Profit, marginal ROI and lifetime value
Eight articles for moving beyond ROAS and steering campaigns on what is left at the end: marginal ROI, customer lifetime value, lead quality and the conversion rate to aim for.
September 2, 2019
How to calibrate marketing campaigns to maximise profit.
A campaign’s profit is defined as the gross margin it generates, less its costs.
October 2, 2019
Multiply the profit of your PPC campaigns by using marginal ROI.
Why using marginal ROI to optimise your PPC campaigns is the only genuinely effective method.
February 2, 2020
Stop setting ROI objectives!
Return on Investment (ROI) is often used as the most fundamental KPI in marketing. Setting fixed ROI objectives for your marketing campaigns is far from being the optimal way of working if you wish…
March 2, 2020
How and why to bring referral into the way you build marketing campaigns
When your customers receive a bonus or a gift for referring new customers, beyond the new customers they bring directly, it creates a snowball effect that works very much in your campaigns’ favour…
October 2, 2020
Computing the Average Customer Lifetime Value (considering many cohorts)
The Lifetime Value of your customers (LTV) is an essential metric that allows you to define how much you can spend to attract a client while remaining profitable. But did you know how to compute it?…
November 2, 2020
Second-level optimisation: how to optimise your campaigns taking different lead qualities into account
Analysing the quality of the leads each acquisition source brings, and taking it into account, is essential to maximising your campaigns’ profit. Bring those variables into your optimisation and…
November 22, 2022
The mathematical method for calculating a sound conversion rate.
The conversion rate is an essential value for measuring how effective your conversion funnel is. It shows which stage of the funnel causes trouble in the move from lead to customer, and lets a more…
June 10, 2023
Lifetime value (LTV) targeted per customer
Lifetime value (LTV) is a key KPI in digital marketing. LTV is a customer’s value, and therefore the most a company can afford to pay to acquire a new customer while staying profitable.










