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A subscription app · B2C · Thomas Petit client

Change what you report as user value when cash matters more than long-term LTV

Unknownanalytics-attributionfinancing

What they did

Client optimized toward predicted LTV, then realized cash flow mattered more and that different users maximize 3-month vs 5-year returns; switched the value sent to networks to maximize short-term payback.

In their words

Signal Engineering: Strategic Data Filtering for Better Ad Performance — Thomas Petit, Independent Consultant

Play from 1:13:16

Thomas Petit… the platform side? And in part, yes, and it's already what they're doing. But they've done as much as they could, and they've gone very, very far. The last piece, in my opinion, is on our side, because it's so unique, and because I don't want the platform to deal with my data the exact same way that they deal with the average of my sector, I want it to be the closest possible to my And sometimes, even my own internal goal, they change over time.

1:13:16

Thomas PetitI'll tell you one example. I have one particular case where we used to optimize towards predicted LTV, and then suddenly we realized that cash flow was more important, and we realized that it was not the same user who bring the maximum LTV/CAC or return after 5 years, than the one who bring it after 3 months. And we're like, "Okay, right now it's more important that we maximize short-term payback." All right, okay, let's change it, you know? And this is not something the platform is going to decide for me, like I have to decide this for myself,

1:13:48

Thomas Petitbut also because every configuration is a little bit unique. That said, I believe there will be AI and machine learning, but not on the platform side to decide, on my side. That could come from Amplitude or Mixpanel, that could come from RevenueCat, who says, "Look, we've got access to all your subscribers, and we've detected that there's 20% of those that are very low value, 20% of those that are extremely high value, and we're going to package …

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Tags: signal-engineering, payback, cash-flow