Revenue is vanity, profit is sanity

Revenue is vanity, profit is sanity

The new financial year is here! Now is a great time to review your numbers and we covered exactly which numbers you should be tracking and measuring in our latest podcast

One point I really wanted to reiterate is this: 

Revenue is vanity, profit is sanity.

We often see business owners bragging about their $2million dollar brand. But what does this actually mean…?

What they usually mean is they generated $2million dollars in revenue. And while this is great, revenue doesn’t mean a damn thing unless you’ve got profit left at the end of the day. 

I would much rather own a company that turns over $500k and is left with a net profit of $100k, than a company that turns over $1million dollars but is only left with $20k net profit at the end of the day.

So many business owners are left with little or no profit at the end of the year – or worse – they are left with an unexpected tax bill that they can’t pay. 

This is why when our students join eComm Ignitor the first thing we get them to do is track and measure their important numbers. And more often than not our online store owners realise that they aren’t making much profit (if any). They essentially have a hobby. And while this realisation sucks, it’s so important to understand because you can’t fix a problem you don’t know exists. 

Having your finger on the pulse with regards to your numbers is essential to having a successful business. So instead of focusing on the metrics that don’t matter, focus on those that do. 

  • Instead of focusing only on how many people are coming to your site, track and measure how many of those actually convert into a sale. 
  • Instead of focusing only on how many Facebook fans or Instagram followers you have, track and measure how many of those people actually engage with your brand. 
  • Instead of focusing only on how many sales you make, track and measure how many of those are repeat purchasers. 
  • Instead of focusing only on your revenue, track and measure how much profit is actually left at the end of the day. 

You can read our blog which details exactly which numbers we recommend you track and measure in order to have a successful online store. 

So, instead of focusing solely on revenue, turn your attention to those numbers that actually matter. And remember, revenue is vanity, profit is sanity. 

Written by Megan Winter

Megan is an award-winning marketer and has worked with some of the fastest-growing eCommerce brands in the world.

Megan loves helping ethically-produced, heart-centred, soul-driven online store owners to make more income and achieve more impact. 

Goals alone will get you nowhere

Goals alone will get you nowhere

I recently read the book Atomic Habits by James Clear. My sister gave it to me but I’d heard about it many times before. Layne Beachley recommended I read it when we were in Fiji together. Nic McClanachan referenced it at a recent Business Chicks retreat. You know those times when you hear something again and again. It’s like the universe whispering, then speaking, then yelling: READ THIS. 

Ok, so this book is awesome and I highly recommend it to anyone who wants to build better habits to build a better life. 

There’s so many nuggets of gold in this book and I’m going to share just one in today’s blog: 

“Forget about goals”

When I first read this, I tilted my head and screwed up my nose and thought “huh?”. Because every business course or training I’ve been a part of, and every business book I’ve read, they all talk about setting goals. We even reference setting goals in our program, eComm Ignitor. 

But… I get what he’s saying. He’s saying goals alone will get you nowhere. 

And I have to agree. 

He says: 

“Forget about goals, focus on systems instead”

So why are systems more important than goals? 

1. Winners and losers have the same goals. 

Read that again. 

Winners and losers have the same goals. 

For me, this sentence was the most powerful one in the entire book. Mind. Blown. 

Surely, every Olympic athlete has the same goal of winning a gold medal. 

But only one person in each event actually achieves their goal. 

So… the goal itself is not the defining factor. 

2. Achieving a goal gives you fleeting satisfaction

Let’s say your goal is to have 2 weeks of content scheduled in advance at all times. You might have a burst of motivation and schedule out your content for the next 2 weeks. You’ll feel good and… then… out of nowhere those 2 weeks have flown by and you haven’t even thought about the next two weeks. This is because you don’t have a system in place. As we say in eComm Ignitor, if it isn’t scheduled it won’t happen. 

You need more than a goal to achieve the outcome you want. So, you achieved your goal once, but achieving the goal gives you fleeting satisfaction and you’ll wind up back where you were before you achieved the goal in no time…. Unless you have a system in place. 

