Why ROAS isn’t Enough: The Importance of Acquiring Profitable Customers

The ROAS that we can attribute to Facebook, or any marketing channel must be viewed through the lens of what touch points that channel had in the journey. We have to also accept that no channel exists by itself, so the credit for every single transaction should be given to multiple channels.

Rather than trying to solve the unsolvable problem of how much credit every channel gets in order to scale our business, we need to stop trying to appease the ego of the marketer by measuring return on ad spend as a key performance indicator.

The way to scale a business is to ultimately acquire future cash flow at a profit, by prioritizing the acquisition of profitable customer journeys. When we acquire customers, even at breakeven or less, who will on average purchase more than once, we access future revenue. If this future revenue comes in at a profit over operating costs, then, as that future revenue grows, we can invest more in the amplification of the acquisition of these profitable customer journeys.

It’s that simple, everything else is a liability!

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