Goals and margins
Give the agent your targets and what each order earns, so it can tell an ad that misses your goal from one that loses money.
Tell the agent two things about each brand: the results you aim for, and what one order is worth to you. From those it works out your breakeven, so it can tell an ad that misses your goal from an ad that loses money on every sale.
Why it matters
A target is where you want to be. Breakeven is the point where a sale stops paying for itself. They're rarely the same number.
Say you aim for a cost per purchase of $26, and each order leaves you $30 after costs. An ad set at $28 a purchase misses your target, but every sale still earns you money. One at $55 loses money on every sale. Knowing your breakeven lets the agent treat those differently:
- Daily suggestions only suggest pausing an ad set or ad for a high cost per purchase when it's at least twice your target and above your breakeven. If it's twice your target but still below your breakeven, they suggest a smaller budget instead, where the ad set has a budget of its own.
- An ad set or ad that spent at least twice your target in a week with no results at all can still get a pause suggestion, breakeven or not.
- For a return on ad spend target, breakeven isn't part of the rule. A pause needs your ROAS at half your target or lower.
Missing a target is not the same as losing money
Set your business numbers as well as your targets. Without them the agent knows what you want, but not where you start losing money.
Before you start
- Open Settings, then Agent. Everything on this tab belongs to the brand you have selected.
- Everyone on your team can open the tab. View Only teammates can see your targets and numbers but can't change them.
- Every change takes effect from tomorrow, in your ad account's time zone.
Targets
A target is one metric, a direction and a value, measured over a window. For example: Cost per purchase, Below $26.00, over the Last 7 days. Each brand has at most one target per metric.
You can add a target for Cost per purchase, Return on ad spend, Cost per result, Cost per click, Click-through rate or Conversion rate. Costs default to Below and the rest to Above.
- Select Add target.
- Pick the Metric, the Direction, the Value and the Window. Money is in your ad account's currency.
- Select Save target.
To change a target, select Change on its row. History lists every version of each target, newest first, with who set it and the days it was in force.
Proposed and Confirmed
A target is either Proposed or Confirmed. A proposed target reads "Not in force until confirmed", and daily suggestions only work from confirmed ones. Select Confirm to put it in force from tomorrow.
A target becomes a proposal in two ways:
- Proposed by the agent. When you tell the agent a target in chat, it saves it as a proposal and tells you to confirm it in Koast. The agent can't confirm a target, and it never replaces a target you set or confirmed.
- Your business numbers changed. When new business numbers move the breakeven of a cost target, that target goes back to Proposed until you confirm it again.
Business numbers
Four numbers describe one order:
| Field | What it is |
|---|---|
| Average order value | What a typical order is worth before costs. |
| Gross margin | Share of the order value left after the cost of goods, in percent. |
| Fulfilment cost | Shipping, packing and handling for one order. |
| Payment fee | Share of the order value your payment processor keeps, in percent. |
Select Add numbers (or Edit numbers), fill in what you know and select Save numbers. Leave a box empty if you don't know it.
Numbers the agent recorded
If you tell the agent your order value or margin in chat, it records them for you. The card then shows Unconfirmed and reads "The agent recorded these numbers. They count once a person saves them." Select Review numbers, check them, fill in anything missing and select Confirm numbers. The agent can fill in a number you haven't given, but it can't change one you confirmed.
How breakeven is worked out
Koast first works out what one order leaves you after costs:
Average order value × (gross margin − payment fee) − fulfilment cost
- Breakeven cost per purchase is that amount. Pay more than this for a sale and you lose money on it.
- Breakeven return on ad spend is the average order value divided by that amount.
For example, a $60.00 order with a 65% margin, a 3% payment fee and $7.20 fulfilment leaves $60.00 × 62% − $7.20 = $30.00. Breakeven cost per purchase is $30.00 and breakeven return on ad spend is 2×.
Your Cost per purchase and Cost per result targets show this breakeven next to their window, for example "Last 7 days · Breakeven $30.00".
When there's no breakeven
The card explains why instead of showing a number:
- A number is missing, for example "No breakeven yet: it needs the fulfilment cost per order."
- Each order earns nothing, or loses money, once fulfilment and fees are paid. Check your margin and costs.
- Koast doesn't know your ad account's currency yet.
Promo windows
A promo window marks a sale or a launch, so the agent doesn't mistake its results for your usual days.
- Select Add window.
- Give it a Name, pick when it Starts and Ends (90 days at most), and set the Aftermath days: the days after the end when results are still off. The default is 3, and you can set 0 to 30.
- Select Add window.
Each window shows Upcoming, Running or Aftermath. Once its aftermath is over it drops off the list. Select Delete to remove one.
How the agent uses them:
- In chat, the agent checks your promo windows before it explains a spike or a dip in your results.
- Daily suggestions raise no pause or budget suggestions while the two weeks they compare overlap a promo window or its aftermath.
Business type
Describe what you sell in a few words, such as "Skincare sold online", and select Save. It helps the agent read your results in context.
Tell the agent in chat
You can set all of this up by talking to the agent:
- "Our target cost per purchase is $26" saves a proposed target.
- "Our average order value is $60 and our margin is 65%" records unconfirmed business numbers.
- "What's my breakeven?" or "What are my targets?" reads what's saved. If nothing is saved, it says so.
Either way, the agent tells you that what it saved stays a proposal until you confirm it in Settings, Agent. A target you state in a chat also counts for the rest of that chat.