My campaigns are not reaching my target ROAS. What should I do?
If your marketing campaigns are not currently reaching your target ROAS, you can do plenty of analysis to find out why you may not be converting as much as you were aiming for.
View your current conversion rate / return on ad spend (ROAS) from an analytical point of view. It is providing you with useful data and telling you that there are areas where you can improve.
Firstly, you should check that everything is set up and working from a technical point of view. E.g. check with Simprosys support that your ads are all set up correctly and working as expected. Also you can check with Shopify support to make sure you are having no technical issues on your site and people are able to view everything without glitches.
Then once you have cleared any possible technical set up issues, you can focus on what you can do to improve your conversion rate.
The main one is to continue signing suppliers. You cannot force unpopular brands onto a market so by continuously signing new suppliers, you are increasing your chances of finding the most popular brands and products.
Secondly, your target ROAS may be be too high which can lead to poor campaign performance. Test reducing your target ROAS and remember the rule of 20 and 7. Only adjust target ROAS by only 20% at a time, then leave for at least 7 days to test the change. You can reduce until you are around your break-even ROAS. Then when your campaign starts hitting your ROAS goal, you can gradually increase your target ROAS again.
Thirdly, do a competitive analysis to find out why a customer would shop elsewhere instead of from your website. Are you pricing correctly? Have you got a free gift or another value incentive that would make a customer choose you over somewhere else?
Thirdly, do a competitive analysis to find out why a customer would shop elsewhere instead of from your website. Are you pricing correctly? Have you got a free gift or another value incentive that would make a customer choose you over somewhere else?
Also, consider how long you have been running your ads for. You will allow time to be able to attain lots of data for your Google account to optimise with. Once you start to receive regular sales, this will be providing your Google account with valuable data to use and find similar people to convert again and again.