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I was on a call Thursday morning with a company that wanted help running their Google Ads.

I asked them a simple question:

"What's your number one goal?"

Without hesitation, they replied "Lower our CAC."

Their current customer acquisition cost is about $25… so I asked my next question: "What's your target CAC?"

They paused for a second and then said "As low as possible."

I hear this all the time.

And every time I do, I know we're asking the wrong question.

A lower CAC isn't the goal. A profitable CAC is.

So I dug a little deeper and asked, "What's the biggest constraint in the business today? If you could solve one thing, what would move the needle the most?"

Their answer wasn’t a surprise to us. "Honestly, it isn't CAC. It's LTV."

And that's exactly what Deodato helped a subscription DTC nutrition brand work through.

They jumped in for a quick audit, and every channel got its own CAC ceiling based on the actual lifetime value of the customers it produced, not what the ad platform reported.

Then they uncovered another problem.

The brand was running across 10+ marketing channels.

Meta said it drove the sale.

Google agreed.

TikTok wanted credit too.

When Deodato audited performance across every source, they discovered that 20–25% of reported conversions overlapped.

In other words...

Every platform was taking victory laps for the same customer.

Imagine increasing spend because one platform's ROAS looked incredible—when in reality you were just paying three different platforms to claim the same conversion.

Only after rebuilding reporting around a single source of truth did they start moving budget.

The payoff?

📈 32% YoY growth in new orders during the first four months. 54% growth during Black Friday/Cyber Monday and 29% growth the following January.

Not because they found a magical new channel.

Because they finally knew what a customer was actually worth.

The Hack

Most brands optimize for ROAS.

The best brands optimize for customer value.

Your CAC target shouldn't come from your dashboard.

It should come from your LTV model, which is a function of your margin across products, subscription, etc.

Everything else is just an educated guess.

We’ve done this CAC/LTV exercise repeatedly throughout our partnerships with Ka’Chava, Rent the Runway, Fora, Cipriani, Levain Bakery, Ergobaby, and many many more. Set a meeting (link) and our best people at Deodato will review your channels, attribution, and business. Let’s call it a free audit.

👉 Want to know if your CAC targets are too high (or too low)? Chat with the team.

That’s it for this week!​

Thanks for being a part of my journey :)

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