End Hype host Callye Keen dives into the future of e-commerce, looking at Shopify trends. It’s hard to believe that e-commerce isn’t the leading way consumers buy. Online stores are so prevalent in our lives. Especially after the past 2 years, with more businesses online. E-Commerce is on the rise, and Shopify is the platform that most direct to consumer businesses use.
Shopify recently released The Future of Commerce report, and they cover the same topics I cover in group coaching, in my Facebook group, and on this podcast. Today we’re going to talk about one of those trends, rising customer acquisition costs. A topic that includes brand messaging, brand strategy, and satisfying the market.
“Direct to consumer competition is rising. Advertising costs are skyrocketing across platforms and brand building is helping attract and keep customers.”
[01:44] Brand loyalty and product fit is a necessity
Rising acquisition costs are forcing brands to foster long-term relationships with their customers. Actually building real brands. Getting off the addiction to paid ads. As e-commerce grows, as more big brands see e-commerce as their main channel, the competition for eyeballs is fierce.
[04:01] Don’t blame iOS
We could also try to blame the iOS update and technical reasons for why ads are getting more expensive. But I'm seeing this kind of cumulative effect because as ads work less, people are spending more to get less. Instead of people leaving the system, they're spending more money. Ad expense is increasing as its effectiveness decreases.
[06:15] Long term strategy over short term gains
If you think of spending money on ads as a brand positioning exercise at the top of your funnel, in which you continue to nurture a community of customers, you're going to win.
[09:17] Measure what matters
You need to figure out how to measure what's important to you. How many customers do you need to get? What's their average order? How many customers do you need to return? Who's opening up your emails?
[10:20] Position yourself for success
The long-term optimal scenario is to not spend any money on ads. Maybe on ads for growth or penetrating a new market, but best case scenario, no ads. Your product sells because people love you. They want what you have. And when you announce that it's coming, it sells out. That's what real product market fit looks like.
[12:48] Try a marketplace
Shopify suggests using marketplaces as both sales and marketing channels for your ecommerce business. A place where you can list your product and sell it everywhere. Amazon, Facebook Marketplace, eBay, and Etsy are great examples. This doesn't have to be your home base of operations. But if you're looking at additional channels to test, if you're looking at new channels to acquire customers, these people own the eyeballs. Marketplaces are an effective marketing strategy.
If you want to build a brand it needs to be simple and memorable. Something people can remember so they tell others, but it needs to deeply resonate with who they are. You don't need everyone. The world is big.
“Everything works until it doesn't, but the brand will always work. It is an eternal strategy. So you've got to figure out how to speak to somebody. Create differentiation, create a community, curate that community, nurture that community.”