methodology-and-thresholds.md
Methodology & Diagnostic Thresholds
Evaluate enterprise LinkedIn campaign performance using four quantitative tests. A campaign is classified as Healthy & Scalable only if it satisfies all four conditions.
Test 1: Account Coverage & Reach Depth
- Healthy Threshold: At least 60% of total target accounts in the designated ABM list receive at least one impression during the campaign evaluation window.
- Critical Threshold: Less than 30% of target accounts are reached while average frequency per persona climbs, indicating budget concentration on a narrow subset.
Test 2: Audience Saturation & Frequency
- Healthy Threshold: Average exposure frequency remains balanced alongside stable click-through rates.
- Critical Threshold: Average exposure frequency per persona exceeds 10 impressions within a 30-day window, accompanied by a drop in engagement rates of more than 25% and rising cost per target account reached.
Test 3: Form Factor Quality Ratio
- Healthy Threshold: Lead-to-opportunity conversion rate for native Lead Gen Forms reaches at least 40% of the conversion rate observed for website demo requests on matching audience segments.
- Critical Threshold: Native Lead Gen Form conversion to qualified opportunity drops below 20% of website demo request performance, indicating lead generation friction removal at the expense of buyer intent.
Test 4: CAC vs. Contract Value Sustainability
- Healthy Threshold: Media Cost per Acquired Customer (calculated as Cost per Opportunity divided by Opportunity-to-Win rate, plus creative production overhead) remains below 20% of Annual Contract Value (ACV) multiplied by gross margin, with payback achieved within 12 months.
- Critical Threshold: Media Cost per Acquired Customer exceeds 35% of gross-margin-adjusted ACV, or payback period exceeds 18 months.
Verdict Criteria
- Healthy & Scalable: Test 1 Passed + Test 2 Passed + Test 3 Passed + Test 4 Passed. Action: Maintain target criteria, test new creative variations, and scale budget incrementally.
- Audience/Quality Failure: Test 1 Failed OR Test 2 Failed OR Test 3 Failed OR Test 4 Failed. Action: Disable audience expansion, review form qualification criteria, and adjust frequency caps.
- Inconclusive Data: Account-level attribution untracked or evaluation window shorter than median sales cycle. Action: Suspend verdict and flag data collection requirements.