Coupons can have diminishing returns over time; they quickly go from an exciting opportunity to a constant expectation. We suspected that in our client’s case, the discounts-for-everyone approach was limiting their ability to scale not only their ad campaigns but their entire business — so we set up a split test to find out. We offered four different versions of their hero product at four different price points: $90 (their initial offer) $95 $99 with a gift card $99 with no gift card For each price point, :
ROAS goals based on price point We ran the test at scale, and the results were nepal number screening interesting. While the $90 offer was the ROAS winner, the $99 offer with no gift card was the second-best performer and had the greatest chance of profitability. ROAS goals at scale - and the best performing price points. The $90 offer, which had the lowest gross profit margin offer, looked most promising based on raw ROAS — but it was closer to its break-even ROAS goal, and we thought the customers who spent $99 might be the higher-value customers. We waited, and after two weeks, we looked at the LTV on the new customers the campaign had attracted.
we set the following ROAS goals
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