Provided by Triple Whale
Want to take your brand from seven figures to eight figures in 2023? Here are the five keys to scaling your e-commerce business with success.
People buy from whom they like…but they return for people they trust. The days of faceless corporations are ending and creator/people-led brands are the future.
For example, Ezra Firestone does an amazing job of conveying personality with his brand Boom, even down to his product inserts.
He originally partnered with Cindy, a model, to be the face of Boom. But after she sadly passed, he made the Boom ambassadors the face of the brand. Boom leverages their ambassadors on their webpage, landing pages, emails and Facebook Group — just about anywhere they can to humanize their brand.
Another way to humanize your brand is to look at your buyer journey — ads, website, landing pages and email flows — to see where you can inject personality. There’s nothing exciting about receiving a standard, auto-response, transactional Shopify email. Consider the difference between these two emails:
“Hey, John, thanks for your purchase.” Does this build trust or love for your brand? Not so much.
“Hey, John, our small team located here in Denver thanks you for your purchase! Jenna, our product manager, is reviewing your order right now.” Notice the emotional connection you can build with this easy upgrade!
Step 1 action item: Take a look at your buyer journey and figure out how you can humanize your brand.
People love to feel like they’re a part of something bigger than themselves. Community is a key lever for separating an e-commerce store from an e-commerce brand. The best part is, building a community can be 100% free. Consider building something like a “VIP” Facebook Group.
Redline Steel, a home decor brand, has built a masterful community strategy. Once a customer purchases from the brand, they’re invited to an exclusive VIP Facebook Group. The founder of the brand posts consistently in the group, is super engaging and develops personal relationships both directly and amongst customers.
Redline even takes it to the next level for customers who buy five or more items from the store, inviting them to a separate Facebook “Elite Group.” More interactive in this group, the founder sources feedback from his best customers on everything from new product launches to brand advertisements. Where some massive brands pay millions of dollars for focus groups, Redline Steel is both fostering a brand-advocate community and collecting customer data for free. The finishing touch? Everyone who joins the Elite Facebook Group is sent a personal signed certificate from the founder. Talk about building a connection!
Step 2 action item: Build a VIP Facebook Group for 1x purchasers and post content in the group daily.
Most people know the Pareto Principle, also known as the 80/20 Rule. Taking this a step further, by looking at the top 20% of your top 20% of customers, you’ve dug into your top 4% of consumers.
Shopify makes it very easy to find these customers in the Loyal Customers report. You can sort by transaction volume or dollar amounts and also view customer contact information. Once you have their contact information, send them a survey or meet with them. They are the most credible source of data you can get.
Setting up 30-minute, one-on-one interviews with these customers will allow you to get to know them on a personal level. Developing customer personas, profiles or avatars for the customers that complete these interviews can help direct your future marketing efforts to these top-tier buyers. They are the pinnacle of your customer long-term value!
Step 3 action item: Pull the Loyal Customer report in Shopify and interview one high-value customer per week.
Simply put, this means getting a great COO, CFO and CMO. If you can’t afford them, look into fractional options. Alternatively, you can seek out a talented project manager, finance manager or growth partner.
This is a real investment in your future. Cheaper is not always better!
Step 4 action item: Figure out what area is your biggest constraint (marketing, operations or finances) and hire an expert to help you.
Eventually, you’ll need to hire a CFO if you haven’t already. But in the meantime, you still need to understand your numbers.
A lack of cash flow is what kills most e-commerce businesses, not a lack of profit. Understand your gross margins and contribution margins and how they impact your breakeven Cost Per Acquisition (CPA) and/or Return on Ad Spend (ROAS). Review these on a monthly basis. Get a daily email of your bank account’s cash in and cash out, a weekly cash flow forecast and a monthly cash flow forecast at a minimum. You want a consistent daily, weekly, monthly and quarterly pulse to see how cash moves in your company.
Step 5 action item: Study your business finances (cash flow, P&L and balance sheet) and product finances (gross margins, contribution margins, etc.) to see what you can impact the most.