3. Goals can create a yo-yo effect 

Have you ever run a half-marathon? Or know someone who has? They train for months then as soon as they cross the finish line… they stop training. This is the ultimate example of the yo-yo effect. 

Instead of being someone who is training for a half-marathon, can you be a runner who has a system of running everyday? 

So there you have it, a few reasons why we should forget about the goals and focus on the systems. What do you think? Has this changed your perspective on goals? Would love to hear your thoughts. Comment and let us know 

 

Written by Megan Winter

Megan is an award-winning marketer and has worked with some of the fastest-growing eCommerce brands in the world.

Megan loves helping ethically-produced, heart-centred, soul-driven online store owners to make more income and achieve more impact. 

Ep. 25 – Getting Clear on Your Ideal Customer to Sell More on Your Online Store

Ep. 25 – Getting Clear on Your Ideal Customer to Sell More on Your Online Store

SHOWNOTES

You don’t know who your ideal customer is.

Or you have an idea but it’s not as clear as you think it is.

It’s an uncomfortable truth for many online sellers so, in this episode, we’re going to help you define your ideal customer avatar. We also talk about how being specific with your target audience can help you create better human-to-human connections in your business. Get over your FOMO—fear of missing out on a sale—and niche down!

If you enjoy this episode, please subscribe, rate, and share the show – it would mean the world to us. There’s more to come and we’re looking forward to sharing how to sell more on your online store in our podcast.

 

Episode Highlights:

  1. About ideal customer avatars and why you need one [00:46]
  2. A story about a student who did the Ignitor course but struggled with Facebook ads because she skipped the module on audiences [03:33]
  3. If you try to talk to everyone, you’ll relate to no one [05:08]
  4. Narrow down your audience to be as specific as possible [05:46]
  5. Doing this doesn’t exclude other people from buying from you [07:23]
  6. Your marketing can be more engaging and unique if you niche down [08:42]
  7. If you try appealing to everyone, you also risk attracting the wrong people [09:24]
  8. Dive deep into the demographics, vibes, beliefs, fears, and desires of your ideal customer avatar [11:23]

Links mentioned:

How we turned $41k into $1.3million

How we turned $41k into $1.3million

One of our recent campaigns provides evidence that creative messaging paired with clever deliverability can indeed produce outstanding results. 

This campaign generated $1.3 million in direct revenue from an expenditure of $41,000, which is a return on ad spend of 32,000%.

Keep reading to learn what we did to achieve this result. 

I’m going to break it down into the issue, the opportunity, the solution and the results. 

The issue 

Prior to Covid this brand relied on expos and tradeshows to get the majority share of exposure for their product. As “everything was cancelled” in 2020 they wanted to increase their sales via their eCommerce platform. 

The challenge of using digital platforms to sell a premium product at a relatively high price point, is that customers aren’t able to touch and feel the product.  

The opportunity to deliver the brand experience and product messaging to customers digitally, meant a test-and-measure approach could be adopted. 

The opportunity for the brand to reach more potential customers, without attending expos (which are typically demanding of resources, time and energy) was very appealing.  

The opportunity 

The opportunity to use digital advertising to deliver unique messaging to potential customers depending on their demographic and geographic profile, as well as their interactions with the brand’s digital platforms meant for more personally relevant messaging. 

The primary objectives of the campaign were to:

  • increase sales
  • increase total revenue, and
  • achieve the highest return on expenditure possible.

The secondary objectives of the campaign were to:

  • increase website traffic
  • increase new website users, and 
  • increase average order value.

A budget of $50,000 was allowed for the campaign and a target of 1000% return-on-expenditure was set (10x ROAS or return-on-ad-spend).

The solution

To overcome the challenges and achieve the campaign objectives, first we researched competitor activity, analysed the expo-experience, identified available audiences and undertook a market review. 

We then developed a strategy that communicated the value proposition of the brand to the identified target audience using engaging and unique creative. 

