They could ultimately spend a lot on ads and discounts, only to attract customers who will never convert at full price — because they were deal-seekers, not value-seekers. Deal-seekers are notoriously fickle and often lack brand loyalty. They typically aren’t worth acquiring, and definitely not on a paid social platform where you’re taking on acquisition costs. Tracking ROAS alone won’t capture the resulting LTV and profitability issues, though, as this example from a real company
mask LTV decline. Once upon a time, my agency had a client in the consumer namibia number screening packaged goods space with what I lovingly call “Bed Bath & Beyond syndrome.” Their marketing team always ran coupons and flash sales, trying to leverage that buyer’s FOMO. As a consumer, you were expected to buy with a coupon. This can work. In the early days of Bed Bath & Beyond, the company’s giant blue coupon was cheaper to produce than a catalog — and it lured people into the store, where strategic merchandising often got them to buy more than they originally intended. In 2020, though, even Bed Bath & Beyond began moving away from the constant-discount strategy.
shows. 2. Case study: ROAS can
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