What can you afford to pay for a new customer?
ROAS is part of the picture. Product margin, discounts, returns and what the customer does next determine what the business can actually afford.
FEDJA POROBIC / ACQUISITIONONE TOPIC. SEVERAL PERSPECTIVES.
Customer acquisition.
Buying more traffic is easy. Knowing what it does for the business is harder.
The ad account gives you numbers. Customers give you questions, objections and fairly clear signals about what needs to improve. I want to use both when deciding what deserves more money.
I write about creative, measurement and the cost of winning a new customer. Why the last click gets too much credit. Why being tired of your own ad can be a terrible reason to replace it. And why a recurring customer question should become a better ad, rather than another closed support ticket.
MY STARTING POINT
The questions I keep coming back to.
What does creative need to explain?
“Make it look good” is rarely enough of a brief. Which product question needs answering? Which objection needs addressing? Which reason to choose the product needs to be clearer?
What does the whole buying journey tell us?
The last ad a customer clicked did not necessarily do all the work. Understand the context before giving it all the credit and switching everything else off.
FEDJA’S JOURNAL / SELECTED
Read the perspectives.
Articles by Fedja Porobic.
Your ROAS does not pay the bills.
The ad account can look fantastic while the company has less money left. I want to start at the other end: what can a new customer actually cost?
READ ARTICLE
The customer was not at our last ten marketing meetings.
We have stared at the ad for weeks. The customer may have seen it just as the bus arrived.
READ ARTICLE
Stop giving the last click all the fucking credit.
A friend sparked the interest and a product post made the customer look closer. Two weeks later, the search ad arrived and collected the applause.
READ ARTICLE
Pause the ad if you like. Understand what you are switching off first.
Sorting by ROAS and pausing the red rows is easy. Understanding what the account actually needs is the job.
READ ARTICLE
The customer said it on Monday. What has happened since?
We can be quick to increase the ad budget and slow to solve a problem the customer has already explained. I think the second speed deserves much more attention.
READ ARTICLEPOROBIC GROUP / GROWTH SERVICES
How we work on it.
These are the decisions we work on when we run marketing and ecommerce.
02 / THE ENGINE
Creative Performance
We find out what customers need to understand before they buy. Then we make ads, test the ideas and build on what sells.
EXPLORE THE SERVICE01 / DIRECTIONP&L, forecasting & strategy
We work out what growth can cost and when you need the money back. That guides the budget and what we do first.
EXPLORE THE SERVICE