How This Applies to Home Care Marketing
Calculating home care ROAS requires tracking leads to actual clients and their revenue. A $500 ad spend generating one client worth $50,000 in lifetime value represents extraordinary ROAS—but you need tracking systems to measure this accurately.
Consider client lifetime value, not just initial month revenue, when calculating ROAS. A client staying 18 months at $3,000/month represents $54,000 in revenue. Campaigns that seem marginally profitable on a short-term basis often show excellent ROAS when considering full client value.
Key Takeaway
Calculate ROAS using client lifetime value, not just initial revenue. Home care’s recurring revenue model means advertising that seems expensive initially often delivers excellent returns over the full client relationship.