Customer Lifetime Value (LTV)

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ROAS measures the revenue generated for every dollar spent on PPC advertising.
ROI represents a broader view of profitability across all business activities.
Use ROI as a key performance indicator. With this data, you can easily qualify the profitability of your investments across various business lines and gain a broad understanding of the financial impact of your activities.

When setting KPIs and developing ROI calculations, make sure you use all financial elements, including personnel costs or tooling and overhead costs. Including all expenses will help you create a completely accurate financial picture.


LTV represents the total revenue generated by a customer during their relationship with your business.

By setting KPIs using LTV, you get accurate information about revenue and long-term profitability modeling.

Track LTV by channel and identify the best strategies for acquiring new customers, allowing you to more accurately target the highest-value customers.

Payback period
The payback period determines the time required to recover venezuela mobile database the investment associated with acquiring a customer.

How to evaluate payback period? Use KPIs to track information to make scaling decisions, optimize efficiency, and assess potential profitability.

A longer payback period indicates the need to better optimize acquisition strategies or reduce costs. A shorter payback period supports scaling.

Compare your KPI, CAC and LTV and calculate your KPI payback period. If your LTV exceeds your CAC, you will recover your costs over time.

Setting Meaningful KPIs – and Why You Should Stick to Them
When setting KPIs, base them on accurate historical data. Misleading or even bad information can distort your goals, leading to unattainable targets. Focus only on KPIs that significantly impact your long-term business success and profitability.