The decision
A marketplace runs two campaigns. A yields 800 orders and 200 returns, B yields 600 orders and 30 returns. Every retained order contributes ₹350 before advertising and each returned order incurs ₹120 in handling. Campaign spend is ₹1 lakh each.
Which campaign should get the next budget test?
Worked solution
Reveal the visual and solution
- Align order and return windows and subtract refunds before calculating retained contribution. A retains 600 orders and B retains 570.
- A earns 600 × ₹350 − 200 × ₹120 − ₹1 lakh = ₹86,000. B earns 570 × ₹350 − 30 × ₹120 − ₹1 lakh = ₹95,900.
- Test a small reallocation toward B, keeping product and customer mix visible. The average result does not establish the next rupee’s return.