Introduction:

The term CRR refers to the total cost of advertising to the total revenue & can be calculated by dividing the Overall Spend by the Total Revenue. This metric takes into account all the sales that are coming in on the website backend & shows the total revenue of the same.


For eg. If we spent INR 100 on FB & INR 50 on Google, and got a sale of INR 400 on the website (backend) - the CRR would be [(100+50)/400]*100 = 37.5%


On the AY platform it is visible in the “Orders View” in daily reports. 




Why to look into the CRR metric?

You must have this doubt that why exactly do you need to check the CRR metric as it also includes your organic sale, but after the iOS 14 policy laid out by the Apple, there have been some limitations in tracking the conversion events.


According to Apple's policy, it now prohibits certain data collection and sharing unless people opt in to tracking on iOS 14 devices via the prompt. As more people opt out of tracking on iOS 14 devices, ad personalization and performance reporting gets limited for web conversion events. 


Because of these changes, the Facebook ROAS can be somewhat misleading. We have personally seen a dip in the Facebook ROAS across a number of other brands after the iOS 14 policy. 


If the ROAS of a client goes down from 4x to 3x on FB but the CRR remains the same across 2 months, this indicates that the fall in ROAS of FB is due to reporting challenges on FB and the performance on the website backend remains the same.


Important Points:

> CRR metric is currently only being tracked for brands who are on Shopify, Magento, & WooCommerce platforms.

> The ‘Overall’ spend column under the Orders View only includes the spend done by the brand through AdYogi. In case, the brand is running separate in-house campaigns or other marketing (e-mail, influencer, etc.), the spends of the same is not tracked under the ‘Overall Spend’ column.

> A constant CRR rate means that the sale on your website backend is going as usual & there may only be the reporting error.