Read the equation
Expresses the difference between customer lifetime value and acquisition cost relative to acquisition cost.
Its role in the build
The MADDIE Equation — Client Conversion Formula
Terms & definitions
| Term | Meaning in this source |
|---|---|
| M | Message score. In its component formula p_i denotes pain points and w_i emotional weight. |
| L | Lead value. In this component v_i is value of outcome i and p_i probability of outcome i. |
| CLV | Customer lifetime value. |
| R | Retention, labeled years. |
| CAC | Customer acquisition cost. |
| ROM | Return on marketing. |
How it works
Read ROM as the quantity being defined or updated by this relation.
Uses a remainder or modular operation, retaining the numeric representation used in the source.
Use this version’s variable definitions and update order. The same symbol may be assigned a different meaning in another build.
Assumptions & limits
CAC = Customer Acquisition Cost. No zero-cost convention or observed values are given.
Original context
Read the surrounding source passage
The MADDIE Equation — Client Conversion Formula: Expresses the difference between customer lifetime value and acquisition cost relative to acquisition cost.
Exact original notation
ROM = [(CLV − CAC) / CAC] × 100%
Related builds
Sources & provenance
ROM = [(CLV − CAC) / CAC] × 100%