Why we love it
ROAs is grossly misunderstood - do you really think that you should be comparing it 1-1 with time periods?
Should it be applied to returning customers spend too?
Why does Shopify show a return customer rate in orders rather than percentage of revenue?
A dollar spent on advertising today might not be realized for up to 45 days.
Yet we only take ROAS numbers on a weekly or monthly report and by that point we've increased our ad spend and budget.
People keep saying look at the data, most people don't know how to read it, let alone understand it.
This sums up ecommerce metrics and KPIs and those that are tasked with delivering them.
There is a mismatch between what people think they should be doing based on "data" and what data people are using to make decisions.
In ecommerce we're at a split between people that can read and understand data v. those that say they know how to read and understand data.
With any KPI that you're measuring, you need to ask the "why".
Why does this number matter?
Why are we relying on this KPI?
What we'd love to know more about
What role tools have taken to try to cover up for this lack of knowledge?
Where is the gap in getting educated around data and strategy?
What are a few steps people can take to better understand how KPIs are caculated?