Ecommerce Truisms: Profit, Quality Audience, First Purchase, Attribution, Dashboards, Commodity

– Profit should be prioritized over revenue in ecommerce.
– Quality audience and targeted traffic are more important than sheer volume of traffic.
– First purchases and customer intent are more valuable than repeat purchases.Focus on quality audience and understanding customer intent rather than just driving traffic.E-commerce truisms: Profit over revenue. You can’t pay for new products if you’re losing money. If your revenue goes up and you sell more products, you need more funds to be able to buy new products. If your north star is revenue, you’re going to be screwed.

Quality audience over traffic. Traffic for the sake of traffic isn’t necessarily good. You need to understand the type of traffic that your ads and other sources are driving. The best way to do this is to understand a combination of data points relative to your customers’ end goals in relation to revenue, orders, and conversion. These things combined allow you to pair them with CAC to understand your profit margins per order. If you know the difference in what makes people convert and what doesn’t, you can mold your customer journey to find more of the good and less of the bad.

Subscription to conversion rate over number of signups. A million signups of people who aren’t interested in buying your product or not showing intent are worthless compared to those who actually sign up and purchase. It’s a quality before quantity argument that is missed by lots of marketers. Most people will purchase before signing up. Signing up is largely a sign of someone already showing intent to purchase at a greater rate than normal visitors.

First purchase over repeat purchase. A repeat purchase cannot happen until a first purchase happens. Your goal is to get the right product into the right person’s hands and make it incredibly easy for them to make that decision by providing all the necessary information up front.

Attribution doesn’t matter as much as you think. If your messaging is proper, focusing on those most likely to convert across your marketing channels, you should be driving similar quality audiences. If your customer journey is solid, all channels will convert at similar rates with similar data combinations. It doesn’t matter what channel converted them or brought them in. Your messaging should be similar, and your creative should adapt to the platform, but the messaging should be the same.

Dashboards are a waste of time. I see so many founders that spend more time trying to understand dashboards, which are determined by the most erratic of all things: consumer behavior. Yet somehow, in the tea leaves, there are companies telling you that they can predict what’s going to happen and where the gaps are without actually asking customers questions and using that data. It’s all bullshit.

Everything is a commodity. The sad truth is that everything today is a commodity, so focus on what others aren’t doing, overshare, give too much information, use video explanations on every product page, go the extra mile to explain what you sell and how it works and who it’s a great fit for. Larger brands with larger categories don’t have the ability to do this and this becomes a competitive advantage. #marketing #ecommerce #data

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