1. Ecommerce success relies on a logical hierarchy, starting with product market fit and progressing through conversion, attribution, advertising, traffic, subscribers, and retention.
2. Brands must prove themselves to be a good experience worth repeating in order to contact customers outside of business-related matters.
3. Businesses cannot rely solely on email or ads, but instead need a combination of product market fit, good acquisition channels, constant subscribers, and a great product to drive success.The key action item is to focus on future-proofing your business by ensuring that all parts of the ecommerce hierarchy, including product market fit, conversion, attribution, advertising, traffic, subscribers, and retention, work together for maximum results.E-commerce has a logical hierarchy: retention can’t happen without subscribers, subscribers can’t happen without traffic, traffic can’t happen without advertising (getting the word out). Advertising is complicated without attribution, and attribution can’t happen without conversion. Conversion can’t happen without product market fit. So, all brands should work backwards: Product Market Fit, Conversion, Attribution, Advertising, Traffic, Subscribers, Retention. I know, crazy right? Product Market Fit has to come first, followed by initial conversions. Then, you can start looking at attribution to understand why people converted and what helped them convert. After that, you take that content and use it in advertising to drive traffic, which leads to more subscriptions and retention from interested parties and eyeballs. This is important to remember because people who make purchases don’t necessarily opt into receiving your marketing communications. So, you still have to prove yourself to be a good experience worth repeating in order to contact them outside of business-related matters associated with their orders.
Let’s put some theories to bed:
– You can’t drive a business on email alone.
– You can’t drive a business on ads alone.
– You can’t drive a business without product market fit.
– You can’t drive a business without good acquisition channels.
– You can’t drive a business without a constant source of subscribers.
– You can’t drive a business without a great product.
Let’s be blunt: if you’re in CPG, your margins are about to be hit hard. If you’re selling non-consumable goods, your business is likely going to slow down as well. There’s a recession brewing with inflation taking hold, and people are going to stop purchasing things. With a squeeze on unit economics across all parts of the supply chain, things are going to get harder. The focus on strategy right now has to be around future-proofing your business by understanding that all parts need to work together for maximum results. #ecommerce #marketing #strategyhttps://www.linkedin.com/in/jivanco