The problem
Marketing budgets move quickly while the value of acquired customers develops over time.
The signal
Campaign costs, new customers, eligible purchase events and modeled customer lifetime contribution where supported.
The action
Compare acquisition and retention audiences; build a relevant follow-up campaign and prioritize measurements that distinguish spend from actual returns.
The measurement
CAC = attributable acquisition spend/new customers. Campaign ROI is based on an approved revenue or contribution methodology. CLV/CAC is an economic ratio—not campaign ROI.
A practical question
Which campaigns bring back customers who contribute value after the first purchase?
Key terms
TermDefinitionCaveat
CAC
Eligible acquisition marketing cost divided by new customers acquired in the same defined cohort and window.
Cost allocation, new-customer identification and the window must be consistent.
CLV, historic
Value attributed to a customer to date. Say whether it is revenue or contribution.
Not a forecast of future value.
CLV, predicted
Expected future customer value over a set horizon, from a validated model.
An estimate with uncertainty, never a guarantee.
CLV/CAC
Lifetime contribution estimate per acquired customer, divided by CAC.
Not campaign ROI. State the time horizon and the contribution used.
Campaign ROI
(Attributed incremental contribution minus campaign spend), divided by campaign spend, where incrementality is supported.
If only attributed sales are available, call it reported return, not ROI.
What IDEAL could add
Governed recommendations prioritizing investigation opportunities based on customer economics and evidence.
Register Interest in IDEAL