If a specific campaign does not break even in the short run, it will not be profitable in the long run if we factor in customer lifetime value by calculating the average customer longevity, average customer annual expenditure, and average gross margin, minus the average cost of customer acquisition and maintenance (discounted for the opportunity cost of money).

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Factoring in customer lifetime value (CLV) can reveal that a campaign that does not break even in the short run may still be profitable in the long run. CLV takes into account the total value a customer brings over their entire relationship with a company, not just the immediate return from a single campaign.

If a Specific Campaign Does Not Break Even in the Short