Why ROAS is not the most important metric
By now, you know not to bother with vanity metrics such as likes or shares. You’re actively tracking the performance of your ads, but are you looking at the right data? While return on ad spend (ROAS) is an important metric to monitor and optimize for, it’s not the end-all metric you should pay attention to – especially if you have a low ROAS right now.
Here’s why other metrics also play a major role:
- Figure out where you’re losing leads
You might have bottlenecks from your ad to the site that are causing your low ROAS. If you do, the metrics will reveal them to you. For example, if you have a high click-through rate (CTR) from ads, you know your ads are doing a good job to grab attention. If you have a low add-to-cart rate, you know that your product pages are probably not compelling enough to get people to want them.
- Refine the cart process
If you have a low add-to-cart to checkout rate, then there’s a problem with your cart process. Maybe it’s too confusing and there are too many buttons. Maybe there are no trust badges or testimonials to help persuade people to purchase. That’s a bottleneck that you can address. - Streamline the checkout process
A low initiate checkout to purchase rate indicates another bottleneck that can be addressed because your checkout process is preventing them from purchasing. You could streamline your process by narrowing many steps down to simply one.
There are ways in which you can circumnavigate all of these bottleneck issues to improve the overall ROAS of your campaigns. When you’re ready to get rolling, you know which stats to look at!