we set the following ROAS goals
Posted: Tue Jan 07, 2025 8:13 am
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.
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.