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Payback Period

CAC Payback Periods should guide marketing decisions inside companies a lot more than they currently do.

At the micro level: If Channel X is breaking even in 6 months, while Channel Y is breaking even in 18 months, it's clear where spend should be allocated and scaled.

At the macro level: If Marketing as a function is breaking even in less than 12 months, then spend should be scaled aggressively. Where you scale spend within marketing should then drill down into channels and campaigns.

While some marketing activities can't be measured, looking at Payback Periods can unlock significant growth levers for marketing teams.

That's why in order to be able to make decisions at this level, the right data infrastructure needs to be created in order to measure Payback Periods at both the micro and macro levels.

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