The Metrics That Mislead (And What to Track Instead)

This weeks Orbit by Aplo Group newsletter is one of my favorite topics. It's extremely overlooked and not commonly discussed. There are so many marekting metrics out there that we throw around daily, but often incorrectly which causes a breakdown of alignment between parties.

Why 'ROAS' Alone Is Useless

If you hear someone say "our ROAS is 3x" and leave it there, ask them: Which ROAS?

Is it:

In-platform ROAS?

Full funnel ROAS?

New customer ROAS?

7-day click? 1-day view? Triple Whale? Northbeam?

The word "ROAS" is a shell game. Unless it’s clearly defined, it's misleading at best and useless at worst.

At Aplo, we refuse to use it on its own. We always specify the context, because if your team is making decisions based on undefined ROAS, you're flying blind.

And it doesn’t stop there.

MER, Full Funnel ROAS, and the Amazon Analogy

You might hear someone say: "We’re tracking MER."

Okay. But are you using MER the way Triple Whale defines it (as a %), or are you just talking about full funnel ROAS?

In Amazon terms:

ACoS = platform ROAS

TACoS = full funnel ROAS

One measures what the platform claims it did. The other measures what actually happened to your P&L.

Knowing the difference is critical.

The Hierarchy of Ecom Metrics

If you’re a paid-growth brand, here’s how to think about the stack:

• New customer ROAS: The north star for acquisition
• New customer contribution margin $: The real economic driver
• Full funnel ROAS / MER: P&L-level sanity checks

Platform ROAS: Granular signals for media buyers

The higher up the stack, the more strategic the view. The lower down, the more tactical.

Why Gross Margin Isn't Enough

Traditional gross margin stops at COGS. Ecom gross margin needs to go further.

• True contribution margin =
• Revenue
• minus COGS
• minus shipping & fulfillment
• minus payment processing fees

That’s the number that tells you what every sale is actually worth to the business — and it’s essential to isolate before subtracting ad spend.

The Metric No One Is Talking About (But Should Be)

New customer contribution margin per order.

This one tells you whether you’re scaling into profitability or into a cliff.

If that number’s trending toward zero as CAC increases, you’re on thin ice. Even if total contribution margin still looks okay.

Split it:

New customer contribution margin

Returning customer contribution margin

If returning customer revenue is not covering the CAC losses, your business isn’t scaling—it’s bleeding.

The LTV Lie (And How to Fix It)

Most brands calculate:

LTV = Lifetime Revenue

But that’s wrong.

Revenue isn’t what you keep.

LTV = Contribution Margin Before Ads

Only then can you accurately compare it to CAC. Because if CAC = $50 and LTV (real margin) = $45, you’re losing money. Period.

Align your math:

LTV = contribution margin before ads

CAC = ad spend per new customer

Now you can finally calculate payback periods, run cohort margin analysis, and see when and how you’ll turn a profit on acquisition.

The Bottom Line

Your metrics are only as useful as they are defined.

Get specific. Get clear. Align your whole team.

Because there’s no such thing as a "3x ROAS" unless you say exactly what it means.

And in this market, clarity is a competitive advantage.