DTC POD: How The Best Brands Are Built What is break-even ROAS and how do you use it with regular ROAS?
- “When we're talking about break-even ROAS, the real importance comes into mind when you're comparing it to your actual return on ad spend.” @JayAtSwpely #DTCPOD
- “When the break-even ROAS number and the ROAS number are very close together, that means that you might have a better chance of profitability.” @JayAtSwpely #DTCPOD
- “Discounts can be really helpful for achieving ROAS goals. But be careful because they can also increase what you need to break even.” @jadesai #DTCPOD
- “Product customization or monogramming can help boost brand loyalty.” @jadesai94 #DTCPOD
- “A lightly discounted bundle of complementary products can boost your average order value.” @jadesai94 #DTCPOD
We Speak About:
- [00:57] Defining ROAS
- [02:34] How to calculate your break-even ROAS
- [04:34] The importance of discounts
- [06:14] Tips to maximize your ROAS and reach your break-even
ROAS doesn’t always paint the full picture, so make sure you check break even ROAS too
When building a business, there are many strategies to measure success.
The strategy discussed in this episode is break-even ROAS, which gives a business an idea of what their margins are and return on dollars spent.
To make money you have to spend money, and it is important for businesses to measure costs against return value to examine how to maximize profits.
Stay tuned as we discuss how to calculate discounts into your break-even ROAS, and other techniques to increase returns on dollars spent.
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