Metrics That Matter
Finding the Pin Section
Hey, this is Logan from Triple Whale, and today we're going to go over what metrics to pin to your summary page and why this section is the most useful one on your summary page.
All right, so when you log into Triple Whale, you're likely going to see a section at the very top of your page. It's going to be empty. It's going to be your pin section. So what this means is that any metric you see on your summary page, you can simply decide to pin it and it will move itself into the pin section. So let's walk through some of the sections really quick so you can familiarize yourself with what's available. And then we'll walk through which metrics I've pinned to my summary page and why I find it most valuable.
How to Use the Pin Section
So the first thing you're going to see are Triple Whale Stats. So Triple Whale stats mean that we are blending some metrics together to create the metric itself, such as net profit, blended ROAS, or MER.
Next, you're going to see Shopify store metrics. These metrics come directly through the integration with Shopify and should practically match what's in your Shopify account. Next, you'll see LTV. So these are metrics that we're using from Shopify, but blending them to make custom metrics such as LTV, frequency and LTV overcost per acquisition.
The next, you're going to see different sections based on integrations you have set up within Triple Whale, such as Facebook, Google Analytics, Google Ads, TikTok, Gorgeous, Klaviyo, as well as things like Snapchat, if you have it available.
You're going to see Triple Whale expenses. So what we do is we plug directly into your Shopify account, pulling things like payment gateways, cost of goods, handling fees, shipping and custom expenses that you can set on your own. We have inventory levels, so plugging into Shopify, we find all the inventory that you have set up and the cost associated with making those, and we display those numbers and values here.
And then of course we have custom metrics, which we will cover in another video that you can access below. So now let's move into pin. If you hover over any section that we just covered, you can see that there is a pin icon. Tool tip, pin icon by clicking the pin icon. That metric will both stay in the section it belongs to, as well as your pin section.
Now in my pin section, I follow a couple of rules. As a media buyer, I want to know how much money I'm spending. I also want to know how much it's costing me to acquire the customers that are coming to the store. And then I'm also interested in knowing how much profit we're making to the business. So when I was using Trip Whale as a user, it was very important for our brand to make a certain amount of profit per month.
Specifically, we were shooting for at least $10K profit per month so that we could invest in the new products, maybe even create new hires or even just pay ourselves.
So you'll see here that I have my blended ad spend, my blended ROAS, which is my ad spend and my sales revenue that I have, our MER, which is telling us that today we've spent 20 per 7% of the revenue we've made has been spent through ads. We have our AOV, new customer cost acquisition and our CPA. Now in another video, we'll go over contribution margin per order and contribution margin per new order that you'll want to dive into, so you can truly understand the impact these metrics make.
We have our new customer percentage, repeat customer percentage, net profit and sales. So as you log in every day, whether it's on your phone or just logging in through your desktop computer, if you pin these metrics, you're going to start to realize really fast how they work together.
So I know that as ad spend goes up, you should see a direct correlation in how much revenue we're making. If you don't, you're going to see this MER metric start to creep up very quickly. So MER, in general, we would set as a goal to say, I want to spend 20% on average of my revenue on ad spend. So you can see that my ROAZ is 3.65, but these metrics are just the difference in looking at a fraction, right?
So one fifth would be 20% or five over one would mean for every $5 I make, I spend one in ad spend. So here you here can see 3.65 correlates directly into the percentage, 3.65 over one or one divided by 3.65. Then our AOV, you want to look at that over time. So if I were to change this to the last 30, I can easily review where this is.
So I know that typically like 90 something dollars, or roundabout is what I should be shooting for. And that helps me understand my new customer acquisition. So by looking at all these metrics together, I can understand over time really what looks good, what feels good to our brand, and what's going to keep us profitable.
On any given seven day range, if I see that my MER is actually above 20 and my new customer acquisition is creeping up towards that $40 mark, for this specific brand, I knew that that was pushing us into a bad state. We need to change strategy. We need to change maybe our audience targeting. What products are we pushing? Or maybe we should just kind of pull ad spend back a little bit to save money. Because remember, our goal here is to make money of course, through sales, but my real goal is net profit.
How Metrics Fit Together
So I need to make sure that I'm not spending egregiously and cutting into our profit number if we're going to realize those sales anyway without the ad spend. So these are, it's kind of like the difference between science and art. We're kind of blending the two together here. And over time you're going to get a feel for how these metrics are going to work together and what actions you're going to take within your marketing ecosystem that impact each of these.
Now, one interesting thing that you can do, regardless of your pin section or any section within triple oil, if you were to hover over one of these sections and you see the three dots, that means you can actually set a target for this metric. So as I mentioned, my target's around a 20% MER, and as I mentioned with the fractions one fifth or 5 over 1, I'm targeting a five blended ROAS. So if I tell the system that I want a five, I can set that target here and I can save it.
And the next thing is I can do this for a new customer acquisition. I told you that if I was creeping up towards 40, that's kind of a sign that I'm not spending as efficiently as I should be. So that's where I would set the target at... Let's give myself a little bit of leeway. I'll set it at 38 because really if I'm going above 38, creeping towards 40, that's a negative sign.
Soon as I hit 38, that means I probably need to be thinking about how I'm going to react and change my strategy to acquire new customers for less. So I'll save that target as well. And that is the pin section and why I use it and why I think these metrics itself are the most important. And again, make sure you pay attention to the contribution margin per new order video that will be linked below. Thanks again for checking us out and we'll talk soon.