Simplifying Ecommerce: Focus on Data and Solid Fundamentals

– Customer acquisition costs, conversion rates, and other key performance indicators (KPIs) are influenced by timing and the quality of the audience.
– Understanding the traits of your audience and their customer journey can help increase these rates.
– By focusing on data and solid fundamentals, businesses can simplify and improve their operations, leading to consistent growth.The key action item is to focus on understanding your audience and their customer journey in order to increase customer acquisition costs, conversion rates, and other key performance indicators. Use data to gather information about your audience and their preferences, and incorporate this knowledge into all touchpoints that you can control.As much as we seek to control outcomes, there are many variables that are completely out of our control. Customer Acquisition Costs, Conversion Rates, and other KPIs come down to timing and the quality of the audience. For the majority of us, we guess via email and let ad networks pick who to show our ads to. If your goal is to increase these rates, you need to understand who your audience is and the traits about their customer journey that cause them to take action and purchase your products. The old way is to focus on benefits and try different angles to see what succeeds over a limited period of time. It’s a series of guessing that narrows down improvements slowly over time through a lot of work. The new way is to ask them, then take that data and understand the context of that data and how those correlative impacts can be woven back into all the touchpoints that you can control. We’ve been using the new way for a few years now, and the journey has been easier than the old way. No more guessing, just good business fundamentals. You know what else? I don’t stress about things I can’t control. Instead, I focus only on the things that I can control, which allows me to worry less. The majority of businesses wonder what’s wrong and how to fix it. When you switch to a data-first mentality, the only thing to worry about becomes how to make sure we stay in stock. We looked over the last 12 months, and the only time our numbers dropped is when we ran out of stock. No peaks, no valleys, no seasonality, just drops when we ran out of stock. Imagine a business where the charts consistently go up and to the right every month, and the myth of seasonality goes away because your fundamentals are right. It’s possible, but it requires breaking from the “norms” that we’ve all become used to. I can’t change the collective understanding of what people currently do in e-commerce because it’s built on years of doing it. However, I can tell you that things can and should be much simpler, and the idea that brands have completely overcomplicated things is real. My prediction is that there will be a retreat to the basics, a blueprint for how to run an efficient brand. We’re building one right now. Set it and forget it does work if you have solid fundamentals. I’m living proof of it. #ecommerce #customerjourney #data

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