# Reverse KPI — EU Variant

> Region: EU/EEA + UK
> Currency: EUR (default), GBP, plus PLN, SEK, CHF as relevant
> Locale: GDPR-strict, multi-language, VAT-inclusive pricing, lower CPM than US.

---

## EU-specific benchmarks for reverse KPI

### Average deal size (AOV / ACV) — Net of VAT

| Industry | B2C AOV typical (net) | B2B ACV typical |
|----------|----------------------|-----------------|
| DTC apparel | €30–€100 | — |
| DTC beauty/skincare | €40–€150 | — |
| DTC supplements | €30–€120 | — |
| Consumer electronics | €60–€400 | — |
| Subscription box | €20–€50/mo | — |
| Online education / coaching | €150–€1.5K | — |
| Local services | — | €1.5K–€12K |
| SaaS SMB | — | €4K–€40K |
| SaaS Mid-market | — | €25K–€150K |
| SaaS Enterprise | — | €80K–€400K+ |

> **Important:** EU consumer pricing is shown VAT-inclusive (gross). Plan budget on NET (revenue after VAT removed). VAT varies 17-27% by country.

### VAT considerations by country (B2C selling, 2025)

| Country | Standard VAT | Reduced VAT (some) |
|---------|--------------|---------------------|
| Germany | 19% | 7% (food, books) |
| France | 20% | 5.5–10% |
| UK | 20% | 5% (some) |
| Netherlands | 21% | 9% |
| Spain | 21% | 10% |
| Italy | 22% | 5–10% |
| Poland | 23% | 5–8% |
| Sweden | 25% | 6–12% |
| Hungary | 27% | 5–18% |

### Conversion rates by industry (EU benchmarks)

| Industry | CTR | Click → Lead | Lead → Customer | Visitor → Order |
|----------|-----|--------------|-----------------|-----------------|
| DTC apparel | 1.0–2.2% | — | — | 1.5–3% |
| DTC beauty | 1.3–2.8% | — | — | 1.8–3.5% |
| DTC supplements | 1.3–2.8% | — | — | 2–4.5% |
| Education | 1.3–2.8% | 10–22% | 3–9% | — |
| SaaS | 0.8–2.2% | 7–16% | 10–22% | — |
| Lead-gen B2B | 0.9–1.8% | 7–14% | 12–25% | — |
| Local services | 1.3–3% | 9–18% | 22–38% | — |

> Note: EU funnel rates are slightly lower than US due to GDPR consent gaps + cart abandonment from VAT reveal.

### CPM / CPL / CAC (EU 2025–2026)

| Channel | CPM | CPL | CAC range |
|---------|-----|-----|-----------|
| Meta — DTC | €5–€12 | €10–€25 | €20–€60 |
| Meta — B2B | €12–€30 | €30–€100 | €150–€600 |
| Google Search — DTC | (CPC €1–€4) | €15–€35 | €25–€80 |
| Google Search — B2B | (CPC €4–€20) | €60–€250 | €300–€1.5K |
| TikTok — DTC | €4–€10 | €8–€20 | €20–€60 |
| LinkedIn — B2B | €20–€40 | €80–€250 | €400–€2.5K |
| Xing (DACH B2B) | €15–€30 | €60–€180 | €300–€1.8K |

---

## Example 1 — Reverse calc: DTC skincare (Germany) €150K/month revenue

**Inputs:**
- AOV (net of VAT): €60
- VAT: 19%
- Margin (post-VAT): 32%
- Channels: Meta + Google + TikTok

**Reverse calculation (Base scenario):**

| Step | Pessimistic | Base | Optimistic |
|------|-------------|------|------------|
| Revenue target (net of VAT) | €150,000 | €150,000 | €150,000 |
| Gross sales (incl 19% VAT) | €178,500 | €178,500 | €178,500 |
| AOV (net) | €60 | €60 | €60 |
| **Orders needed** | **2,500** | **2,500** | **2,500** |
| Visitor → Order | 1.8% | 2.7% | 3.5% |
| **Sessions needed** | **138,889** | **92,593** | **71,429** |
| CTR | 1.0% | 1.5% | 2.0% |
| **Impressions needed** | **13.9M** | **6.17M** | **3.57M** |
| CPM | €11 | €8 | €5.50 |
| **Ad budget** | **€152,889** | **€49,360** | **€19,635** |
| **ROAS (gross)** | **1.17x** | **3.62x** | **9.10x** |

**Read:** Plan with €49K base budget. Reserve buffer for FX volatility if reporting in USD.

---

## Example 2 — Forward calc: B2B SaaS DACH (Germany), €25K/mo budget

**Inputs:**
- ACV: €12,000
- Channels: LinkedIn + Xing + Google Search

**Forward calculation:**

| Step | Pessimistic | Base | Optimistic |
|------|-------------|------|------------|
| Budget | €25,000 | €25,000 | €25,000 |
| CPL (LinkedIn + Xing mix) | €180 | €110 | €70 |
| **Leads** | **139** | **227** | **357** |
| Lead → MQL | 28% | 38% | 48% |
| **MQLs** | **39** | **86** | **171** |
| MQL → SQL | 25% | 35% | 45% |
| **SQLs** | **10** | **30** | **77** |
| SQL → Closed-won | 12% | 20% | 28% |
| **Customers** | **1** | **6** | **22** |
| ACV | €12,000 | €12,000 | €12,000 |
| **Revenue (year 1)** | **€12K** | **€72K** | **€264K** |
| **ROAS (year 1)** | **0.48x** | **2.88x** | **10.56x** |

**Read:** Year 1 ROAS often below 3x for B2B; LTV (multi-year contracts) drives true value. Plan for 12-18 months to realize full ROAS.

