As the advertiser, you control your target ROAS. Your target ROAS determines how much you pay ChaChing each time we bring you a conversion as well as how much payback ChaChing can offer shoppers as a reward for buying your products. For example, a target ROAS of 4 would mean that you would pay a cost per order (CPO) of 25% of the product's price when ChaChing brings you a conversion. ChaChing is then able to give almost all of that CPO back to the shopper. A target ROAS of 5 would mean that you would pay a CPO of only 20%, but then there would be less CPO to give back to the shopper.
You can increase your sales volume by decreasing your target ROAS, which then allows ChaChing to raise the size of the shopper’s incentive to purchase. Higher purchase incentives can increase your % win rate. You can also increase your target ROAS (up to 5) which can decrease volume of sales but can improve ROI (return on investment).
When you first onboard your e-commerce store to ChaChing, you'll be asked during set up to provide what your target ROAS is on Google. The number you enter becomes your default target ROAS on ChaChing. The highest target ROAS you can set on ChaChing is 6.667, which is equal to a CPO of 15%. However, to maximise sales and bring in new customers, opt for a lower target ROAS, as a higher CPO will mean a greater payback offered to our shoppers for buying your product.To make it easier for you to decide on a target ROAS to set for your products on ChaChing, below are some conversions from target ROAS to Cost per Order (as a percentage).
- A target ROAS of 6.667 results in a CPO of 15%.
- A target ROAS of 6 results in a CPO of 16.67%.
- A target ROAS of 5 results in a CPO of 20%.
- A target ROAS of 4 results in a CPO of 25%.
- A target ROAS of 3.3 results in a CPO of 30%.
- A target ROAS of 3 results in a CPO of 33.3%.
- A target ROAS of 2.5 results in a CPO of 40%.
- A target ROAS of 2 results in a CPO of 50%.
Remember: Changing your default target ROAS on ChaChing is easy. Just follow these steps:
- To edit overall campaign target ROAS, log into the ad platform, click the store account you'd like to change the default target ROAS for, and click the “Edit campaign ROAS” button at the top of the dashboard.
- Enter the new campaign target ROAS and decide if the new campaign ROAS should override the individually set CPOs/target ROAS’s or not.
- Then click "Update".
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