– Focus on unit economics and streamline your product offering to focus on the most profitable products.
– Collect and leverage customer data to inform your marketing strategy.
– Implement an organized testing process, including version-controlled UTMs, to improve your marketing effectiveness.Focus on unit economics, streamline your product offering to focus on profitable products, prioritize brand building, collect and leverage customer data, and implement an organized testing process for better results in ecommerce.E-commerce turnarounds come down to a few things. You only need to focus on three things to be better than most. First, unit economics. Understand where your profit exists, which products are producing it, and streamline your offering to focus on those. Having fewer products means more focus, more targeted customers, higher margins, and a better brand. The most successful companies got there with one hero product. Too many product offerings kill smaller brands, so stay focused and build your brand around a core product offering. For those that sell commoditized goods (which is most of you), brand is the only thing that matters. This is how you get there. If you don’t have a 5x multiple on your products, you better have some massive organic traffic.
Second, data collection is a must. You need to get to know your customers and leverage that data into strategy. Seriously, just start. Not because our company does this, but because every organization blindly throws money around hoping for a result while collecting little to no relevant information. Advertising is gambling, and brands have a gambling addiction. The fact that we think it isn’t gambling scares me. Paid ads were like hitting a winning hand, but with changes to privacy, the odds of doing that have dropped. You’re putting down a bet, then letting a marketplace decide who your ads go in front of. Then, when you make a sale, it’s measured in a way to make you feel as if you won, not taking into account things like profit. Return on ad spend (ROAS) doesn’t give you a read on how profitable you are, only the revenue you earned against the spend you made. It’s engineered to make you think you’re doing better than you are. Retargeting is even worse, as most of the time you’ve already paid for the people to come to your website previously.
Third, organized testing. UTM structures and versioning are all you need to know about how bad this is. All professional gamblers have a system; it’s what allows them to make a living. Organized testing is the system you need to stand a chance against the house. I’ve seen it all, but the lack of an organized process around this bothers me. I haven’t seen UTMs that are version controlled for progressive testing. This is something that nearly every company gets wrong. It’s scary bad. If you can’t get UTMs right, how can you possibly iterate testing appropriately?
That’s it. Those are the only three things I would focus on if I was looking to streamline operations in an ecommerce brand.#ecommerce #strategy #marketinghttps://www.linkedin.com/in/jivanco