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Balancing Budgets and Bonuses
This chapter explores the distinctions between cost per lead (CPL) and cost per customer acquisition (CPA) while emphasizing the significance of understanding conversion rates for effective budgeting. The discussion highlights the need for collaborative budgeting processes and the importance of structuring bonuses to align employee performance with organizational goals. Additionally, it addresses the complexities of incentivizing managers to balance customer satisfaction with profitability, stressing the value of accountability and educational outcomes in performance metrics.