Why Most Business Owners FAIL at Paid Search

Why Most Business Owners FAIL at Paid Search

business metrics that matter cost per session cps improve ltv strategies increase aov ecommerceincrease revenue per session rps Sep 03, 2025

 Most owners obsess over platform dashboards. But as former Megaphone CEO turned coach Lauren Oakes explains, real growth starts outside the ad platforms—by tracking the business holistically and making decisions from blendedperformance, not channel-by-channel vanity metrics.

Below are Lauren’s most important metrics, how to use them, and practical plays to lift AOV, LTV, and profit across e-commerce and services.

 

 

Start Above the Platforms: Your Daily Pulse

Before you dive into Google or Meta, measure the whole machine every day (or as close as you can):

  • Cost per Session (CPS)
    All paid media spend ÷ total sessions.
    Tells you how efficiently paid is bringing the right traffic to site.

  • Revenue per Session (RPS)
    Total revenue ÷ total sessions.
    Validates traffic quality and on-site conversion. If CPS ≈ RPS, you’re running uphill.

Use CPS and RPS to diagnose first (traffic vs. onsite issue), then optimize inside each platform with the granular metrics you already know (CTR, CVR, tCPA/tROAS, etc.).

Pro tip: Know your fixed vs variable cost mix. A business with 10% fixed costs can scale very differently than one at 40%.

 

Testing Windows & Trend vs. Blip

  • Aim for ~30-day test windows when possible to observe clean trends.

  • Don’t test too many variables at once.

  • Anchor tests to your baseline CPS/RPS so you can say with confidence, “this moved the needle.”

 

E-commerce: How to Raise AOV (Without Killing Margin)

  1. Bundles that map to personas & moments
    Curate sets for use-cases (e.g., trimester bundles, post-birth, gifting). Tag them clearly.

  2. Progress bar incentives
    Free shipping → gift → bigger gift tiers. Show value (“Free $25 gift at $120 spend”). Gamifies the cart and nudges bigger baskets.

  3. Small, high-perceived-value gifts
    Freebies convert surprisingly well; highlight the retail value.

  4. Post-purchase upsells
    After the card is in, present a frictionless add-on (“Add socks for $5?”). It reliably bumps AOV.

  5. Gift cards that lock in the next order
    “Spend $200, get a $100 voucher (min spend $200).” Great for AOV and future LTV.

πŸ‘‰Maximizing E-Commerce Profitability with POAS: Simplify Google Ads Strategies for Better Results

 

Lifetime Value (LTV): Make Them Come Back

  • Subscription offers (for true repeatables): toiletries, cleaning, supplements.

  • Loyalty & referrals: points, tiers, and real rewards worth chasing.

  • Community: Facebook, WhatsApp, Discord, email/SMS—pick one and make it lively.

  • A face to the brand: founders or creators convert better than logos. Lean into personality; you’re not trying to please everyone.

“People buy on emotion and justify with logic.” Design your journey to spark feelings, then stack logical perks (value, gifts, utility).

 

Services & Lead Gen: It’s Not That Different

  • Borrow from e-com: bundles (maintenance plans, 10-visit packs), memberships, referrals, email/SMS to re-engage.

  • Build trust & connection: a human face, values, proof, and quick follow-ups.

  • Consider annual plans (e.g., home maintenance checks) with genuine value.

 

AI vs. Human: Who Does What?

  • AI excels at: summarising research, spotting patterns, accelerating analysis.

  • Humans win at: logic-in-context, voice, emotional resonance, and high-ticket selling.

  • Keep your top-value leads human-handled (personal Looms, tailored emails, real calls). Use automation to free time for those moments.

 

Quick Playbook

  • Track CPS & RPS daily; make big decisions from blended numbers.

  • Fix the bottleneck (traffic vs. onsite) before scaling spend.

  • Test in 30-day blocks; one lever at a time.

  • For AOV: bundles → progress bar tiers → post-purchase upsells.

  • For LTV: subscriptions, loyalty, referrals, and community with a visible brand face.

  • Let AI research; keep copy, sales, and relationships human.