Performance channels (Social, Google, Affiliate, Display, etc)
KPI: CAC
Primary source: in-platform CPA (try to exclude existing cust)
Secondary source: match table of LC CAC (GA to Shopify)
Modification: after incrementality is calculated, modify both sources
Calculate true iCAC (through MMT, LRA, CIA, etc)
Modify platform aCAC and LC aCAC
Example:
aCAC = $250
iCAC = $50
aCAC mod = 25%
Program optimizations:
Test incrementality of different tactics (PRS, RTG, RTN)
Test inc of different buying models (conv, r+f, views, etc)
Test inc of different creative platforms (product vs lifestyle, etc)
Test inc of different budget levels and media mixes
Non-performance channels (CTV, YouTube, Influencer, etc)
KPI: CAC (blended at business level, supported by leading indicators)
Video content KPIs: reach, frequency, video engagement
Influencer type KPIs: reach, engagement, attributed traffic
Leading indicators: brand search demand, dir+org traffic
Optional: brand lift metrics (BLS study in-platform or third party)
Modification: after incrementality is calculated, apply to spend
Calculate true iCAC (through MMT, LRA, CIA, etc)
Apply coefficient to spend levels
Example:
iCAC = $50
Spend = $50k
iNTF = 1,000
Program optimizations:
Test incrementality of different tactics (PRS, RTG, RTN)
Test inc of different buying models (conv, r+f, views, etc)
Test inc of different creative platforms (product vs lifestyle, etc)
Test inc of different budget levels and media mixes
Benchmarking and creating in-platform goals for New Customers
At times there is no incrementality measurement available, and no historical data
You can use standard benchmark assumptions based on business goals
Reach goal baseline: 15% of total addressable market
Frequency goal baseline: 2x avg frequency per week (acct aggregate)
Performance channel CAC baseline:
Start with business goal (unit economics, COGS, LTV:CAC, etc)
Multiply the business goal by a baseline of incrementality
In-platform: 2x business goal CAC
Last click: 3x business goal CAC
Example:
Biz goal CAC = $50
In platform = $100
Last click = $150
Non-performance channel engagement metrics can use the industry dash