Knowledge Base

Name: Prodwave
Availability: InStock
Author: Prodwave

Acquisition & Marketing

Customer acquisition metrics — cost, conversion funnel, viral coefficient, and channel lifecycle.

CAC

\text{CAC} = \frac{\text{Channel Expenses} + \text{Referral Expenses}}{\text{New Customers}}

Cost of acquiring one customer. Includes all marketing expenses (paid channels + referral program), divided by the number of new customers for the period.

How we calculate in Prodwave: We sum all channel costs and referral program expenses for the month, then divide by the number of new customers (newCardsThisMonth).

Used in: Unit Economics, LTV/CAC, CAC Payback Period

Affects: Marketing efficiency, unit economics, investment attractiveness

CPM

\text{Cost} = \frac{\text{Reach}}{1000} \times \text{Rate}

Cost Per Mille — cost per 1,000 ad impressions. Used for display and banner advertising.

How we calculate in Prodwave: cost = (reach / 1000) × rate. Cost does not depend on clicks or conversions.

CPC

\text{Cost} = \text{Clicks} \times \text{Rate}

Cost Per Click — cost of one ad click. Standard model for contextual and targeted advertising.

How we calculate in Prodwave: cost = clicks × rate. Clicks are calculated as reach × convToClicks.

CPI

\text{Cost} = \text{Installs} \times \text{Rate}

Cost Per Install — cost of one app installation. Used for mobile campaigns.

How we calculate in Prodwave: cost = installs × rate. Installs = clicks × convToInstalls.

CPO

\text{Cost} = \text{Sales} \times \text{Rate}

Cost Per Order — cost of one sale (registration, order). The most "expensive" model but with the least risk.

How we calculate in Prodwave: cost = sales × rate. Sales = installs × convToSales.

Conversion Funnel

\begin{aligned}\text{Clicks} &= \text{Reach} \times \text{Conv. to Clicks\%} \\\text{Installs} &= \text{Clicks} \times \text{Conv. to Installs\%} \\\text{Sales} &= \text{Installs} \times \text{Conv. to Sales\%}\end{aligned}

A sequence of stages from first contact to purchase: Impressions → Clicks → Installs → Sales. At each stage, a portion of users drops off.

How we calculate in Prodwave: Each stage is multiplied by its conversion rate: clicks = reach × convToClicks%, installs = clicks × convToInstalls%, sales = installs × convToSales%.

Conversion Rate

The share of users who move from one funnel stage to the next. Measured in percentage.

How we calculate in Prodwave: Set by the user for each funnel stage of each subchannel (convToClicks, convToInstalls, convToSales).

K-factor

K = \text{Referral Rate} \times \text{Avg. Invites} \times \text{Invite Conversion}

Viral coefficient of the product. K > 1 means exponential growth without marketing costs. In practice, values of 0.1–0.5 are realistic.

How we calculate in Prodwave: K = (referralRate / 100) × avgInvites × (inviteConversion / 100). Referral customers = activeCards × K.

Reach

Reach — the number of unique users who see the ad message per month. The entry point of the conversion funnel.

How we calculate in Prodwave: Set by the user for each subchannel. Multiplied by effectiveness (from lifecycle) to get effective reach.

Ramp-up

Channel ramp-up phase. The channel gradually reaches full effectiveness (from 0% to 100%) over a specified number of months.

How we calculate in Prodwave: Duration (rampUpMonths) and profile (linear/exponential) are set for each subchannel. Effectiveness smoothly grows from 0 to 1.

Decay

Channel decay phase. After the peak phase, the channel gradually loses effectiveness down to a specified minimum level.

How we calculate in Prodwave: Duration (decayMonths), minimum level (decayFloor), and profile (linear/exponential) are set for each subchannel.