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Why Chasing ROAS Could Be Holding Your Brand Back
by Kyla Friel on Jan. 28, 2025
First up in our Growth Gems series, we talked to William Harris, CEO of Elumynt. By optimizing ads around profit instead of ROAS, William has helped over 13 businesses get acquired, with one selling for $800M, another selling to GoDaddy, and another that recently IPO'd.
At first glance, a business like Rogue Fitness could be deemed a commodity. Fitness equipment is relatively indistinguishable, with a sea of copycats and Amazon knockoffs.
But dig a little deeper, and it's clear that Rogue is doing some things to help them stand out and connect with their customers.
Where most ecommerce brands still haven’t figured out how to meet their customers on a local level, the nearly 20-year-old company has worked on building a community through virtual challenges and in-person events. This strategy has helped Rogue scale and, perhaps most importantly, sustain their business and reputation over an extended period.
Of course, even a business with a strong community following and online presence might be overlooking something — and there’s one glaring thing that William Harris sees.
Q: So, we asked you to tell us about a brand with high growth potential and what you'd do differently. Who did you select, and why?
William Harris: I’d like to focus on Rogue Fitness. They’re a major player in the fitness equipment industry, known for high-quality gear, and they’ve done a remarkable job of connecting with their customers on a personal level.
One thing that stands out is how they engage with their audience through local community events and fitness challenges. Not only does this set them apart from competitors who rely solely on digital interactions, but it also keeps Rogue in tune with what truly matters to their customers. This kind of brand-community connection is something a lot of ecommerce companies miss.
Q: Where could Rogue improve from an advertising standpoint?
William Harris: Here’s the thing—Rogue likely isn’t segmenting their product catalog by profit margin. My experience with similar brands tells me they probably have a generic CAC (Customer Acquisition Cost) goal, tied to Lifetime Value (LTV) if we’re lucky. But they’re not adjusting those goals in their ad strategy.
Let me break it down. Rogue’s higher-ticket items, like their $4,000 Functional Trainers, can afford a much higher CAC than lower-ticket items like plates or apparel. In theory, they could handle a CAC of $500 on those big-ticket items, but that doesn’t mean the same goal applies to lower-margin items. They should be segmenting their catalog in Google Shopping and Meta ads, allowing them to be more aggressive where it counts.
Q: What universal tip would you give to ecommerce brands on managing ad spend?
William Harris: Focus on profitability rather than ROAS (Return on Ad Spend). I know it sounds surprising, but a lower ROAS often yields better bottom-line results. The key is optimizing product feeds around the most profitable products and aiming for a bigger aggregate profit through increased ad spend—not scaling back to maintain a high ROAS.
Q: How can a brand start implementing this profitability-focused approach?
William Harris: If a brand can evaluate profitability effectively, they should optimize their product catalog by margin and then feed that back into ad channels. For brands that aren’t sure how, working with a team that understands profit-driven ad strategies, like Elumynt, can really make a difference.
Q: Looking ahead, what are some new tactics that could help Rogue connect with their audience?
William Harris: I’d look at how Rogue leverages omnichannel experiences. They’re already doing a great job of creating local touchpoints, but what if they took it further? Bringing limited-edition items to in-person events could drive excitement and exclusive sales. They also run online challenges, which are fantastic, but they could offer every participant a discount or coupon code to drive repeat purchases.
In other words, there’s a lot of creative potential in blending in-person and online interactions—and it’s a great way for brands like Rogue to deepen engagement with their community.
The Takeaway
Rogue Fitness exemplifies how strong community engagement and customer connections can elevate a brand in a crowded industry. But as William Harris highlights, even successful brands can miss opportunities to optimize for profitability. By shifting their focus from ROAS to profit-driven ad strategies, Rogue – and ecommerce brands like them – can unlock untapped growth potential.
Here’s what to keep in mind:
- Profit Over ROAS: A lower ROAS can often mean a higher bottom line when ad spend is allocated to high-margin products.
- Segment Smartly: Use profitability data to tailor your ad strategy. Segment your product catalog by margin, and align your CAC goals accordingly.
- Blend Channels Creatively: Leverage omnichannel tactics like in-person exclusives or online challenge incentives to deepen customer relationships and drive sales.
Whether you’re scaling your business or optimizing your ad strategy, the goal should always be to make your dollars work harder – not just to hit a flashy ROAS metric, but to drive real, sustainable growth.
Grow Smarter with Shipfusion
At Shipfusion, we know that scaling profitably isn’t just about smarter ad spend – it’s about aligning every part of your business for growth. With customizable fulfillment solutions, real-time order visibility, and omnichannel support, we help fast-growing DTC brands stay ahead of demand while keeping costs in check.
With Shipfusion, you’re not just keeping up with growth – you’re anticipating it. Talk to one of our fulfillment experts today to discover how a smarter fulfillment strategy can drive your business growth.
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