What is a good cost per opportunity?
Cost per opportunity is sharper than cost per lead because opportunities predict revenue, but it still has no universal benchmark. What counts as good depends entirely on deal size and win rate.
The test is whether cost per opportunity rolls up into an acceptable CAC. A given cost per opportunity can be excellent or terrible depending on how many opportunities it takes to win a customer and what that customer is worth.
Short answer
A good cost per opportunity is one that, combined with your win rate and deal size, produces a healthy CAC and LTV to CAC ratio. There is no universal dollar figure: a 5,000 dollar cost per opportunity is fine for large deals and ruinous for small ones. Judge it by channel and against your acquisition economics.
Key takeaways
- No universal figure; depends on deal size and win rate.
- Must roll up into a healthy CAC.
- Sharper than cost per lead because opportunities predict revenue.
- Compare by channel and against acquisition economics.
Judging cost per opportunity
Multiply cost per opportunity by the number of opportunities needed to win a customer (1 divided by your opportunity-to-close rate) to get demand-gen cost per customer. If that, plus sales costs, keeps CAC and LTV to CAC healthy, the cost per opportunity is good.
Segment it by channel. A channel with a higher cost per opportunity but better win rate or larger deals can still produce the most efficient customers, which the raw cost per opportunity alone would hide.
How Ardovo handles it
Ardovo computes cost per opportunity by channel and links it to opportunity-to-close rates, deal size, and CAC, so you see the full economics. Rook flags channels whose cost per opportunity looks fine but whose deals close poorly or run small.
Frequently asked questions
What is a good cost per opportunity?
One that, with your win rate and deal size, produces a healthy CAC and LTV to CAC ratio. There is no universal figure: the same cost per opportunity can be excellent for large deals and ruinous for small ones.
How does cost per opportunity relate to CAC?
Multiply it by the opportunities needed to win a customer (1 divided by opportunity-to-close rate) to get demand-gen cost per customer, a major component of CAC. A good cost per opportunity is one that keeps CAC healthy.
Why is cost per opportunity better than cost per lead?
Because opportunities are qualified and predict revenue far better than raw leads. A channel with cheap leads but expensive opportunities has a lead-quality problem that cost per opportunity exposes and cost per lead hides.