Most SMBs are optimizing for a number that doesn't mean what they think it does. ROAS — return on ad spend — has become the default success metric for paid media. But for local businesses and service companies, it's often measuring the wrong thing.
The problem isn't the math. It's attribution. When a customer sees your ad on Monday, Googles you on Wednesday, and books through your website on Friday — which channel gets credit? Most platforms claim the conversion. You're paying for the same customer twice, or more.
Customer Acquisition Cost (CAC) and Customer Lifetime Value (LTV) are more honest metrics. They account for multi-touch journeys, include all your costs, and connect ad spend to actual business outcomes.
For a plumber, one booked job that refers two neighbors is worth 3× what it looks like in the spreadsheet. For a café, the regulars who come in three times a week are your actual business model — not the tourists who found you on Instagram.
Use a 30-day attribution window. Assign 40% credit to the first touch (the awareness), 40% to the converting touch, and split the remaining 20% across any middle touches. This is rough, but it's more honest than last-click.
More importantly: track revenue per customer in your CRM or POS, not just per conversion event. If you're running Shopify or Square, we can pull this automatically. Most platforms can't see past the click.