# Performance Evaluation — EU Variant

> Region: EU/EEA + UK
> Currency: EUR / GBP (use EUR as default in this doc)
> Locale notes: GDPR-strict consent stack, fragmented languages/markets, lower CPM than US, mature B2B (LinkedIn/Xing in DE).

---

## EU-specific benchmarks (2025–2026)

### Paid ads benchmarks

| Metric | Poor | Average | Good | Excellent | Your data |
|--------|------|---------|------|-----------|-----------|
| **Meta — CPM** | >€18 | €5–€12 | €3–€5 | <€3 | [#] |
| **Meta — CPC** | >€1.50 | €0.50–€1.50 | €0.30–€0.50 | <€0.30 | [#] |
| **Meta — CPL** | >€25 | €10–€25 | €5–€10 | <€5 | [#] |
| **Meta — CTR** | <0.8% | 0.8–1.5% | 1.5–3% | >3% | [#]% |
| **Meta — CPA (e-com)** | >€40 | €20–€40 | €10–€20 | <€10 | [#] |
| **Google Search — CPC** | >€6 | €1–€4 | €0.40–€1 | <€0.40 | [#] |
| **Google Search — CTR** | <2% | 2–5% | 5–10% | >10% | [#]% |
| **Google Display — CPM** | >€4 | €1.50–€4 | €0.80–€1.50 | <€0.80 | [#] |
| **TikTok Ads — CPM** | >€12 | €4–€10 | €2–€4 | <€2 | [#] |
| **TikTok Ads — CTR** | <0.5% | 0.5–1.2% | 1.2–2.5% | >2.5% | [#]% |
| **LinkedIn — CPM** | >€40 | €20–€40 | €10–€20 | <€10 | [#] |
| **LinkedIn — CPC (B2B)** | >€12 | €5–€12 | €3–€5 | <€3 | [#] |
| **LinkedIn — CPL (B2B SaaS)** | >€180 | €80–€180 | €40–€80 | <€40 | [#] |
| **Xing — CPC (DACH B2B)** | >€8 | €3–€8 | €1.50–€3 | <€1.50 | [#] |

### Funnel conversion

| Step | Average | Good | Your data |
|------|---------|------|-----------|
| Impression → Click | 1–2% | 3%+ | [#]% |
| Click → Lead | 8–15% | 20%+ | [#]% |
| Lead → Sales-qualified | 25–40% | 50%+ | [#]% |
| SQL → Customer (B2C) | 12–20% | 25%+ | [#]% |
| SQL → Customer (B2B) | 8–18% | 22%+ | [#]% |
| Customer → Repeat (90d) | 18–30% | 40%+ | [#]% |

> Note: EU conversion is often lower than US due to GDPR tracking gaps + cart abandonment from VAT reveal at checkout.

### Email + organic

| Metric | Poor | Average | Good | Excellent | Your data |
|--------|------|---------|------|-----------|-----------|
| Email open rate | <14% | 20–28% | 28–38% | >38% | [#]% |
| Email click-through | <1.5% | 2–4% | 4–7% | >7% | [#]% |
| Email conversion (e-com) | <0.6% | 1–3% | 3–6% | >6% | [#]% |
| TikTok engagement rate | <2% | 3–6% | 6–10% | >10% | [#]% |
| Instagram engagement | <0.5% | 1–2% | 2–4% | >4% | [#]% |

> Email open rates trend higher in EU due to GDPR opt-in (cleaner lists) + double opt-in being standard.

### Industry-specific CAC / LTV (EU)

| Industry | Typical CAC | Typical LTV | Healthy LTV:CAC |
|----------|------------|-------------|-----------------|
| DTC e-commerce (apparel) | €20–€50 | €80–€350 | 3:1+ |
| DTC e-commerce (beauty) | €30–€70 | €120–€500 | 4:1+ |
| SaaS (SMB) | €180–€700 | €1.5K–€12K | 5:1+ |
| SaaS (Enterprise) | €4K–€40K | €40K–€400K | 4:1+ |
| Fintech | €40–€150 (CPA) | €300–€2K | 3:1+ |
| Education/coaching | €70–€250 | €400–€4K | 4:1+ |
| Lead-gen B2B services | €80–€400 | €2K–€18K | 5:1+ |

---

## Common pitfalls — EU market

| Pitfall | Why it hurts | Fix |
|---------|--------------|-----|
| **GDPR tracking gaps** | 30-50% users decline cookies | Server-side (CAPI), first-party data, contextual targeting |
| **Cookie consent banners** | Refusal rates 20-40% | Optimize banner UX, accept-all CTA tested |
| **Multi-language complexity** | Same ad in DE/FR/IT/ES requires translation + culture | Localize creative, not just translate |
| **VAT reveal at checkout** | Cart abandon spikes | Show VAT-inclusive prices upfront in DE/FR |
| **Mature B2B = LinkedIn dominance** | Meta B2B doesn't work as well | Shift B2B budget to LinkedIn (DE: also Xing) |
| **Slower mobile payments** | Apple Pay/SEPA varies by country | Multi-payment integration (Klarna, iDEAL, Bancontact, SEPA) |
| **Schrems II / data residency** | US tools may face legal scrutiny | EU-hosted ESPs, AWS Frankfurt |
| **Local platform variance** | DE has Xing, BeNeLux uses RTL ad networks | Consider local platforms beyond Meta/Google |
| **Holiday seasonality differs** | August dead in S Europe, Christmas heavy in N | Adjust budget by sub-region |

