4 ways to leverage ROAS to triple lead generation

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businesses that don’t They may not have any future to invest in.

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Whether you are investing in your human resources or in critical technology, long term success always requires some outlay in the short term. This is true when it comes to marketing – you cannot market your product or service without investing in advertising. But if that investment isn’t turning into leads and conversions, you’re in trouble.

The “good” ROAS score is different for each company and campaign. If your statistic isn’t where you want to put it, you can leverage ROAS data to create targeted campaigns and personalized experiences.

It is important to identify and apply the most appropriate metrics based on business goals, and there is no one best practice or one-size-fits-all method.


However, smart use of return on ad spend (ROAS) data can triple lead generation, as I discovered when I joined Brightpearl to restructure marketing campaigns. Let’s take a look at some of the ways Brightpearl uses ROAS to improve campaigns and increase lead generation. The key is to determine what represents a healthy ROAS for your business so that you can adapt accordingly.

Use the right return metrics

Choosing the right return metric is paramount to calculate your ROAS. This will partly depend on your sales cycle.

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BrightPearl has a long sales cycle. On average this is two to three months, and sometimes up to six months, which means we don’t have tons of data on a monthly basis if we want to use new customer revenue data as a return metric. A company with a short sales cycle could use the revenue, but that doesn’t help us optimize our campaigns.

We chose to use the Sales Approved Opportunity (SAO) value instead. It usually takes us about a month to measure, so we can get more ROAS data at the same time. This is the final sales phase before a win, and it is in line with our company’s goal (to increase our recurring annual revenue), but takes less time to collect data.

By the SAO stage, we know which leads are of good quality – they have a budget, they fit well, and our software can meet their needs. We can use them to measure our campaign performance.

When you choose a return metric, you need to make sure it matches your company’s goal without putting an age in getting the data. It should also be measurable at the campaign level, as the purpose of using ROAS or other metrics is to optimize your campaigns.

accept that less is more

I have seen many companies fear missing out on opportunities, which leads them to advertise on all available channels instead of focusing resources on the most profitable areas.

Prospects usually do their research on multiple channels, so you can try to cover all possible touch points. In theory, this could generate more leads, but only if you have an unlimited marketing budget and human resources.

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