The 5 Critical Connections to Improve Return on Ad Spend (ROAS)

The Critical Connections of eCommerce success

Improve Return on Ad Spend (ROAS)

The 5 Critical Connections of eCommerce success



Improve Return on Ad Spend (ROAS)

Nearly every marketer looks at the return on ad spend (ROAS) of their campaigns as the overall barometer for success. Marketers

typically focus on A/B testing to find the best subject lines; perfecting bidding algorithms of PPC campaigns and making sure

retargeting campaigns are presenting relevant products. However, there are some unexpected factors behind why your ROAS may be

lower than expected.

These five critical connections are just as important in ensuring the success and effectiveness of yourmarketing campaigns.

1. ProductInventory

2. CompetitivePricing & Delivery

Terms3. Landing

Pages4. Marketing

Spend5. Checkout

Process


The Critical Connections to Improve Return on Ad Spend (ROAS)

1. Product Inventory

How can you leverage product inventory data?The first things a marketer typically looks at when faced

with low ROAS on a particular campaign are broken links,

poor creative, or perhaps a missing call-to-action. These

are legitimate reasons, but it’s a siloed view that only

looks at marketing-attributed causes. By looking across

departments to other areas like product inventory, you

may find that conversions are low simply because there is

limited stock available. Metrics like views availability—the

percent of product page views when there is sufficient

coverage of stock—can provide a good alternative

perspective for why campaigns aren’t performing.

What are other retailers doing with product inventory data?Nearly $300,000 was identified in lost opportunity on

traffic from paid search keywords that were sending

customers to items that were out of stock. By connecting

inventory data with PPC keyword cost and click

information, one retailer was able to identify keywords

that were underperforming because of this reason.

DynamicAction was able to identify the issue

immediately, which allowed them to pause those

keywords until additional inventory was available.



2. Competitive Pricing & Delivery Terms

How can you leverage competitive pricing and delivery terms data?How is your pricing compared to competitors? If it’s

higher, consumers may be “window shopping” on your

site and purchasing elsewhere. Separately, a choice of

delivery terms (e.g. 24-hour, same-day, free shipping, etc.)

is becoming the new standard for many retailers.

Maintaining a constant handle on what retailers in your

competitive set are offering customers may be the

difference between a successful campaign with high

ROAS or a low performing campaign.

What are other retailers doing with competitive pricing and delivery terms data?At one luxury retailer, marketing was promoting a

certain line of products for the season. Using

DynamicAction, they were alerted to the fact that these

products were priced high compared to

competitors—in some cases by as much as $1,000.

Even though they were offering a free shipping

promotion the price disparity was impacting the

performance of the campaign. Adjusting prices to be

more in line with other retailers, they managed to

improve the sales of these products and improved the

ROAS for the campaign as well.



3. Landing Pages

How can you leverage landing page data?At any given time, a retailer may have hundreds of

campaigns running between PPC, display, retargeting,

email, social and other channels. Knowing whether any one

of these campaigns is directing people to the wrong landing

page or error page is a daunting task. With the right tools

that can alert you to broken links or misdirected traffic, you

can avoid spending time digging into campaign

performance and immediately fix any issues to recoup

potential revenue losses.

What are other retailers doing with landing page data?A retailer using DynamicAction was able to connect their

PPC, web analytics and product data to discover that a

number of keywords were resulting in a high bounce

rate and that this bounce rate was costing them tens of

thousands in potential revenue from sales of those

products. Based on the recommendation from

DynamicAction, they immediately paused those

keywords and went in to their site to optimize the

landing pages.



4. Marketing Spend

How can you leverage marketing spend data?Are you spending too much on campaigns where you’re

actually losing money on the product being sold? The

conversion rate is just one element of understanding

campaign performance, but in order to get a true picture

of ROAS, you need to have visibility into shipping costs,

orders and other factors that may be detracting from your

profit potential. The math to calculate ROAS from all of

these components can be complicated, but the right

application can help track these costs.

What are other retailers doing with marketing spend data?Within the first week of using DynamicAction, one

retailer found they had a low margin and low ROAS on a

number of products they were promoting—in some

cases the campaign costs were too high; in others, free

shipping was diminishing the margin too much.

Through the application, they were able to get the exact

products impacted and revisited their campaigns to

adjust spend and free shipping thresholds.



5. Checkout Process

How can you leverage checkout process data?Accounting for every factor that can go wrong along the

checkout process path is impossible—from broken links

to fraud detection to invalid promotion codes. You could

have an amazing campaign, but if customers simply can’t

make a purchase due to technical issues, your ROAS may

suffer. It could be a full time job to try to maintain all of

these areas, but there are tools that can monitor for any

performance anomalies or outliers to avoid losing

potential sales and risk damaging customer satisfaction.

What are other retailers doing with checkout process data?DynamicAction identified a website issue that was

impacting one retailer’s campaign performance. They

found that hundreds of customers were clicking through

an email campaign only to receive error messages when

entering a promotion code upon checkout. They were

able to fix the site issue in time to salvage their

ROAS—and contact the customers impacted to invite

them back to purchase.


About DynamicAction

DynamicAction from eCommera helps forward-looking retailers and brands drive every last dollar of profit from their ecommerce

business.

This first-of-its-kind Decision Intelligent Commerce application connects and analyzes product and customer data across a retailer’s

organization. Unlike any reporting or analytics tools to date, DynamicAction tells you exactly what’s impacting profit, recommends

actions to take, and ranks them by how much they’re worth to your business.

eCommera is based in London, England and Redwood City, California. Find out how the leaders in retail are revolutionizing their

multichannel businesses at www.dynamicaction.com, @eCommera and http://www.linkedin.com/company/ecommera.

eCommera Limited., Wells Point, 79 Wells Street, 1st floor, London, W1T 3QN, United Kingdom, +44 0 20 3530 5800eCommera Inc., 812 Middlefield, Redwood City, CA 94062, United States +650 814 5476eCommera France, 11bis rue Volney, Paris, 75002, France, +33 0 1 74 90 04 03www.dynamicaction.com [email protected]

The 5 Critical Connections to Improve Return on Ad Spend (ROAS)

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