---

## Regional case study — EU SaaS (B2B SMB)

**Brand:** German SMB SaaS (project management). ACV €1,200. Funnel: Free trial → paid.

**Symptoms:**
- LinkedIn CPL €180 (target €100)
- Trial-to-paid 18% (target 25%)
- Meta unable to scale, CAC €420

**5-Whys:**
| Round | Why? | Answer |
|-------|------|--------|
| 1 | LinkedIn CPL too high? | Low CTR (0.4%) on Sponsored Content |
| 2 | Low CTR? | Generic English creative, German DM/Sales target |
| 3 | English creative? | Translation done, but cultural tone too US-style |
| 4 | US tone? | Hired US copywriter, didn't localize tone |
| 5 | Why not localized? | No SOP for German B2B copy review |

**Action plan:**
1. Hire DACH B2B copywriter for review pass
2. Add Xing campaign (DACH B2B)
3. Switch Meta to retargeting only (Meta weak for cold B2B)
4. Trial onboarding email sequence — German tone (longer, more formal)

**Result (8 weeks):**
- LinkedIn CPL → €110
- Xing CPL: €85 (cheaper than LinkedIn for DE)
- Trial-to-paid → 27%

---

## Dropshipping context — EU

EU dropshipping is harder than US:

| Factor | Impact | Tactics |
|--------|--------|---------|
| VAT (IOSS for <€150 from non-EU) | Margin compression | Register IOSS or use EU 3PL |
| Long China shipping | Customers expect 5-7d EU standard | EU-warehouse stock, local fulfillment |
| 14-day return right (EU consumer law) | Higher refund rate | Build return cost into margin |
| Multi-currency (EUR, GBP, PLN, SEK) | FX volatility | Multi-currency Stripe, local pricing |
| Language fragmentation | Conv rate drops without local lang | Localized landing pages minimum |
| Cookie consent | 20-40% data loss | First-party data, email + SMS |

**EU dropshipping ROAS targets:**

| Margin | BE-ROAS | Healthy ROAS | Scale ROAS |
|--------|---------|--------------|------------|
| 20% | 5.0x | 6.0x | 7.5x+ |
| 25% | 4.0x | 4.8x | 6.0x+ |
| 30% | 3.33x | 4.0x | 5.0x+ |
| 40% | 2.5x | 3.0x | 4.0x+ |

> Note: EU margins are typically lower than US due to VAT, longer shipping, and stricter consumer law.

---

## EU-specific compliance flags

| Area | Rule | Impact on ads |
|------|------|---------------|
| GDPR consent | Granular, opt-in, withdrawable | Tracking blocked until consent given |
| ePrivacy / Cookie law | Consent before any non-essential cookie | Affects pixel firing |
| DSA (Digital Services Act) | Transparency on ad targeting | Public ad library required |
| Health/medical claims | EFSA-approved only for food/supplements | No "cures" or "treats" claims |
| Financial services | Strict country-by-country licensing | Local-licensed only |
| GDPR — Right to be Forgotten | Must delete user data on request | Update CRM + ESP processes |
| Schrems II / data transfers | Limit US data transfers | EU-hosted tools where possible |
| Influencer disclosure | Different per country (DE: stricter) | #Werbung in DE; #ad accepted EN |
| VAT (IOSS) | Goods <€150 from outside EU | Register IOSS or pay at customs |

---

## EU-specific channel mix recommendations

For most EU brands:

| Channel | Recommended split | Why |
|---------|------------------|-----|
| Meta (FB+IG) | 30-45% | Still strong but less dominant than US |
| Google (Search + Shopping) | 25-40% | Search intent + Comparison-shopping |
| LinkedIn (B2B) | 35-55% (if B2B) | Dominant for B2B in DE/UK/NL/FR |
| TikTok | 10-20% | Growing, lower CPM than US |
| Email + SMS | 10-20% | Higher open rates than global avg |
| Xing | 5-15% (DACH B2B) | German-speaking B2B alternative |
| Local platforms | 5-15% | Bol.com (NL), Allegro (PL), Otto (DE) |

---

## Quality checklist — EU variant

Before delivering EU performance evaluation:

- [ ] Currency clarified (EUR, GBP, PLN, SEK)
- [ ] GDPR consent rate factored in attribution gap
- [ ] CAPI/server-side tracking status checked
- [ ] Multi-language status (which locales? translated vs. localized?)
- [ ] If e-com: VAT-inclusive pricing displayed pre-checkout
- [ ] If dropshipping: IOSS or EU 3PL planned
- [ ] If B2B: LinkedIn first, Meta as retargeting
- [ ] If DACH B2B: Xing considered
- [ ] Sub-region holiday seasonality factored
- [ ] Schrems II compliance verified for tools

---

## Cross-reference

- Full SKILL.md router: `../SKILL.md`
- Other regions: `01-us.md`, `03-sea.md`, `04-latam.md`
- Reverse KPI calculation: `../../10-reverse-kpi-global/variants/02-eu.md`
- Channel setup: `../../11-channel-setup-global/variants/02-eu.md`
