The conclusion here is that a scenario with a higher CPA, larger spend and lower ROAS can actually lead to a larger cash return when you factor in lifetime value and the incremental revenue generated from a larger pool of customers.
Of course there are cases where sales can be increased by keeping CPA at a similar level or even reducing it, this very much depends on how well your PPC is being optimised, this is really an example for scenario planning when your PPC is already firing on all cylinders!
These results can of course be further improved by increased average order value and conversion rate through a dedicated CRO programme!
The conclusion here is that a scenario with a higher CPA, larger spend and lower ROAS can actually lead to a larger cash return when you factor in lifetime value and the incremental revenue generated from a larger pool of customers.
Of course there are cases where sales can be increased by keeping CPA at a similar level or even reducing it, this very much depends on how well your PPC is being optimised, this is really an example for scenario planning when your PPC is already firing on all cylinders!
These results can of course be further improved by increased average order value and conversion rate through a dedicated CRO programme!