Most brands measure new customer acquisition the wrong way.
They optimize for:
NC-ROAS (New Customer Revenue on Ad Spend)
Revenue from new customers ÷ Ad spend.
Sounds logical.
But there’s a problem 👇
It completely ignores costs like:
• COGS
• Shipping
Which means you can scale campaigns that look profitable but actually lose money on the first order.
That’s why more brands are shifting to:
NC-POAS (New Customer Profit on Ad Spend)
Instead of optimizing for revenue, you optimize for profit from new customers.
The difference?
Old method (NC-ROAS):
• Ignores product costs
• Often loses money on first purchase
New method (NC-POAS):
• Profit & Growth focused
• Accounts for all costs
• Ensures first-order profitability
