This is the opposite of the previous calculation: for 60€ net return, you invested 100%
- ORDER VALUE ÷ COST = 3.6
This is an indicator. You get back 3.6 times your initial investment.
- ORDER VALUE - COST ÷ COST = 2.6
This is also an indicator. You get back 2.6 times your initial investment.
3. How to enter my margin on Lengow?
In order to enter your margin on Lengow, your source feed must contain a field “Marge_produit” indicating your percentage margin by product (in number format without the % symbol).
You must then inform us so that we can take it into account.