We analysed existing advertising data on the client’s Facebook Ad account and determined that the best performing creative featured the brand’s owner. We hypothesised that potential customers craved human connection and wanted to get to know the real people behind the brand they were buying from. 

We analysed competitor activity and reviewed the advertising messages that were competing for the brand’s potential customers’ attention by using the Facebook Ads Library to see what Facebook and Instagram Ads were running. We also reviewed and analysed competitors’ organic social channels. We found that the predominant messaging throughout was focused around value-for-money and their content was advice-focussed and it seemed as though they were positioning themselves as an authority. 

We identified the primary target market by getting super clear on their ideal customer avatar. You can read more about getting clear on your ideal customer avatar here. 

We developed a strategy to take advantage of the opportunities, overcome the challenges and to meet the objectives outlined. 

The strategy would: 

  • Uniquely target the identified market with messaging specific to their demographic profile and their interactions with the brand’s website;
  • Take potential customers on a buying journey that introduced them to the brand and nurtured them right through to a purchase; 
  • Position the brand as relatable and approachable;
  • Include creative that clearly communicates the value proposition, the brand’s offering and how the brand differentiated from competitors; 
  • Include a value proposition that would cut through the competitors messaging and identify strongly with the target audience;
  • Include real, raw and relatable creative in the content mix in order to capitalise on the identified gap in competitors authority-positioned marketing;
  • Be agile and responsive to the results produced, determined by preset success metrics. 

In order to achieve this we first identified the various stages of the purchase cycle. These are, in ascending order, awareness, interest, education, decision, action, loyalty and advocacy. You can read more about our Facebook ads funnel here. 

 

We then mapped out a digital marketing funnel with the sections of Top of funnel, Middle of funnel and Bottom of funnel. We then aligned the purchase cycle with phases of the digital marketing funnel:

The awareness stage of the buying cycle aligned with Top of the funnel, interest and education aligned with the Middle of the funnel, and decision and action aligned with the Bottom of the funnel. 

We then assigned an identified audience to target at each phase of the funnel based on interactions taken with the brand’s eCommerce platform:

  • Top of Funnel messaging would be targeted to a cold audience; people who had not visited the website before. 
  • Middle of Funnel messaging would be targeted to a warm audience; people who had visited the site but not added to cart yet. 
  • Bottom of Funnel messaging would be targeted to a hot audience; people who had added to cart but not purchased. 

The strategy would use the available Facebook Ad media placement tools in order to target the ads to the identified audiences and test and measure various creatives. 

In order to maximise the targeting capabilities of the Facebook Ads tools, the most relevant targeting options for each phase of the funnel were identified. 

3 different audiences were identified for Top of funnel targeting. These audiences were:

  1. interest based audience;
  2. a Facebook ads lookalike audience; and 
  3. a broad target audience. 

The interest based audience included people who fit into the primary and secondary target audience based on their Facebook profile, online activity and purchasing behaviour. 

The Facebook Lookalike audience included people who had similar attributes to those people who had purchased from the brand previously. 

The broad target audience included people who fit into the target audience parameters based only on age and gender.

Middle of Funnel messaging would be targeted to people who had visited the site but not added to cart yet. This audience would be created by using the custom audience options available. 

Bottom of funnel messaging would be targeted to people who had added to cart but not purchased. This would be created by using the custom audience options available. 

Each phase of the funnel would have unique success metrics:

  • Click-through-rate and cost-per-click for Top of Funnel; 
  • Add-to-cart for Middle of Funnel; and 
  • Purchase for Bottom of Funnel. 

We then established a set of ad creative with varied copy and images to test and measure in each stage of the identified funnel. 

Each level of the funnel has a different job.

  • We determined the creative in the Top of funnel would introduce people to the brand and the product. 
  • The Middle of Funnel creative would focus on problem-solution based messaging as well as product demonstration. 
  • The Bottom of Funnel creation would be used to overcome any purchase objections or uncertainties that potential customers may have. 

