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  • Writer's pictureDallas Crum

PSA: CPG Brands Please Stop Burning Money!

Updated: Aug 25, 2020

If you are selling DTC e-commerce here are 7 things you need to focus on.

So I have good news and bad news for you. I’m going to give you the bad news first, BUT please stick around for the good news because it’s going to help you stop wasting money and massively increase revenue.

Are you sitting down? … okay good. You’re probably wasting money. Like possibly, a lot of it. It’s okay though, you are not alone. We get to see “under the hood” of a lot of e-commerce stores and their ad accounts.

There are a lot of places where leaks can happen in the e-commerce funnel that can lead to a lot of wasted resources. We see some major e-commerce faux pas by brands small and large.

Now for the good news. YOU CAN FIX IT! AND in this article, we are going to tell you exactly where you need to look to find the leaks in YOUR e-commerce funnel.

Now if you are serious about growth for your brand, you’re going to want to identify these leaks and get them fixed ASAP.

1. Email - 20%-40% of your revenue should be coming from email.

That’s right, as a benchmark 20-40% of sales should be coming from email. If it’s not, then this something you should focus on right away (there is a reason we put it as #1 on this list)!

If you are using a simple platform like Mailchimp and just sending “Newsletters” or weekly/monthly “email blasts” we need to get you in a time machine and get you to the year 2020 as fast as possible!

You should be using a smart email platform like Klaviyo, where you can segment your customer lists and give them custom, automated experiences based on their shopping behavior. There are email frameworks that you can follow to massively increase revenue through email. Shameless plug… We have a framework we call Advanced Email Systems. We are happy to share details about it and exactly how have helped brands transform their email channel in less than 90 days. If you’re interested, we recommended taking advantage of our complimentary 29 Point E-Commerce Analysis, which you can learn more about here.

2. Mobile Optimization (and free tool to help you find out if your site is optimized)

This one is pretty straight forward. It’s likely that at least 65%+ of your traffic is coming from mobile devices. Are you optimized for mobile?

Here is a free tool from Google that will tell show you in 10 seconds if your store is mobile optimized. It’s called Google Pagespeed Insights. When testing your page speeds, don’t just check your homepage, be sure to also check your top landing pages. Google will give you a score that will help you decide if you need to optimize your website. Another good benchmark to think about is, your pages should load in less than 2 seconds.

Mobile optimization is not just important for the user experience, but also for search engine optimization (SEO). Basically, Google doesn’t like your website as much if it’s not optimized for mobile devices. If you need help deciphering all of the technical jargon Google gives you after running your optimization test, just let us know and we are happy to help!

3. Heatmapping, Screen Recording & User Testing

We basically require our clients to use this fantastic tool called Hotjar.

Hotjar will allow you to learn more about your user experience (UX). It’s crucial that we are crystal clear on how users experience our site. We can literally watch what they are doing and see where they are getting stuck. Tools like HotJar can also help us make better design and copywriting decisions. There is a free version of HotJar available. So there is no excuse not to get it set-up right away!

4. Proper Retargeting

We have all experienced retargeting. When that thing we were shopping online follows us around the internet.

There is a reason why so many companies utilize this strategy.

IT WORKS! The screenshot below is from straight from a long time client’s Facebook Ad Manager Accounts. It says it all when it comes to the value of retargeting.

If you arent familiar with Ads Manager, it is showing that this client is running a 57.92X return on their retargeting campaign.

(I took this screenshot on August 18, 2020 - you can see the dates in the upper right corner - 90 days)

So every 1 dollar they give to Facebook they are generating $57.92 in return. While this is a top-performing campaign. Our clients across the board see HUGE returns from their retargeting campaigns.

5. Search Engine Optimization (SEO) Campaigns

I was recently at an amazing digital event with some of the thought leaders in the CPG space. The CEO of Albertsons was the keynote speaker.

We heard from former executives at Amazon and many other SUPER smart folks. The biggest take away I had from that event was when someone said “SEO is the new shelf space” Being found when a customer is looking is crucial to success online. The big problem here is most brands haven’t even done proper keyword research and don’t understand the full extent of proper SEO (technical SEO, on-page SEO, off-page SEO).

6. Review & Loyalty Programs

Social proof is a key ingredient to success online and reviews are crucial. I don’t think anyone would dispute this fact.

Reviews are super helpful for increasing conversion rates and should be properly placed on product pages and other appropriate pages on the website. Your review software should be integrated with your email system to allow for segmentation and be a part of your plan to increase LTV (Customer Lifetime Value). Do you have a loyalty program in place? This should also be integrated with your review software. We recommend YotPo to our customers. It’s the top product in the market for reviews & loyalty programs.

7. You Must Know These Key Metrics

  • Average Order Value (AOV)

  • Average Number of Orders (ANO)

  • Customer Lifetime Value (LTV)

  • Conversion Rate (for each key behavior)

  • Cost to Aquire a Customer

Understanding these key performance indicators (KPI’s) like the back of your hand is pertinent to brands’ success online. Each serves their own purpose, but together they allow you to make far better decisions with your marketing budget.

What To Do Next

It’s now time to get off of our soapbox. Hopefully, you found value in this article and are already on your way to start fixing leaks!

If you want to maximize the effectiveness of your e-commerce channel by identifying the exact metrics, tools, and strategies that will help you grow faster and more efficiently.

We are happy to offer you our complimentary 29 Point E-Commerce Analysis.

Our 29 Point E-Commerce Analysis will help you roadmap your next best steps to growing and scaling your direct e-commerce Channel!

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