Improving ROAS +84% With Data Driven Decisions at MyHD

“I had a slight feeling that Google Ads was the key to my financial success, but I wasn’t so sure until Northbeam made it clear that I needed to invest more in Google to see a better long-term ROI.”
- Juan, MyHD DJ Store

Juan, an entrepreneur and small business owner based in Chile, had become accustomed to relying on instinct to make ad spend decisions. Amidst an economic crisis, his ecommerce business finds itself among the lucky few with profits increasing. Juan often juggles a myriad of daily tasks as an individual running his own business. So, swift decision-making to ensure his time and budget are utilized efficiently was of utmost importance.

After only two months on Northbeam, Juan was surprised by how quickly he was able to identify the best channels for finding new customers, reallocate his limited media budget, and drive growth – all of which were dependent on accurate data.

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Unhelpful Data Aggregation and Vanity Metrics

Juan accepted that data to assess the performance of his digital ads was limited and ambiguous. He often questioned the data provided by ad platforms like Meta and Google – the revenue number the ad platforms claimed to realize was always more than he realized during that same period. It was clear that if he made media buying decisions based solely on Google’s data, then he would spend more on advertising than they were bringing in through sales.

Ultimately, Juan’s only choice was to make decisions based on his instinct, which wasn’t a risk worth taking for a small business amidst an economic crisis.

How First-Party Data Reduces Spend to Increase Profitability

Juan knew there had to be a better way – so he searched for a tool that could provide him with accurate marketing data to really learn what was driving revenue. Northbeam’s ability to collect and aggregate first-party data allowed Juan to access insights generated from a complete data set that wasn’t limited by privacy laws placed on 3rd party data providers (i.e., Google and Meta). A dashboard that is easy to navigate and interpret–with the ability to dig more granularly, which was crucial for Juan since his day-to-day as a business owner required him to wear many hats. “Northbeam makes it clear on any of the gaps you find on other platforms," Juan said.

Since Juan implemented Northbeam, he uses the platform as a single source of truth to ensure that he continues to realize more revenue than he is spending. After only 67 days on Northbeam, Juan was able to quickly compare Google versus Facebook’s contribution to sales. Northbeam’s data demonstrated that CAC was significantly higher on Facebook compared to Google–but ROAS had the potential to be higher since his prospective customers were finding him mostly through Google search. He re-allocated spending based on new insights, increasing ROAS on Google from 7.72 to 18.68.

The Growth Continues

Since using Northbeam to inform decisions, Juan’s total ad spend decreased – making room in his budget to continue using and spending on Northbeam. After reducing spend, Juan improved blended ROAS by +84% and reduced CAC by -21%. He refers to the platform as a free tool because his returns are far more than the cost of Northbeam. Aside from data fidelity and ease of use and decision-making, Juan feels supported by the regular Data Reviews conducted by his dedicated customer success manager and continues to find the Northbeam dashboard and the customer success team as invaluable.

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