A mixture of produced and raw creative would be tested.  You can read more about the types of video creative we are loving right now. 

The results

The objectives set out were successfully achieved resulting in a very happy client and a very happy delivery team.

The primary objectives of the campaign were to increase the number of sales, increase the total revenue and achieve the highest return on expenditure possible. 

A budget of $50,000 was allowed for the campaign and a 1000% return on advertising expenditure was the target. 

31x ROAS for our eCommerce client

Between 1 Jan 2020 and 30 April 2021 a total of $41,361.86 was spent on the campaign, this directly resulted in 7,643 transactions with a revenue value of $1,315,913.44, which equates to a 3181% return on advertising expenditure. 

In the same period the company experienced 21,397 transactions on the website with a total revenue of $3,697,746.28. This was an increase of 179.48% and 187.56% respectively from the same date range as the year prior. They did no other paid advertising in that period. 

The secondary objectives of the campaign were to increase website traffic, increase new website users and increase average order value.

Comparing the date range of the campaign [1 January 2020 – 30 April 2021] with that of the same date range of the previous year [1 January 2019 – 30 April 2020] the results are as follows: 

  • Website users increased 37.08%
  • New website users increased by 36.41%
  • Website sessions increased 36.88% 
  • Average order value increased by 2.89% 
  • Conversion rate increased by 104.17% 
  • Total revenue increased 187.56% 

Feedback from the client has been that they feel as though collaboration opportunities have increased, as well as stock planning and management, and Facebook and Instagram ads will also be utilised to gain feedback from their identified target audience around product development. 

The brand has also expanded their team, increased their warehouse space by and been able to give to those in need in the form of donated product and cash.

We love our clients and we hope this case study gives you inspiration to get amazing results for your online store too. 

 

Written by Megan Winter

Megan is an award-winning marketer and has worked with some of the fastest-growing eCommerce brands in the world.

Megan loves helping ethically-produced, heart-centred, soul-driven online store owners to make more income and achieve more impact. 

How to set up FAQ messages on your Facebook Page

How to set up FAQ messages on your Facebook Page

We recently had a great question from one of our students:

“How do I set up Frequently Asked Questions for my customers to access via my Facebook page?”

There are a couple of reasons why FAQs are great:

1. It makes it easier for your customers.

By including FAQs on your page you make it fast and easy for your costumes to get the information they are looking for, and therefore reduces barriers to purchase. Say someone was ready to buy a pair of jeans from you, but they had a quick question about the sizing… if they could get an answer instantly rather than waiting a few hours (or days) for you to come online, they are more likely to checkout.

2. It makes it easier for you. 

Rather than answering the same questions over and over, you can set up FAQs to decrease the amount of time you spend responding to customers about info they can get without having to wait for you. 

Your FAQs could include information about your: 

  • Sizing
  • Shipping 
  • Pre-orders and restocks
  • Returns

uberkate has set up the following questions: 

1. First, go to Page Settings, then click on Messaging and Set up automated responses:

2. Then, go to Automated Responses and click on Frequently Asked Questions. Insert the Question and your Automated Response.

You can add call-to-action buttons and attachments if you like. You can add multiple FAQs by clicking Add a Question. 

Now, on desktop the FAQs will appear like this: 

However, on mobile people need to click on the menu button to see the the FAQs (and most people don’t know how to do this – so see below for a suggested work-around):

3. You can also set up an Instant Reply telling people they can access the frequently asked questions by clicking on the menu button:

4. Note: the full Question won’t be displayed on mobile if it’s too long.

So instead of saying “How do I work out my Ring Size” I would suggest “What’s my ring size” or “Working out my size” so that the entire question is displayed. 

 

So if you want to make life easier for you and your customers, set up FAQ messages today. Comment and let us know when you’ve done this so we can share the love. 

Written by Megan Winter

Megan is an award-winning marketer and has worked with some of the fastest-growing eCommerce brands in the world.

Megan loves helping ethically-produced, heart-centred, soul-driven online store owners to make more income and achieve more impact.