Most eCommerce businesses use a handful of pointers to determine and measure their success rates, one such metrics is return on ad spend (ROAS).
ROAS gives a deeper insight as to a specific campaign is paying off in financial terms or not. It tells you how much money you’re getting in return for what you have spent for the purpose of advertising. It works as a key element when evaluating how well your advertising campaigns performed.
Now talking about what’s a good ROAS, in order to keep costs in check, marketing professionals often use a target ROAS when planning campaigns. Advertising campaigns play a big role when it comes to brand awareness. Conclusively, these advertising campaigns prove beneficial in increasing sales.
Factors that could help you achieve 20X ROAS:
1.High converting website:
The factor that plays all the game is a good website. A whole lot of time, hard work and dedication put together from all the diverse angles are needed to achieve a good looking website.
Website is one of those things that you need to look over if you want to genuinely grow and achieve a good looking ROAS.
2. Great Products:
One needs to keep in mind that having a good product is a not the end thing, the way you are displaying it to the customers is a matter of optimum importance. Your customers need to genuinely fall in love with your products, so much so that they have turn back every time, only ‘to you’. In short, customers reorder rates need to increase.
Harsh but a truth, not all types niches are open to high returns, it depends upon the competition. There are some niches which are highly competitive and to acquire customers in them seems to be tough task.
Taking the example of beauty and skincare niche, which is highly competitive and to even attain a 3X ROAS is an uphill struggle.
4. Customer support:
As we say ‘last but certainly not the least’, is the customer support. If you are not giving the required treatment and importance to your customers there are fair chances of things getting out of hand and performance deterioration, which in some instances might even lead to severe consequences like shutting down of your business.
There are instances that we have witnessed, where good brands having impressive ROAS were dragged down due to bad customer reviews. So, one needs to be mindful that ROAS is not the end result rather your customers should be happy and be loyal to you at the end of the day.
These are some of the pointers that we have come across, which could lead to having an impressive ROAS like 20X.