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Channel Profitability

Acquisition channels ranked by CAC, LTV, margin, and payback. Focus investment on profitable channels.

Acquisition Channels Performance

Channel Customers Revenue CAC LTV LTV:CAC Margin Status
No channel data yet. As customers arrive through tracked channels, profitability metrics will appear here.

CAC: Customer Acquisition Cost — total cost to acquire ÷ customers acquired

LTV: Customer Lifetime Value — gross profit per customer (historical)

LTV:CAC Ratio: Target 3:1 or higher for sustainable growth

Payback: How many days until CAC is recovered from customer profit

TEST
Early validation phase. Limited data.
MAINTAIN
Baseline performance. Sustain current effort.
INCREASE
Profitable. Good LTV:CAC. Scale spend.
DECREASE
Declining returns. Reduce investment.
PAUSE
Not profitable. Stop or investigate.

Capital Allocation Framework

✓ INCREASE Spending (Profitable Channels)

Criteria:

  • ✓ LTV:CAC ratio ≥ 3:1
  • ✓ Payback period ≤ 90 days
  • ✓ Repeat purchase rate ≥ 20%
  • ✓ Consistent month-over-month growth

Action: Allocate additional budget to proven profitable channels.

⚠ MAINTAIN Current Effort (Baseline Channels)

Criteria:

  • • LTV:CAC ratio 1.5:1 to 3:1
  • • Stable performance over time
  • • Acceptable refund rates

Action: Hold spend constant, monitor for trends.

✗ PAUSE Unprofitable Channels

Criteria:

  • ✗ LTV:CAC ratio < 1:1
  • ✗ CAC payback > 120 days
  • ✗ Declining trend over 2+ months
  • ✗ High refund rates from channel

Action: Pause spending. Investigate root cause. If unresolved in 30 days, archive.

CAC Payback Timeline

📊
Once customers are acquired through tracked channels, the system calculates how long it takes to recover the acquisition cost from their contribution margin.
Target: Payback within 90 days of acquisition

Channel Concentration Risk

Healthy marketplace should not depend on one channel:
Top Channel %
—
Top 5 Channels %
—
Channel Diversity
0
Risk Status
No Data
⚠️ Risk if any single channel provides >50% of customers. Diversify acquisition to reduce dependency.
Data Source: Conversion events tagged with acquisition_source + purchase tracking. CAC calculated from actual acquisition spend where available.

Without acquisition spend data, system calculates CAC as: Marketing spend ÷ New customers. Shows "Calculating..." until actual spend is logged.