Attribution has always been tricky.
Attribution will get even harder with the monumental shifts in privacy in the next few months.
Tracking attribution is pointless without understanding the value of each customer.
Which of those customers attributed to each channel will buy once and which will buy again and again?
The answer will greatly inform how brands diversify their ad spend and grow to LTV to CAC ratio.
Here's how Good Clean Love ($50M CPG brand) solves these challenges:
- Spent $8,000 on Facebook to acquire 2 customers, but none of them were predicted to be High LTV customers
- Good Clean Love is able to see how campaigns performed against the most important KPI: more sales from the best customers (predicted LTV)
- Ocurate's insights helped the brand divest from low-performing customers and channels (accounting for 30% of its budget)
- Results: Orders for high LTV customers increased by 22%, orders for medium LTV customers increased by 46%, orders for low LTV customers decreased by 51%
On average, High LTV customers generate 16x more in gross profit than everyone else and low LTV customers never overcome their CAC.