Ep 149: Why you should STOP Obsessing Over ROAS!
ROAS has been seen as a main KPI for e-commerce brands for as long as any of us can remember. In today’s episode, Sean and Jordan take a hard look at how much weight should actually be giving to this metric. Returning customer rate, LTV, and profitability all say much more about the health of your business than ROAS does. This conversation adds a ton of nuance to the topic of what good looks like for e-commerce owners in 2021 and beyond. Enjoy!
KEY TAKEAWAYS FROM THE EPISODE
ROAS is not the ultimate indication of long-term success.
ROAS can only give you the success measure of your marketing efforts.
Shift to focus on Customer Lifetime Value: Evaluate your Cost Per Acquisition (CPA) over Customer Lifetime Value (CLV).
Cash is king! Profits and cash flow are the lifeblood of a physical products business.
Focus on the long game with these KPIs: Year-over-year Revenue Growth, Overall Subscribers, CPA and CLV.
If you want to learn more about the eCommerce Growth Plan for your brand click here:
https://mindfulmarketing.co/products/full-growth-plan
If you've been paying attention and your brand is ready to GROW, apply now to be the one new brand we take on this month!
https://mindfulmarketing.co/apply
Want to join a network of founders and executives who know your unique challenges in scaling your E-com brand from 7 to 8 figures? Apply to join our Ecom Executives Mastermind here: https://Mindfulmarketing.co/mastermind
