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Know Your True ROAS with Closed Loop Measurement

It’s a question that every company needs to answer- how effective is your marketing strategy? 

Successful campaigns lead to increased sales. However, measurement methods like examining ROAS and in-store sales data won’t give you the whole picture. To untangle the exact relationship between sales and advertising, you need to implement closed-loop attribution. 

If that sounds like jargon, don’t worry. In this post, we’re going to break down everything you need to know. 

Return on Ad Spend (ROAS)

Return on advertising spend, or ROAS, is a crucial starting metric for most companies.

The calculation is simple: ROAS = (revenue) / (ad spend). 

If you spend $100 on marketing and sell $400 worth of products, your ROAS is $4 ($400/$100). Calculating the ROAS for your campaigns is an excellent start if you want to gauge the campaigns’ impact. However, you won’t be able to figure out many specifics. 

For example, if you sell football jerseys for the local team, a burst in sales could be a response to your ad campaign. Or, the increased sales could be because the team won their last game. If you’re only looking at ROAS, it’s impossible to figure out what’s really driving your sales. 

What is Closed-Loop Attribution? Why Should You Use it?

Closed-loop attribution is a way for marketers to track the effectiveness of their campaigns by looking at the entire customer journey. Did the customer see a video on your app and then make a purchase? Were they lured to your page by a banner on another site? These customers are indistinguishable if you only look at ROAS. Using closed-loop attribution methods, you can figure out how specific ads affect revenue. 

Closed-Loop Measurement: Your True ROAS

Closed-loop attribution works best if you have a wealth of customer data. For instance, if you have a marketing department and a call center, marketing data for each call should be displayed alongside final sales data. Did sending your warm leads an email blast before calling result in an increased conversion rate? 

You can also use companies like Klover to help with your closed-loop attribution goals. Klover has access to users’ banking details and transaction history. This information is reliable and verifiable, coming straight from the source.

Not only is that great for your company, because you’ll be able to see how much customers spend on your brand, but it’s also useful for your customers because closed-loop attribution improves the user experience. The more you know about your customers, the easier it will be to interact with them. You can send a fun message on International Dog Day because you know they spend money on Dog.com. 

Close the Loop with Klover

From learning about your product to making a purchase, the customer journey is a loop. Klover helps companies improve the process by tying media exposure to actual transactions. We can give you insights into factors like ROAS, visit frequency, and more.

Klover relies on zero-party data, or data that’s been provided willingly. This means that when you work with Klover, you know the data you’re receiving is transparent and ethically sourced. You get access to valuable information and you don’t have to worry about consumer privacy concerns. 


Close the loop on knowing if your ad dollars worked by partnering with Klover today.

Josh Lamb
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