The Long-Term Impact of ROAS in Email and SMS Marketing Strategy
Marketers look to ROAS to determine the effectiveness of their campaigns. But the benefits of ROAS should go beyond immediate impact and to the long-term.
Much of marketing is focusing on immediate results. But it pays to keep an eye on the long game, too. While short-term success is great and may indicate you’re on the right track, you also want to ensure your campaigns are built for long-term gains.
One key performance indicator (KPI) that can help you determine your campaigns’ short- and long-term success is return on advertising spend (ROAS).
Immediate returns on marketing spend often measure ROAS. But that only tells part of the story. A good or improving ROAS can help set you up for long-term gains when it comes to building brand loyalty, increasing customer lifetime value, and seeing more revenue.
Here are some key areas where improving your ROAS can pay off big time down the road.
Building trust and loyalty
A positive ROAS comes from having an effective marketing strategy. It sounds simple, but it’s much more challenging to execute in reality — plenty of marketers know that. However, when SMS messages and emails consistently deliver value and resonate with subscribers, that goes a long way toward building a solid connection with them.
Over time, this trust often translates into credibility in your brand and loyalty. Shoppers are more likely to think about your brand favorably. Trusting in your products and services means returning and buying more often, increasing customer lifetime value.
How do you work on building that trust? Personalization. Personalization, both email and SMS, at the center of your marketing strategy shows potential customers you understand their interests and want to deliver. That helps forge lasting relationships over the long term.
Improving lifetime customer value
Beyond just immediate sales, a positive ROAS shows your intended audience responds to your marketing messages. They like what you say and buy because of it — not despite it. You don’t want to take this for granted. So, it’s critical to find ways to continue to encourage shoppers to buy.
Every marketer knows that engaged and loyal customers tend to spend more over time, participate in loyalty programs, and engage with upsells and cross-sells. That increases their lifetime value to your brand and helps raise your bottom line.
Here’s another area where personalization makes a huge difference in boosting long-term customer value. Don’t ignore your most loyal customers. Instead, send them more personalized messages highlighting opportunities for them to use their loyalty points to buy, like in an abandoned cart message.
Building engagement for the future
With consumers, past behavior often indicates future behavior. That’s something marketers can dig into when creating email and SMS campaigns. Read through the data and see when your customers are more likely to engage; what’s driving them to take action?
These data-driven insights can tell you a lot about your subscribers and help you continue to craft the messaging that connects with them. We like to call this approach performative personalization. It’s using data to help optimize revenue-generating activities using personalization.
So, finding what works now can help you set your strategy moving forward. Rather than guessing and hoping messages land, you have a base to work with, and that’s a huge help in creating campaigns that continue to drive engagement in the future. The success of one campaign can lay the groundwork for the next.
Take a closer look at improving ROAS
Immediate results matter, but playing the long game is critical for future success. ROAS can be a helpful tool for measuring how your target audience responds to your brand’s email and SMS campaigns.
A positive ROAS sets the foundation for success, boosting customer trust and loyalty while increasing lifetime value. Personalization plays a starring role here, helping you connect with shoppers by using messages that resonate with them.
We’d love to help your brand improve its ROAS. At Zembula, we know how critical personalization is to reaching customers and driving action — and we have the tools to help you do it. Get in touch today, and one of our experts will show you how to drive more clicks and conversions with a personalization strategy for your email and SMS campaigns.
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