Demand Gen Daily – Ep 46 – How to go From Single to Double Digit ROAS
In this episode of the Demand Gen Daily podcast, we discuss how e-commerce businesses can increase their return on ad spend (ROAS) from single to double digits. In the end, there is no single way to achieve this, and know that it is highly contextual to each business’s market. However, here are some broad rules that e-commerce businesses can use to increase their ROAS.
Here are four takeaways:
- The higher the ROAS, the faster you can scale your business. To scale e-commerce businesses, you need a high ROAS because it brings cash back quickly. Therefore, businesses should aim to achieve high ROAS before attempting to scale their business.
- Remarketing is critical for achieving high ROAS. Although remarketing has its limits, it is still the campaign that generally achieves the highest ROAS. Therefore, e-commerce businesses should create a solid remarketing funnel to achieve a higher ROAS.
- Email marketing can increase ROAS from 8x to 20x. E-commerce businesses should have a solid email marketing program in place that includes promotional emails, deals, and incentives to encourage customers to shop more. Businesses should aim to get all of their subscribers on their email list and send them promotional emails regularly.
- Email marketing is cheaper than other forms of advertising. E-commerce businesses can achieve much more scale by using email marketing, which is much cheaper than other forms of advertising. Email marketing also allows businesses to achieve higher ROAS because they have a database of customers who have already purchased from them and are likely to purchase again.
In conclusion, e-commerce businesses can achieve higher ROAS by using a combination of remarketing and email marketing. By having a solid remarketing funnel and a promotional email program, businesses can increase their ROAS from single to double digits, allowing them to scale their business faster.
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