---

## EU-specific cost considerations

| Cost line | Typical % of net revenue | Notes |
|-----------|-------------------------|-------|
| Ad spend | 15–28% | Lower than US due to lower CPM |
| COGS (DTC) | 25–45% | Similar to US |
| Shipping (within EU) | 5–12% | Cheaper than US/intl |
| Payment processing | 1.4–2.9% | SEPA cheaper than card |
| Returns | 8–18% | EU 14-day right of return drives higher rate |
| VAT compliance | 1–2% (admin) | OSS scheme simplifies multi-country |
| Software/SaaS | 3–7% | Often EU-hosted |
| GDPR compliance overhead | 0.5–2% | DPO, legal, consent management |

---

## EU-specific seasonality

| Period | CPM impact | Action |
|--------|-----------|--------|
| Q4 (esp Nov-Dec) | +25–50% | Pre-load Sep/Oct, plan creative early |
| Black Friday / Cyber Monday | +40–80% | Heavy auction peak, plan 6 weeks ahead |
| Christmas / New Year | -15% (Jan) | Cheap retargeting in Jan, list cleanup |
| Easter | +10–15% (varies by country) | Gift-focused creative |
| Summer (S Europe — Aug shutdown) | -20% (cheap, low engagement) | DACH/UK still active; Italy/Spain/France quiet |
| Back to school (Sep) | +10–15% | Apparel + education peak |
| French sales (les soldes Jan/Jul) | +20–30% | Regulated discount periods |

---

## EU-specific examples by industry

### DTC subscription box (€35/mo, 18-mo LTV €420)

```
Goal: 800 active subscribers in 6 months
Required new subs/month: 160 (assumes 4% monthly churn)
CAC target: €70 max (LTV:CAC = 6:1)
Monthly budget: 160 × €70 = €11,200
Channels: Meta 45%, TikTok 25%, Email retargeting 15%, Influencer 15%
```

### B2B SaaS (DACH, €1,500 ACV mid-market)

```
Goal: €60K ARR in 12 months
Required customers: 40 (=€60K / €1,500)
LinkedIn CPL €120, Xing CPL €85, Trial-to-paid 22%
Required leads: 40 / 0.22 = 182 leads
Annual budget: 182 × €100 (blended CPL) = €18,200 (ad)
+ Sales cost: 1 SDR × €60K loaded
Total: €78K to land €60K ARR (year 1)
LTV-driven: 3-year ACV = €180K → LTV:CAC = 9:1
```

### DTC apparel (UK, £75 AOV, 28% margin)

```
Goal: £200K/month revenue
Orders needed: 2,667
Visitor → Order: 2.5%
Sessions: 106,667
CPM £8, CTR 1.4% → 7.6M impressions
Budget: £61K
ROAS: 3.3x (lower than US due to GDPR + return rate)
```

---

## Currency tips for EU

- **Operating in multiple EU countries:** keep books in EUR, convert at month-end average FX
- **UK trade:** GBP separate from EUR — manage as two currencies
- **Multi-currency Stripe:** Stripe shows native currency to customer, settles in your home currency
- **VAT OSS (One Stop Shop):** Single VAT registration covers all EU B2C sales — simpler than per-country
- **Threshold for distance selling:** €10,000/year EU-wide → above that, OSS recommended

---

## Quality checklist — EU variant

- [ ] Currency confirmed (EUR/GBP/local)
- [ ] AOV reported NET of VAT (not gross)
- [ ] VAT rate noted per primary market
- [ ] OSS scheme considered if cross-border B2C
- [ ] GDPR consent rate factored in attribution gap
- [ ] Multi-language scope clear (DE/FR/IT/ES/EN as needed)
- [ ] EU return rate (14-day right) factored
- [ ] If B2B: LinkedIn first, Xing for DACH, longer sales cycle
- [ ] Country-specific holidays noted (les soldes FR, Aug shutdown S Europe)
- [ ] FX hedging if reporting in non-EUR base

---

## Cross-reference

- Full SKILL.md router: `../SKILL.md`
- Other regions: `01-us.md`, `03-sea.md`, `04-latam.md`
- Performance eval: `../../03-performance-eval-global/variants/02-eu.md`
- Channel setup: `../../11-channel-setup-global/variants/02-eu.md`
