Kendall gives you a lot of metrics. This is a simple framework for which ones to watch and why, so you can grow without quietly eroding your margins. Steady monitoring and small adjustments matter more than any single number.
A campaign can post a strong ROAS while mostly re-engaging customers who would have bought anyway. Check the New Customer Ratio (in All Sources and Ads (PPC)) on every campaign to see how much of its revenue is genuinely new business, and use NC ROAS to judge how efficiently it acquires new customers. If a campaign is weak on NC ROAS, consider pausing it and moving the budget to campaigns that actually acquire new customers.
To force Meta and other ad platforms to target new customers, create and upload a list of your active customers (customers who have bought in the last 12 months) as an exclusion list.
Keep a regular eye on Sales, Blended ROAS, Ad Spend as a percentage of Sales, and Contribution Margin. Together these tell you whether growth is actually profitable, so a cash crunch doesn't catch you off guard. Set the cost inputs behind Contribution Margin (COGS, payment processing, and fulfillment and postage) in Store Settings.
Some metrics move before your sales and profit do.
First, Is you active customer base growing? Check the LTV | Active Customers charts. How are LTV Trends trending? If it’s flat or dropping then you need to focus on driving repeat purchases and increasing AOV.
Check KPI Trends to ensure that that your NCAC is a decreasing fraction of your 12-month LTV. You should aim for less than 25%, even lower is better. Your NCAC compared to NC AOV will give you a sense for how profitable each new customer is. Then, you’ll want to check how profitable your ad spend is: Compare the NC CPA of your biggest ad spending platform (probably Meta) to your LTV.
Finally, another leading indicator is your website traffic and conversion rate. Check KPI Trends to see how these are trending.
Still have questions? Reach out to [email protected].