Optimize ROAS With Predictive CLV

Optimize your ROAS and acquisition costs in real time with early and predictive customer lifetime value (eCLV and pCLV) features. Gain insights into your best-fit customers and know who to target so your marketing team can optimize campaigns and budgets to maximize returns.

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Recommendations: Campaign Budget Optimization

Strategic marketers are always looking for ways to optimize ad spend and ROAS. Each campaign will have a cost per acquisition (CPA) goal, but costs per click, not conversion, could drive up the CPA.

Another issue plaguing marketing is that campaigns have to wait 30-, 60-, or even 90-days before campaign performance can be measured and adjustments made. This impacts acquisition costs and ROAS significantly.

Retina eCLV and pCLV features empower data analysts and marketers so they can make intelligent choices about targeting and ad spend in real time. By optimizing campaigns for the highest-value targets, these teams can optimize ROAS and make positive business impacts.

Case Study

Problem: The client was not able to reliably adjust budgets or bid caps any faster than 60-days.

Retina Solution: Score all customers with eCLV to create appropriate target CPAs for each campaign.

Baseline Experiment Design: To demonstrate the accuracy of the eCLV developed targets, run a campaign using current method for computing target CPAs and compare to the Retina eCLV targets. Compare target CPAs from current method and target CPAs using eCLV to actual CPAs.

Results: New CPAs from eCLV should start to line up with targets much faster than they did before, ultimately resulting in improved ROAS.

ROI Tracking

Cost Savings

Optimizing CPAs can help you waste less money and time on low-value campaigns.

Increased Revenue

Quickly optimizing target CPAs of higher-value campaigns nets higher ROAS and conversion rates.

Opportunity Cost

Inaccurate target CPAs could cause you to spend too much on campaigns targeting low-value customers and not enough on campaigns targeting high-value customers.

How to Implement

  1. Score all customers using eCLV and pick a campaign to test.
  2. Set up test A: Aggregate LTV up to the campaign level and use 1-year CLV to set target CPA. (Note: Do not make changes > 15% to avoid drastic changes to the auction.)
  3. Set up test B: Use the current methodology to set target CPA.
  4. Run campaign.
  5. Determine whether A or B had target CPAs closer to the actual CPA and calculate ROAS.
  6. If A test performs better / produces better ROAS, apply to all campaigns
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