ROI up 32%, customer acquisition cost down 18% in our LVMH EMEA engagement
From strong ROAS and revenue but depleted cash to growth managed through unit economics: SellfScale and RGI delivered a 32% increase in ROI and an 18% reduction in CAC.
Situation
When we began working with LVMH’s EMEA operations, agency reports showed strong ROAS and revenue while cash was being depleted. Advertising dashboards did not explain how much profit remained after each sale.
Approach
Using SellfScale and the RGI methodology, we brought acquisition costs, net contribution margins and return rates into a single unit economics framework. We evaluated spending against its contribution to profit alongside the revenue it generated. We cut visibility spending that eroded margins and redirected the budget toward profitable segments with strong customer lifetime value (LTV) potential.
Result
Within the engagement, return on investment (ROI) increased by 32%, while customer acquisition cost (CAC) fell by 18%.
Takeaway
Profitable growth requires knowing what each sale contributes—and allocating investment accordingly.