What metric should you use to determine ROI for completed campaigns?

• A. Total LTV
• B. LTV to CAC ratio
• C. AOV
• D. Purchase frequency

Answer: (A)

The main idea here is to capture the full value that a campaign returns over the lifetime of the customers it brings in. Total lifetime value sums up all the revenue those customers are expected to generate across their entire relationship with the business. For completed campaigns, you want a single number that reflects how much value was created by the acquired customers, not just what happened in one purchase or how often they buy. AOV looks at the value of individual orders, which is short-term and misses how long a customer stays, while purchase frequency measures how often purchases occur without accounting for the money those purchases bring in. The LTV to CAC ratio can show efficiency of spend, but the actual total value generated from the campaign’s customers is best represented by the total LTV. If you want to assess profitability more precisely, you’d compare that total LTV to the cost of the campaign, but total LTV serves as the fundamental measure of ROI for completed campaigns.