Z-Talk: What is ROAS?

ROAS stands for return on ad spend. Some marketers use ROI, or return on investment, but the idea is similar. It’s how much you get from what you’re spending. And while the acronym might lead you to believe that it’s just for ads, it’s surely not!

What does ROAS have to do with email?

ROAS is an important part of your email marketing metrics. Just like any other channel in your marketing strategy, email has some spend associated with it. And while “ad spend” might seem like a bit of a misnomer, the money you spend on your email marketing is lumped into this. The return on this spend is the final value you’re looking for. The bigger the number the better!

Email historically has a very high return – between 3600% and 4200%! This makes it a great opportunity to try and supercharge your efforts. Even little tweaks can have a huge impact on that bottom line.

Why not track just revenue instead?

Revenue is important to track but doesn’t give you the full picture. Your revenue can be high but that doesn’t mean your spending is low! You have to spend money to make money, it’s true, but you have to do so in a way that’s scalable. The key is to keep spending reasonable and revenue high. That’s why tracking ROAS is a better way to determine success over just revenue improvements.

How to improve ROAS for email

The power of personalization is no secret around email marketing. It’s one of the best ways to improve ROAS of your email marketing campaigns. The problem is that it can be difficult and expensive to do. Zembula has found several ways to make it more effective and scalable from a cost perspective.

Our customers, like Forever 21, have reported 11x ROAS while using our solution. That’s huge!

Want to learn more about how ROAS impacts your email marketing strategy? Watch our latest Z talk!

Cheyenne Miner
Director of Marketing

Cheyenne is the Director of Marketing at Zembula where she gets to collaborate and coordinate with a team of marketing masterminds. On the weekends, you can find her in the backcountry of the Pacific Northwest, or not, because they don’t have cell towers out there.

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The Long-Term Impact of ROAS in Email and SMS Marketing Strategy

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. 

Click here to request a demo.

Liz Froment

Liz Froment is a content writer at Zembula. A graduate of University of Massachusetts at Amherst, Liz is a travel aficionado, Boston sports fan, and maple syrup connoisseur.

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3 Key Email Personalization Trends for 2024

It’s time to start looking ahead. As technology improves, marketers can’t always rely on what worked in the past to continue in the future. 

Sure, it may work ok. You’ll still see some clicks, conversions, and revenue. But standing out from the competition needs a more innovative approach — and you don’t want to wait until your numbers start dwindling to make a move. 

Instead, stay on the cutting edge. Look and see what’s coming around the corner and go all in. It starts with your email personalization strategy. We know personalization is no longer optional. It’s a must-have. 

So, to stand out, reach your customers, and generate more revenue, embrace these email personalization trends for 2024. 

Make hyper-personalization the standard

Generic personalization? That’s a thing of the past. Today’s consumers want every message they get from you to be personalized on a 1:1 level. If you don’t have systems in place to do that, you will get left behind.

Here’s the good news: hyper-personalization is easier than you think. With Zembula’s Smart Blocks™ and Smart Banners™, there’s a world of personalized email options at your fingertips. Send messages tailored to your reader’s interests and needs from top to bottom. 

From personalized shipment tracking messages to loyalty points updates and abandoned cart reminders, Smart Blocks™ and Smart Banners™ are ready to deploy, ensuring every email is hyper-personalized. With our dynamic content blocks, personalized emails featuring the reader’s names, location, and recommended products based on shopping history are easy to create. 

Harness the power of AI

Artificial Intelligence is no longer the stuff of science fiction — it’s here to stay. So, it’s time to use it. And no, we’re not talking about having AI write your emails. Instead, tap into AI for insights on consumer behavior and predictive analytics to improve your messages.

A data-driven approach, what we call performative personalization, helps marketers zero in on what’s actually moving the needle and what readers most respond to and want. That makes it much easier to craft copy and showcase products and services you know subscribers love. 

There’s no more guessing with our AI-powered Campaign Decision Engine. The Campaign Decision Engine runs through all the permutations and determines which messaging will most likely get clicked and generate revenue. And the best part? It’s automated. Your team doesn’t have to spend time tweaking code, creating duplicate campaigns, or manually sending out individual emails. 

Embrace dynamic content

It doesn’t matter how much content you churn out; if it’s not connecting with your readers, they’ll go elsewhere. So, it’s that much more important to find ways to build a relationship with your subscribers through every interaction throughout the customer journey. 

