A Data Driven Approach for ROI Marketing

A Data Driven Approach for Efficient Performance Marketing. Business Illustrations by StorySet

Discover data-driven strategies for performance marketing efficiency, focusing on optimizing ROAS across channels and customer personas for sustainable growth.

Many companies struggle to drive sustainable growth because their customer acquisition cost (CAC) is a lot higher than their customer lifetime value (LTV). This ratio of LTV to CAC is ROAS (or Return on Ad Spend). When their growth was VC funded, companies could let their CAC be several times their LTV. But in the current macro climate, a good ROAS (or Return on Ad Spend) is no longer a nice to have. It is existential.

Here are some ways to dive deeper into your ROAS data to identify opportunities for growth.

One of the most effective ways to optimize your marketing efforts is to break down ROAS by acquisition channel. By doing so, you can identify which channels are the most cost-effective and which ones are generating the highest LTV. For example, if your paid social media efforts are driving a lower ROAS than your paid search campaigns, you may want to shift more of your budget towards your paid search campaigns.

Another way to analyze ROAS at a granular level is to segment your data by customer persona. By doing so, you can identify which customer segments have the highest ROAS. For example, if you sell products in many categories, you may find that customers who buy from a particular category have a higher ROAS than those who buy from other categories. This information can help you adjust your marketing messaging and targeting to focus on the most valuable customer segments.

It is also important to analyze ROAS over time to identify trends and seasonalities. By doing so, you can identify which marketing efforts are sustainable and which ones may be producing short-term gains.

To truly supercharge your growth marketing efforts, you need to look at the ROAS at a segment level, where a segment is defined by a unique value of channel, customer persona, ad set, campaign, creative, landing page, and any other available attributes. Doing so frequently enables you to allocate your marketing budget to the most efficient segments.

The only challenge with this approach is implementing it in practice. Analyzing the ROAS data at a per-segment level, when there are tens of thousands of segments, is tedious and time consuming.

This is where BoostKPI comes in. We automate this process by sending you customized alerts, when the ROAS on any segment changes in a big way, along with the root cause behind the change. For example, did the CPM or the CPC change? Or were there sub-segments that were responsible for the change.

We have been helping growth marketers at many organizations like Musely and SimpliLearn achieve ROI-positive growth.