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.

How to calibrate marketing campaigns to maximise profit.

A campaign’s profit is defined as the gross margin it generates, less its costs.

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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.

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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…

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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…

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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?…

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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…

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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…

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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.

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