How to measure the effectiveness of e-commerce campaigns?
Although the first metric that comes to mind for e-commerce campaign effectiveness is ROAS (Return On Ad Spend), it's worth remembering that it's not the only correct or universal metric. Yes, it tells us how much revenue every złoty spent on campaigns generated, but revenue is not always the best reflection of effectiveness. A more comprehensive view of the data may lead you to insights such as:
a campaign generated high ROAS, but it was a clearance sale on your site — you sold products at a very low margin (campaign ROI, Return On Investment, was low), and some customers will only return when you offer similar prices,
a campaign generated high ROAS but was based on users who already added something to the cart (a remarketing campaign), so they had a higher likelihood of converting — it's hard to compare its results with a campaign targeting customers who don't yet know your brand,
a campaign generated low ROAS but brought loyal customers who signed up for your newsletter (which can be considered a micro-conversion) — you can later activate them practically for free via email.
Another factor is that ROAS will not be the best effectiveness indicator for every e-commerce campaign. For marketing activities to be effective, we have to align them with the level of the purchase funnel.
Campaigns aimed at building awareness will rarely be a success in revenue terms — judging them by ROAS is therefore not a great idea. However, this kind of activity, with well-prepared messaging and a clear value proposition, is a good lead-in to building a solid purchase funnel.
Another factor is that ROAS will not be the best effectiveness indicator for every e-commerce campaign. For marketing activities to be effective, we have to align them with the level of the purchase funnel.
Campaigns aimed at building awareness will rarely be a success in revenue terms — judging them by ROAS is therefore not a great idea. However, this kind of activity, with well-prepared messaging and a clear value proposition, is a good lead-in to building a solid purchase funnel.