1. Optimize Ad Spend Using CAC and LTV Data
Prioritize channels that have the highest LTV-to-CAC Ratio.
A strong ratio (e.g., LTV > 3x CAC) signals a profitable channel worth scaling.
For underperforming channels with high CAC, explore these tactics:
Improve ad creative relevance.
Refine audience targeting to ensure you're reaching high-intent customers.
Experiment with different bidding strategies.
2. Strengthen Organic Search Strategy
If organic search is underperforming, optimize SEO efforts by:
Improving website structure for better indexing.
Creating high-value content to rank for relevant keywords.
Adding schema markup to boost visibility in search results.
✅ Tip: Pages that perform well in paid channels can often benefit from organic SEO targeting the same keywords.
3. Boost Customer Acquisition from Email Marketing
If email has a strong CAC-to-LTV Ratio, expand efforts by:
Creating automated email flows for welcome, post-purchase, and re-engagement campaigns.
Segmenting audiences for personalized offers.
Highlighting your best-selling or high-LTV products in email content.
4. Improve Performance for High-Traffic, Low-Converting Channels
If a channel drives significant traffic but few conversions, consider:
Enhancing the landing page design.
Adding clearer calls to action (CTAs).
Ensuring messaging consistency between ads and landing pages.
Retargeting those visitors with personalized offers.
5. Scaling Winning Ad Campaigns
Identify campaigns with high ROAS (Return on Ad Spend) and scale them by:
Increasing the budget gradually to maintain efficiency.
Expanding audience targeting to include lookalike audiences.
Using successful ad creatives as templates for new campaigns.
Example Scenario
Business Context: A home goods eCommerce brand finds that Google Ads has a CAC of $78.76 but an impressive LTV of $509.64 — suggesting a profitable long-term strategy. However, Meta Ads drives more visitors but has a higher drop-off rate.
❗ Action Plan:
Increase investment in Google Ads, particularly for high-performing keywords.
Launch retargeting ads on Meta Ads to improve conversions for dropped-off users.
Create an email nurture sequence targeting new Meta Ads visitors with curated product recommendations.