ROAS Vs. Contribution Margin

Answer

Karl O'Brien explains 'Profit First' e-commerce, focusing on finding hidden cash cows and why contribution margin is a superior metric to simple ROAS.

Source: STOP Losing Money: How to Implement Profit First — Karl O'Brien | How To Find Your Hidden Cash Cows, What “Profit First” Means, How To Use Contribution Margin, Why Discounting Harms LTV, And Why Acquiring Customers For Retention Is Key (#450) on Ecommerce Coffee Break.

Top episodes

1. 1. STOP Losing Money: How to Implement Profit First — Karl O'Brien | How To Find Your Hidden Cash Cows, What “Profit First” Means, How To Use Contribution Margin, Why Discounting Harms LTV, And Why Acquiring Customers For Retention Is Key (#450)

   Ecommerce Coffee Break

   Karl O'Brien explains 'Profit First' e-commerce, focusing on finding hidden cash cows and why contribution margin is a superior metric to simple ROAS.

2. 2. Why Your ROAS Target Is Killing Your Business (And How to Fix It)

   The Bottom Line: Ecommerce Tactics for Profitable Growth

   A deep dive into why focusing exclusively on ROAS targets can be detrimental to an ecommerce business and how to align metrics with your actual financial model.

3. 3. Forecasting Series Part 2: How to create and analyse a forecast

   The Bottom Line: Ecommerce Tactics for Profitable Growth

   Part of a series on forecasting, this episode details how to analyze SKU-level performance using both ROAS and contribution margin metrics.

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