For a while, Return on Ad Spend (ROAS) has been used to track and ensure the effectiveness of ad campaigns. However, in today’s competitive market, increasing ROAS has to be the main agenda beyond tracking.
Businesses have been using ROAS as a go-to metric to measure the profitability of digital marketing campaigns, impacting the overall success of a business. Due to high competition, rising ad costs, and rapidly changing customer behavior, it has become more challenging for businesses to optimize their ROAS.
While setting clear campaign objectives is essential, the work doesn’t end there. Modern marketers need to focus on maximizing ROAS for sustain long-term growth. Here are five steps that you can follow to significantly boost your ROAS.
Focus on Enhancing Customer Retention
While acquiring new customers is essential, focusing on retention can prevent the costly cycle of replacing churned customers. Effective retention strategies include offering loyalty programs to reward frequent purchases, personalizing communications for added value, and creating exclusive perks for VIP customers. Referral programs with attractive incentives can help you turn loyal customers into advocates, boosting long-term brand loyalty and growth.
For instance, by.U Ucoins, Telkomsel's digital currency for its by.U service, offers a unique way to boost customer retention. Customers earn Ucoins for recharges, package purchases, and app interactions. These Ucoins can be redeemed for benefits like discounts, free data packages, or exclusive partner offers, creating a sense of value and rewarding continued engagement. By integrating gamification and tangible rewards, By.U effectively retains customers and strengthens brand loyalty.
Apart from enhancing customer retention, you need to understand the long-term value of each customer to maximize Customer Lifetime Value (CLV). CLV projects the total revenue a customer will bring throughout their relationship with your brand, helping you see beyond initial ROAS. For businesses with repeat purchases or subscriptions, it may be worth investing more in customer acquisition. However, you still need to hold on to solid strategies for customer retention in the long run.
Collect Data From Owned Channels To Boost Hyper-Targeting
Precise targeting is key to reducing costs while maximizing returns. By focusing on first-party data collected directly through owned channels like websites, apps, or email, you can create personalized customer experiences. Additionally, encouraging customers to share data directly to you, such as preferences and feedback, provides valuable insights.
Global brands often leverage gamification and rewards programs to gather data and tailor customer journeys effectively, boosting loyalty and engagement while increasing ROAS. By analyzing shopping behavior, purchase history, and on-site search data, you can create personalized offers that resonate with individual customers.
From its 9.9 Super Shopping Day, Shopee demonstrates the power of reviewing ongoing campaign performance for better future results. Merchants found that posting ads on Shopee’s search page boosted visibility and sales, especially for trending items like gadgets and fashion. For instance, promoting red sweaters during the campaign period resulted in increased search queries. By analyzing metrics like Click-Through Rate (CTR) and stock-related feedback, sellers adjusted their inventory and refined strategies for future campaigns, ensuring they were well-prepared to meet high demand effectively.
Beyond personalization, this data also powers advanced strategies like lookalike audience targeting and retargeting.
Match Your Ad Strategies with Channel-Specific Customer Journey
Utilizing multiple channels is essential, but success requires aligning strategies with channel-specific performance metrics—there’s no universal approach. Leading brands adopt a multi-channel strategy that harnesses each platform’s unique strengths across different stages of the customer journey. Begin by analyzing each channel’s role in the purchasing process, allocating budgets based on user behavior and intent. Customize ad creatives to fit platform-specific formats, and rely on real-time insights to refine campaigns.
For instance, ZALORA empowers its brand partners to achieve exceptional results through its ZALORA Advertising Platform (ZAP). By integrating on-site banners, CRM campaigns (newsletters and push notifications), and social ads, ZALORA helps brands create personalized touch points across the customer journey. Additionally, ZALORA’s sponsored products tool allows brands like Nike to feature their products at the top of search results, achieving up to 380% ROAS.
Optimize Personalized Content with Top-Notch Creatives
To maximize the impact of personalized content, leveraging high-quality creatives is essential. Continuously refine your visuals, messaging, and CTAs by running A/B tests to determine what resonates most with your audience. Experiment with different formats, such as product photos, lifestyle visuals, or videos, while tailoring headlines and copy to match your target demographics. Optimize CTAs by testing various placements, colors, and phrases to boost engagement. By aligning personalized content with superior creatives, you can enhance campaign performance and improve ROAS.
Utilize Website to Boost Conversions
Businesses often overlook the importance of optimizing their websites, even though it’s a critical factor in driving conversions. A high-converting landing page requires concise messaging, a strong call to action, and a visually appealing design. Fast load times and mobile responsiveness are also non-negotiable for delivering a seamless user experience. Additionally, aligning landing page content with ad messaging and including trust-building elements like testimonials is crucial. Regular A/B testing and incorporating directional cues or contrasting colors can guide users to take action, improving overall performance.
Ready to see your ROAS soar?
By focusing on the five strategies above, you can not only optimize your ad spend but also achieve meaningful connections with your audience. A data-driven approach allows you to identify what works best, adapt quickly, and eliminate wasteful spending, ensuring every campaign is impactful.
Take your marketing strategy to the next level with INDICO Engage. With Engage, you gain access to a comprehensive, data-driven platform that simplifies campaign management and delivers unmatched precision. By harnessing the power of advanced analytics and telco-driven insights, Engage ensures your marketing efforts are targeted, impactful, and cost-efficient.
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