The Commercial Logic diagnostic

Is your marketing creating value, or consuming it?

Most companies never find out. The diagnostic settles it: what a customer truly costs to acquire, what that customer is worth, and whether the two add up. One CLV:CAC ratio, measured to a standard finance will accept.

See pricing and start From £1,200 · board-ready verdict
Or start free with Calibrate
The headline readIllustrative
CLV : CAC
0.53 : 1

Believed healthy. Measured 0.53:1, under the 1:1 break-even.

break-even
benchmark
01:13:15:1
Capital Burn Velocity £834,996 / yr
Two numbers: whether marketing pays, and how fast.
01 · The problem

Marketing speaks in activity. The CFO thinks in capital.

Leads, conversion rates, attribution, pipeline: all of it proves marketing was busy. None of it answers the only question capital cares about: what does a customer cost to acquire, and what does that customer return?

Marketing gets hired to fix, more leads, more pipeline, more demand, before anyone asks whether the fixing pays. So capital gets allocated on conviction, not evidence, with 20 to 40 percent of marketing's financial contribution riding on the guess.

Read why
Why the ratio misleadsThree structural errors
Wrong in the same direction
  • ACAC understatedThe fully-loaded cost of winning a customer is rarely counted.
  • BCLV overstatedRevenue stands in for gross margin.
  • CThe ratio unownedNo single function calculates or governs it.
Each error flatters the number. Together they hide the truth.
02 · What the diagnostic does

A marketing audit finance will actually accept.

No estimates, no guesswork. We measure the true cost of winning a customer and the real value they return, worked to a standard finance will sign off. So the answer holds up in the room where the budget is decided.

Administrator
alan@why-marketing.com
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Tool Admin
Business Profile Cost Inputs Pipeline & Revenue Customer Value Outputs
Business Profile

Start with the core business profile. It sets the commercial context every downstream calculation draws on.

The name of the client or business being assessed.
e.g. Acme Ltd
Company or trading name, if different.
e.g. Acme Technologies Ltd
Select the operating currency for this assessment.
£
$
03 · What you receive

A board-ready verdict, not a report.

Your CLV:CAC position against benchmark. Your true acquisition cost, net customer value, and payback period. And the short list of priorities that will move the ratio most. Nothing to interpret, everything to act on.

Synthesis
Customer acquisition is destroying value at the unit level.

Every new customer costs more to win than it returns over its discounted lifetime. Fix this before anything else.

CLV : CAC ratio
0.53 : 1
3:1 minimum for a sustainable model.
Capital Burn Velocity
£834,996 / yr
£69,583 / mo destroyed at this run-rate.
01
CAC

Blended CAC overstates true acquisition cost by 30.2%.

02
Returns

CLV:CAC is 0.53:1 against a 3:1 minimum; payback 56 months.

03
Attribution

Marketing claims 50.0% of pipeline; only 18.8% is verifiable.

04 · Capital Burn Velocity

The ratio tells you if. Burn Velocity tells you how fast.

A ratio is a verdict. It doesn't tell you how fast the damage is done. Capital Burn Velocity does: the pounds per month your acquisition engine is banking or burning.

It ends a familiar argument. Below break-even, "give it more budget to test and learn" just means destroying value faster.

Burn Velocity per month = (New Customer CAC − net CLV) × new customers per month
Read why
Capital Burn VelocityIllustrative
Destroying capital at this run-rate
£69,600 / mo

£835,000 a year, at the current acquisition pace.

DestructionMargin-of-safety shortfallAccumulation
01:1 break-even3:1 target5:1
Gap per customer
£20,875
Acquisition pace
3.3 / mo
CLV : CAC
0.53 : 1
Pivots on 1:1, where CLV equals CAC. Below it, capital is destroyed.
05 · The scenario planner

The findings are yours to work, not just to read.

Your diagnostic does not stop at a verdict. It hands you an online planner: flex the levers marketing and finance control, and the ratio, payback and capital position respond in front of you. It builds the case to take to finance, and it runs on our servers, never a spreadsheet to download and misread.

Commercial Logic
CLV:CAC Diagnostic · Scenario planner
Online · never downloadable
Scenario planner · Northwind Trading
Move the levers. Watch the capital.
The material findings from your diagnostic, live. Flex the levers and the ratio, payback and capital position respond. Your baseline is preserved.

The position, at your settings

CLV : CAC ratio
1.60 : 1
baseline 0.53:1 · ▲ 1.07
0break-even 1:1healthy 3:14+
Fully-loaded CAC
£8,900
−15% vs base
Net CLV
£14,200
+41% vs base
CAC payback
14 mo
was 56 mo
Capital Burn Velocity
£212,000/yr
capital created
Path to a 3:1 ratio

To reach 3:1 from here: CAC falls to £4,730 (47% lower), or net CLV rises to £26,700.

The levers

Acquisition spend−15%
£640,000 → £544,000 acquisition spend
New customers won+10%
60 → 66 customers
Gross margin+8 pts
52% → 60% gross margin
Average tenure+20%
3.0y → 3.6y (capped 5y)
Cost to serve−10%
£2,400 → £2,160 / customer
Reset to baseline
Compute happens server-side · nothing is downloadable · re-open any time from your link
06 · What happens next

The diagnostic tells you what is wrong. The advisory work fixes it.

A number on its own changes nothing. Where the diagnostic finds the problem, the repair follows in the order the ratio dictates, not the order of the loudest tactic in the room. Run it as a fixed-scope project, or as leadership on a mandate.

See the ways to work together
Start free · self-assessment

Not ready to commit? Get a free first read.

Calibrate is a ten-minute self-assessment. No cost, no login. It shows you roughly where your acquisition economics stand, and whether the full diagnostic is worth your time. Most who run it find it is.

The first question, answered

Know what a customer costs, and what they return.

One fixed fee. One board-ready verdict. Delivered, typically, in two to three weeks.

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