ROAS Optimisation: How Funnel Thinking Turns Paid Spend into Predictable Growth

D2C marketers often face a frustrating reality. Paid campaigns are running across marketplaces and direct-to-consumer websites, budgets are being spent consistently, yet ROAS refuses to move beyond breakeven. The instinctive reaction is to tweak creatives, increase spend, or switch platforms. But more often than not, the real issue lies deeper.

nROAS optimisation rarely fails because of ads alone. It fails because brands run campaigns without running a funnel.

When marketing activity is fragmented across platforms and teams, paid traffic enters a system that is not designed to convert, retain, or compound value. Without funnel thinking, even the most aggressive media spend struggles to deliver sustainable returns.

The Core Problem: Campaigns Without Funnel Structure

In D2C especially, brands operate across multiple touchpoints at once. Marketplaces drive volume, D2C websites promise margins, and paid media fuels traffic to both. However, when these efforts are not connected by a single funnel strategy, ROAS inevitably suffers.

A real-world marketing funnel optimisation case study highlighted this exact issue. Paid campaigns were underperforming, not because of weak intent, but because there was no unifying funnel logic guiding customer journeys. Messaging remained the same across all segments, CRM automation was absent, and there was no structured way to move customers from first purchase to repeat value. ROAS stayed well below target because traffic was being acquired without a system to nurture it .

This is a common problem across D2C brands. Campaign execution exists, but funnel ownership does not.

How Poor Funnel Design Impacts ROAS

When funnel optimisation is missing, inefficiencies quietly stack up. Paid ads target broad audiences with generic messaging, leading to wasted spend. Customers move from awareness to purchase without guidance, often dropping off before conversion. Post-purchase engagement is ignored, meaning no structured upsells, no cross-sells, and no review collection to fuel future performance.

Most importantly, platforms remain disconnected. Marketplace data, website behaviour, and CRM insights sit in silos, making it impossible to understand what is actually driving revenue. Campaigns continue to run, but learning does not compound.

Research from GrowthJockey shows that D2C brands using structured A/B testing frameworks have achieved up to a 15% improvement in ROAS by systematically optimising creatives, offers, and audience messaging over time. This reinforces the idea that ROAS optimisation improves when decision-making becomes methodical rather than reactive.

Who Is Most Affected by Funnel Inefficiency

The impact of poor funnel optimisation varies depending on team size, but the damage is universal.

In larger marketing teams, the challenge is complexity. Multiple channels, agencies, and stakeholders create analysis paralysis. Leadership demands ROAS accountability, but fragmented data makes it difficult to justify spend. Without a clear funnel view, teams struggle to explain why performance fluctuates and which levers truly matter.

Smaller teams experience a different kind of pain. Execution consumes all available bandwidth, leaving no room for testing or automation. CRM flows remain unbuilt, cart recovery is ignored, and repeat purchases rely on chance rather than design. ROAS stagnates because effort is focused on survival instead of optimisation.

In both cases, the absence of funnel ownership turns paid marketing into a cost centre rather than a growth engine.

Why ROAS Optimisation Needs to Be Solved Now

ROAS optimisation is no longer optional, especially in healthcare and regulated D2C categories where acquisition costs are rising. Brands that optimise their funnels gain a structural advantage over competitors who rely purely on media spend.

Industry data supports this shift. Insights shared by OpenSend show that personalised upsell and cross-sell flows can contribute between 10% and 30% of incremental revenue when automation is implemented correctly. This revenue is unlocked without increasing acquisition spend.

For larger teams, funnel optimisation enables scalable ROAS improvement and defensible budget allocation. For smaller teams, it allows automation to replace manual effort and unlock results that would otherwise require much larger budgets.

This principle aligns closely with what we explored in The Secret to Consistent Marketing Using the Right Tools, where consistent systems form the foundation for reliable performance.

What Actually Enables Sustainable ROAS Optimisation

True ROAS optimisation is built on structure, not hacks. It begins with disciplined A/B testing that evaluates creatives, messaging, offers, and audience segments systematically. Over time, this testing creates a feedback loop that continuously improves paid performance.

CRM automation plays a central role in this process. Tools such as HubSpot and Zoho Campaigns allow brands to personalise engagement beyond the first purchase. Automated cart recovery, upsell flows, review collection, and loyalty sequences ensure that paid traffic delivers value long after the initial conversion.

Equally important is funnel analytics. When marketplace and D2C data are connected, brands gain clarity on how customers move through the funnel and where revenue is actually generated. This transforms ROAS optimisation from guesswork into strategy.

An annual marketing framework that balances proven tactics with experimentation ensures that learning compounds rather than resets. This approach is explored further in Mastering Lead Conversions for Small Businesses, which highlights how online order integration strengthens mid-to-bottom funnel performance.

A Real Funnel Optimisation Example

In a D2C retail funnel optimisation engagement, the starting point was not ads but data. Sales performance across marketplace and D2C channels was analysed to identify leakage points and growth opportunities. Campaign strategy was aligned with sales targets rather than surface-level metrics.

Customer segments were reviewed to uncover upsell and cross-sell potential, while brand communication was refined to create a consistent narrative across platforms. A structured A/B testing framework was introduced to improve paid campaign performance, and CRM automation flows were designed to capture post-purchase value.

The result was not a temporary ROAS spike but a repeatable system. Upsell and cross-sell methodologies were clearly defined, paid performance improved through learning-driven optimisation, and a comprehensive annual marketing strategy was created with a balanced budgeting approach.

How 26Tech Supports ROAS Optimisation

At 26Tech, ROAS optimisation is approached as a system design challenge rather than a media-only problem. We analyse marketplace and D2C sales data to uncover funnel behaviour and revenue drivers, then build testing frameworks that improve performance over time.

We design CRM-driven upsell and cross-sell automation to increase lifetime value and create annual marketing strategies that balance experimentation with stability. This approach complements insights from Lead Management : Fixing mixed follow-ups and Fractional vs Traditional Marketing, which explore scalable funnel ownership models.

Next Steps

If your ROAS is stagnant despite consistent spend, the issue is rarely effort. It is structure.

A well-optimised funnel transforms paid marketing from a recurring cost into a predictable growth engine. When campaigns, CRM, analytics, and strategy work together, ROAS becomes measurable and scalable.

You can book a 1:1 consultation to audit your funnel or join our newsletter for ongoing insights on funnel optimisation, automation, and sustainable growth.

Conclusion

ROAS optimisation is not about finding the perfect ad. It is about designing a funnel where every stage supports the next, from first click to repeat purchase.

When funnel thinking replaces fragmented execution, paid marketing stops being unpredictable and starts driving long-term growth with confidence.