ROAS vs. Profitable Customer Acquisition
In advertising, there's a lot of focus on improving your return on ad spend (or ROAS), and while ROAS can be a good indicator at times, it's not the end-all-be-all that many people make it out to be.
In fact, using ROAS as your primary and only indicator of success could drive business straight into the ground.
But if maximizing ROAS isn't our goal, then how do we perfect our customer acquisition strategy at Sunlight Digital?
Here's our secret: We spend MORE per customer acquisition, not less.
When ROAS Should Be The Main Success Metric
If your business is made up of only one product or service that a client will over ever buy once in their lifetime, then ROAS will be a crucial metric for your social advertising campaigns.
But what if you have multiple products?
Or if you have a business where your customers buy from you repeatedly?
Then you need to be looking at metrics outside of ROAS in order to ensure your campaigns are successful.
Customer Acquisition Strategy Without ROAS
If you have a business where people can buy more than one product or more than one time, you want to start taking other metrics into consideration.
For instance, do you know the lifetime value of your clients?
If you sell a product for $30 and your average customer purchases 6 times more in a year, then the average annual value for that customer is $180.
In a simple example like that, you might want to consider spending more upfront to acquire a customer.
Want to find out why it works so well? Watch the video and find out!
In today's digital age, a one-size-fits-all marketing strategy simply won't cut it.
To stay ahead of the competition and reach your audience effectively, you need to leverage the different stages of the customer journey with a multi-channel approach.
It's not just about reaching more people; it's about reaching the right people, at the right time, on the right channels with a message that resonates so you move people along the customer journey quickly and effectively.
If you are ready to revolutionize your marketing strategy and make a lasting impact on your target audience join our 3 Pillars Masterclass.
Gain the knowledge and tools needed to craft compelling brand narratives, create engaging content, and nurture meaningful relationships.
Click here to sign up for our 3 Pillars Masterclass: https://3pillarsmasterclass.sunlight.digital/3-pillars-masterclass