Personalization plays a huge role in bridging trust. The more your shoppers see you deliver the hyper-personalized messaging they want, the better. How do you ensure you can make it happen? Dynamic content.

It starts with Smart Blocks™ and Smart Banners™. These dynamic content blocks pull in personalized information, displaying tailored data for each one of your subscribers. You can also do a ton with dynamic content blocks, including making them move with personalized animation. That’s a great way to catch shoppers’ eyes and encourage more engagement. 

Let Zembula help you stand out in 2024

To stand out in 2024, you need to find an edge your competitors don’t have. Let email personalization guide your marketing strategy moving forward and get on the most important trends shaping email marketing, now and in the future. 

Going all in on personalized emails will help you connect with subscribers and improve your revenue. Sounds like a win-win, right? 

If you want to learn more about how Zembula can help improve your email marketing in 2024 (and beyond), get in touch. One of our email experts will learn about your business and show you how Zembula can improve your numbers. 

Request a demo today.

Liz Froment

Liz Froment is a content writer at Zembula. A graduate of University of Massachusetts at Amherst, Liz is a travel aficionado, Boston sports fan, and maple syrup connoisseur.

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How Forever 21 Used Smart Banners™ to Get 11x ROAS

Forever 21 is a global fast fashion retailer headquartered in Los Angeles, California. It was founded as one store in 1984; today, there are over 540 retail operations worldwide. The company focuses on delivering on-trend and high-style designs and basics at affordable prices, targeting fashionable consumers who care about a high-value customer experience.

Forever 21 values innovation. The company wants to expand access and convenience to customers across in-store, eCommerce, and other digital channels. Of course, email marketing plays a significant role in this strategy. 

They wanted to find a way to improve email by adding more personalization without adding more manual processes and complicated workflows for the marketing team. So, Forever 21 turned to Zembula for help.

Here’s what happened. 

The challenge: Increase ROAS and bump revenue 

Every brand wants to increase return on ad spend (ROAS) and revenue. But it’s a delicate balance to do so while still serving the customer and ensuring they’re getting the messages that matter to them.

Research shows that email marketing is a key channel for retail and eCommerce brands, helping build customer relationships and drive more return purchases.  

In addition, Forever 21 wanted to implement a solution that wouldn’t hamper its marketing team with extra manual tweaks and effort. The new approach to personalized email marketing had to deliver both measurable improvements and require little additional effort. 

The solution: Implement Zembula’s Smart Banners™ for revenue optimization

At Zembula, our approach centers around using personalization for revenue optimization. Adding personalization to every message — from triggered abandoned cart notifications to inventory alerts and shipping updates — helps connect with customers. 

It provides the 1:1 level of personalization consumers increasingly want and, using data-driven insights, helps create more clickable content. Driving more action and engagement helps improve conversions and revenue over the long term. And that increases the return on investment for email marketing strategies, exactly what Forever 21 hoped to achieve.

Forever 21 pulled from a pool of Smart Banners™ primarily focused on abandoned carts and browse options. These are generally higher-converting messages that can easily be personalized for customer name, shopping behavior, and history. Banners can also use personalized animation to feature moving product images.

Beyond offering a suite of personalization solutions in the form of Smart Banners™ and Smart Blocks™, Zembula can be up and running quickly. Implementation takes as little as six weeks, and the platform is fully automated, doing most of the heavy lifting for you.

The results: 11x ROAS

After using a pool of Smart Banners™, the team at Forever 21 saw a lift of 11x ROAS compared to the effectiveness of previous email campaigns.

Zembula’s AI-powered Campaign Decision Engine sorted through Forever 21’s data and displayed personalized Smart Banners™ according to their set parameters. This ensures every customer gets personalized messages in their inbox, building more trust in Forever 21’s email communications and making these emails must-open.

While most included abandoned cart or browse banners, the company also wanted to add real-time package tracking to help train readers to open promotional emails.

Learn more about Zembula’s Smart Banners™ 

Some marketing metrics are increasingly more important measures of success, and ROAS is one of them. Knowing if your emails are landing with subscribers and converting them to shoppers helps highlight the effectiveness of your strategy and where changes may be needed.

For Forever 21, implementing a personalization strategy focused on Smart Banners™ helped drive a significant boost in ROAS. If you want to do the same for your brand, we’d love to help. 

Get in touch today, and we’ll set you up with a demo.

Liz Froment

Liz Froment is a content writer at Zembula. A graduate of University of Massachusetts at Amherst, Liz is a travel aficionado, Boston sports fan, and maple syrup connoisseur.

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