Return on advertising expenses

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Return on ad spend (ROAS) measures the profitability of your paid advertising campaigns. It is shown as the ratio of revenue to expenses. If your ROAS is less than one, your advertising expenses exceed your income.

How to calculate the return on advertising expenses:

ROAS = Доход от рекламы / Затраты на рекламу х 100
ROAS helps you understand whether you need to cut or optimize your advertising costs, or whether you can invest more.

Morrell comments: “ROAS is the most important metric for our young and fast-growing company… The only thing that gives us confidence in the long-term sustainability of our model is a positive return on ad spend in the near term.”

Pro tip: Looking at ROAS in conjunction with other kazakhstan phone number list metrics can give you a clearer picture of profitability. To see how ROAS contributes to overall business growth, track it alongside a metric like profit margin. Morrell says, “A business with high margins can get a much lower return on ad spend and still be more profitable than a business with excellent margins and very low margins.”

Email Engagement Rate
Email engagement rate tracks how often people open emails, click on links in them, and make purchases. This metric measures the success of email marketing campaigns and indicates the next steps needed to achieve even greater engagement.

This e-commerce KPI is a key metric for Adventure Cats. “We promote the store in our monthly newsletter, so we track opens, clicks, and sales. Mailchimp gives us data on how individual newsletters impact product sales,” Moss says.

Tracking overall engagement rates helps measure the success of email campaigns. However, it’s also helpful to track open rates, email conversion rates, and click-through rates separately. Each of these will indicate a step you need to take to improve your emails. For example, if your open rates are low, you might want to A/B test multiple subject lines to understand your audience’s interests.

Pro tip: Study the emails with the highest engagement rates. What made them successful? To identify a pattern, analyze the sending time, the length of the subject line, the communication style, and the topics covered in the email.

Social Media Engagement Level
Social media engagement refers to likes, comments, clicks, and other actions that users take with content. High levels of social media engagement help increase brand awareness. Reposts are especially important here, as they can drive additional traffic to your site. Shoppable posts, like those on Instagram, also help increase conversion.

Whether social media engagement is one of your top eCommerce KPIs depends on how active you are on social platforms. Adventure Cats, for example, is very active on social media. Instagram and Facebook are their main drivers, and the company closely tracks engagement.

Pro tip: Check if the posts with the highest engagement are promoting products with high sales. Is there a correlation or not? This will help determine the connection between social activity and sales. If high engagement is not leading to sales, you need to make it easier to buy on social media by making the appropriate settings on the platform. Social commerce platforms like Curalate can help with this.

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Monitor your eCommerce KPIs with a dashboard
Once you’ve defined your eCommerce KPIs, make them visible to your team in real time with an eCommerce dashboard. Everyone can easily view current orders, outstanding requests, top-selling items, and more. This visibility helps with decision making and shows teams where to focus their time and resources. To connect remote or distributed teams, share the dashboard on Slack or use a shareable link.