Cost per Objective Option (CPOO) - Sales Glossary - Upnify
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Cost per Objective Option (CPOO)

The Cost per Objective Option (CPOO) is a metric used in marketing and advertising that indicates how much it costs to achieve a specific goal, such as a sale, a subscription, or an app download. It is an important measure for sales and marketing teams, as it helps them assess the effectiveness of their campaigns and make informed decisions about resource allocation.

CPOO is calculated by dividing the total cost of an advertising campaign by the number of objective options achieved during that campaign. For example, if a company spends $1000 on an advertising campaign and achieves 100 sales as a result of that campaign, the CPOO would be $10 ($1000 / 100 sales = $10 per sale).

CPOO is a key metric for evaluating the performance of an advertising campaign because it provides detailed information about how much it costs to acquire a new customer or achieve a specific goal. If the CPOO is low, it means the campaign is effective and the company is getting a good return on its advertising investment. On the other hand, if the CPOO is high, it may be a sign that the campaign is not performing as well as expected and adjustments need to be made to improve its performance.

A concrete example of CPOO would be as follows: an e-commerce company launches an advertising campaign on Facebook to promote a new product. During the duration of the campaign, the company spends $500 on advertising and achieves 50 sales as a direct result of that campaign. To calculate the CPOO, the total cost of the campaign ($500) is divided by the number of sales achieved (50), resulting in a CPOO of $10 per sale.

Once the CPOO is calculated, the company can use this information to make informed decisions about its marketing and sales strategies. For example, if the CPOO is high, the company might opt to adjust its pricing strategy, improve the targeting of its ads, or look for ways to optimize its advertising campaigns to reduce costs and improve the return on investment.

The Sales Glossary is a compendium of all the most commonly used terminology in sales strategy. Many of the concepts listed here are used when implementing a CRM system or a digital sales funnel, no matter if they are legacy systems or an online CRM. See also our blog that deals with sales techniques, marketing and sales culture.