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10 Secrets I learned about eCommerce by generating multiple 7-Figures while operating brands & working with clients.
Yes, this is a clickbaity screenshot with no context.
A threadski
Yes, this is a clickbaity screenshot with no context.
A threadski
1) Unit Economics
We can't build a skyscraper with sand foundations.
Our unit economics dictates the success of our brands.
We need to do the maths with our AOV, COGS, Shipping & Fulfilment fees + other
So we can have a north star.
A CPA Goal.
We can't build a skyscraper with sand foundations.
Our unit economics dictates the success of our brands.
We need to do the maths with our AOV, COGS, Shipping & Fulfilment fees + other
So we can have a north star.
A CPA Goal.
2) CPM & CPC doesn't matter.
There are only a few things we can control with Facebook.
CPC & CPMs aren't.
Both are directly dependent on the inventory & competitiveness of each placement.
Facebook optimizes that for us.
There are only a few things we can control with Facebook.
CPC & CPMs aren't.
Both are directly dependent on the inventory & competitiveness of each placement.
Facebook optimizes that for us.
No one wants low CPMs and CPCs but garbage traffic.
Advertising costs will continue to go up & competitiveness will be tougher and tougher
The only metric that matters when advertising is our CPA.
Advertising costs will continue to go up & competitiveness will be tougher and tougher
The only metric that matters when advertising is our CPA.
3) Focusing on our CPA is the 
to business growth.
To get a better CPA, we need to have a good business:
> Good Product
> Good Customer service
> Good Post-Click Experience
> Good Post-Purchase Experience
to business growth. To get a better CPA, we need to have a good business:
> Good Product
> Good Customer service
> Good Post-Click Experience
> Good Post-Purchase Experience
And of course, we have one Facebook lever to lower our CPA which is...
To Make Great Ads.
Most advertisers just throw ads at the wall and then have only two options:
1) Scale
2) Kill
And that's no bueno because starting from scratch again & again is not efficient at all.
To Make Great Ads.
Most advertisers just throw ads at the wall and then have only two options:
1) Scale
2) Kill
And that's no bueno because starting from scratch again & again is not efficient at all.
4) AIDA Metrics
Instead of killing ads because "they don't work" - we ask ourselves WHY they don't work.
We analyze with data. Here's how:
Attention -> 3-second view / impressions
Interest -> Avg. Watch Time
Desire -> Outbound CTR
Action -> ROAS
Instead of killing ads because "they don't work" - we ask ourselves WHY they don't work.
We analyze with data. Here's how:
Attention -> 3-second view / impressions
Interest -> Avg. Watch Time
Desire -> Outbound CTR
Action -> ROAS
With those metrics, we're not turning off ads because they don't work.
We iterate and try to get the 3 first metrics UP.
Even though CPA is the only metric to focus on, these are awesome for creative feedback & to make better ads.
We iterate and try to get the 3 first metrics UP.
Even though CPA is the only metric to focus on, these are awesome for creative feedback & to make better ads.
5) 60-90 Day LTV
It gets more & more difficult for brands to get profitable on the first transaction.
That's why LTV is important.
However, most brands don't have the luxury to wait for that LTV to kick in.
+ LTV doesn't tell us anything besides that people come back.
It gets more & more difficult for brands to get profitable on the first transaction.
That's why LTV is important.
However, most brands don't have the luxury to wait for that LTV to kick in.
+ LTV doesn't tell us anything besides that people come back.
Instead, we focus on our 60/90 Day LTV.
This metric allows us to understand & take action on many different sides of the business.
What demographic is worth more?
What happens when people buy this product on their first transaction?
What happens when they use a discount?
This metric allows us to understand & take action on many different sides of the business.
What demographic is worth more?
What happens when people buy this product on their first transaction?
What happens when they use a discount?
Essentially, we analyze the back-end of your business & optimize our pre/post-purchase experience accordingly.
@triplewhale is the best-in-class for this.
(and everything else ecom)
@triplewhale is the best-in-class for this.
(and everything else ecom)
6) Advertising needs science.
How does scientific testing work?
First, we come up with a hypothesis about our test.
Then we conduct our test & get an insight.
Based on our results, we either establish a control or start a new test.
How does scientific testing work?
First, we come up with a hypothesis about our test.
Then we conduct our test & get an insight.
Based on our results, we either establish a control or start a new test.
Advertising is the same:
> Test different ad angles
> Get control ads
> Try to beat control ads with new tests
With Facebook it looks like this:
- One testing campaign using DCTs
- One control campaign with Post-IDs
Both running at broad.
> Test different ad angles
> Get control ads
> Try to beat control ads with new tests
With Facebook it looks like this:
- One testing campaign using DCTs
- One control campaign with Post-IDs
Both running at broad.
7) Attribution is a flawed concept.
Attribution is "broken" since IOS14.
But It never really worked in the first place.
A single ad is not responsible for driving conversion.
We don't control user experience and how people get exposed to our brand so we focus elsewhere.
Attribution is "broken" since IOS14.
But It never really worked in the first place.
A single ad is not responsible for driving conversion.
We don't control user experience and how people get exposed to our brand so we focus elsewhere.
8) Incremental lift and aMER
Since we can't trust Attribution, we focus on Incrementality
Does this marketing activity lift my business's growth?
To measure our paid efforts effectively, we measure our aMER (New customer rev / total ad spend)
Since we can't trust Attribution, we focus on Incrementality
Does this marketing activity lift my business's growth?
To measure our paid efforts effectively, we measure our aMER (New customer rev / total ad spend)
9) Negative Cash-Cycle
We all know that cash is king.
And a Negative Cash-Cycle is simply having suppliers "finance" the business.
We see cash in before we see cash out.
@lifeofbi has a fantastic thread with lots of ways to improve our Cash-Cycle.
We all know that cash is king.
And a Negative Cash-Cycle is simply having suppliers "finance" the business.
We see cash in before we see cash out.
@lifeofbi has a fantastic thread with lots of ways to improve our Cash-Cycle.
10) Start with Emotions and your Why
People crave authenticity, they want to belong to something bigger than themselves.
They purchase from brands that resonate with them.
a.k.a the why, what brands stands for, and do what they do.
People crave authenticity, they want to belong to something bigger than themselves.
They purchase from brands that resonate with them.
a.k.a the why, what brands stands for, and do what they do.
This is something I had issues wrapping my mind around but I instantly understood when I heard about @coltybrah & @Saint_Dici's brand.
Brands need to create an emotional connection with their customers.
Give them a community, somewhere to be.
Brands need to create an emotional connection with their customers.
Give them a community, somewhere to be.
If you want to see more tweets like that & got any value out of it...
Then hit that retweet button on the first thread! https://twitter.com/tibo_maker/status/1496156828698357770
Then hit that retweet button on the first thread! https://twitter.com/tibo_maker/status/1496156828698357770
