Basic CPI: –
Campaign CPI: –
Channel CPI: –
The Cost Per Inquiry Calculator is a marketing tool that helps businesses measure the cost effectiveness of their advertising campaigns by calculating the expense incurred for each inquiry generated. It assists marketers in determining how much they spend to acquire a lead or potential customer. By using this calculator, companies can optimize their advertising budgets, improve campaign strategies, and compare different marketing channels to identify the most cost-effective methods for generating inquiries.
Formula of Cost Per Inquiry Calculator
Basic CPI: Cost Per Inquiry = Total Marketing Cost / Number of Inquiries Received
For Campaign Specific CPI: Campaign CPI = Campaign Expenses / Number of Campaign Inquiries
For Multiple Channel Analysis: Channel CPI = Channel Marketing Cost / Channel Inquiries
In these formulas:
- Total Marketing Cost is the overall amount spent on advertising.
- Number of Inquiries Received refers to the total count of inquiries generated from the campaign.
- Campaign Expenses are the costs allocated to a specific campaign.
- Channel Marketing Cost is the expense incurred on a specific marketing channel.
- Channel Inquiries are the inquiries generated from that channel.
General Terms Table
Below is a table that outlines common terms and provides examples for quick reference:
| Term | Definition | Example |
|---|---|---|
| Total Marketing Cost | Overall amount spent on the advertising campaign | $5,000 |
| Number of Inquiries Received | Total inquiries generated from the campaign | 250 inquiries |
| Cost Per Inquiry (CPI) | Expense incurred for each inquiry | $5,000 / 250 = $20 per inquiry |
| Campaign Expenses | Costs allocated to a specific advertising campaign | $1,200 |
| Number of Campaign Inquiries | Inquiries generated from that specific campaign | 60 inquiries |
| Channel Marketing Cost | Cost incurred on a particular marketing channel | $800 |
| Channel Inquiries | Inquiries generated from the marketing channel | 40 inquiries |
This table helps in quickly understanding and applying the formulas without the need for repetitive calculations.
Example of Cost Per Inquiry Calculator
Imagine a company spends $5,000 on an online advertising campaign and receives 250 inquiries. To calculate the basic cost per inquiry, follow these steps:
- Use the formula:Cost Per Inquiry = Total Marketing Cost / Number of Inquiries Received
- Substitute the values:Cost Per Inquiry = $5,000 / 250
- Calculate:Cost Per Inquiry = $20 per inquiry
If the company wants to analyze a specific campaign that cost $1,200 and generated 60 inquiries, the Campaign CPI would be:
Campaign CPI = $1,200 / 60 = $20 per inquiry
Similarly, if a particular marketing channel cost $800 and brought in 40 inquiries, the Channel CPI is:
Channel CPI = $800 / 40 = $20 per inquiry
These calculations show that the company spent $20 for each inquiry across different aspects of the campaign, allowing for clear budget comparisons and performance assessments.
Most Common FAQs
The calculator helps determine the efficiency of advertising campaigns by measuring the cost for each inquiry generated. It enables businesses to assess the return on investment for their marketing efforts and adjust strategies to reduce costs.
For a specific campaign, divide the total campaign expenses by the number of inquiries generated during that campaign. This provides a precise cost per inquiry for that campaign.
Yes, the calculator can analyze costs across different marketing channels by dividing each channel’s marketing cost by the number of inquiries generated from that channel. This helps in identifying which channel is most cost-effective.