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Alex Brown - ECML Barcelona Presentation - July 2019

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DFO CMO Alex Brown presents at iStack's July 2019 event in Barcelona on eCommerce, choosing the correct product, broad vs. niche products and processes to obtain product desirability.

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Alex Brown - ECML Barcelona Presentation - July 2019

  1. 1. Sink Or Swim Choosing the Best eCommerce Product Alex Brown Chief Marketing Officer
  2. 2. About Me 🌴🌴 Grew up and live in San Diego, CA 🎓🎓 Business degree from USD 💣💣 First business? Unsuccessful website company 2008 – 2012 Sports Marketing Account Executive 2012 – 2017 Director of Marketing, Instant Checkmate & TruthFinder 2017 – Present CMO of DFO Global Performance Commerce
  3. 3. About DFO is A performance agency and network An eCommerce technology provider A product and brand builder Today’s Focus
  4. 4. Why is picking the right product so important? Run downhill, not uphill: If you have the right product, it sells itself! This means your marketing can be simple, compliant, and effective, yielding… • Higher CTRs • Better Ad Engagement • Better Conversion Rates With the right product, scaling and optimization is used to take sales to the next level (rather than salvage profitability)
  5. 5. Not Picking the Right Products: The Fallout Tons of Unsold Inventory Terrible CPA’s Lost Time
  6. 6. Why Do People Buy Products? • Solves A Basic Need Is this food or shelter? • Lowest Price, Best Value I can’t pass this up! • Avoid Pain* Pepper spray, supplements, & home security systems • Gain Pleasure We buy things that make us feel good • Niche Identity We want to fit in with our tribe • “Girl Scout Cookie” Effect Your purchase helps others Remember People buy based on emotion and justify their decisions with logic after the fact.
  7. 7. VS.BROAD NICHE Vegan, Hippie, Anti-Vax MomsMoms
  8. 8. Broad Pros Cons • Major Scale • Cheaper CPMs • Less Burnout • Lower CVRs • Competition/Pricing • Easily Ripped
  9. 9. Niche Products Pros Cons • Evangelists • Spending Power • Community • Limited Reach • Must Be Authentic • Pricier Traffic
  10. 10. Testing Products: The Old Way Have a Good Idea Invest Time on Creative Invest Money on Inventory Roll Dice on the Media 1 3 2 4 We Did It This Way! • We had good ideas, so it worked . . sometimes • When we picked losers, we sat on tons of inventory • We tried to optimize our way out of trouble – and set a ton of media dollars on fire for our efforts
  11. 11. DFO’s Product Rollout Process: Fast Track We test products using a 3-stage process called Fast Track The goal? Invest the minimum amount required (from a development and investment standpoint) at each stage to see how the market responds to our product. This allows us to rapidly test products that meet our core criteria, kill losers fast, and invest incrementally in products that show the most promise. Time Money
  12. 12. Criteria For Consideration 🤑🤑 Does this product have a high perceived value? 💳💳 Likelihood a customer will buy more than 1 unit 📦📦 Is it small, lightweight, and easy to ship? 👪👪 Does it have universal appeal? Male/Female, Old/Young, etc. ✅ Is it compliant with traffic sources? 🛒🛒 Are there clear upsells? 🌎🌎 Will this product sell globally? Just a few items from the list. . . Before a product can enter Fast Track, it must pass our key criteria survey. There are 25 criteria on this list Each product gets scored 1-10 on how it meets each key criterium We have several key decision makers in the company take the survey – so there is less bias Product must get at least a 70% score to be considered for Fast Track
  13. 13. Fast Track: Phase 1 – Gauge Interest Criteria • Media Spend: $500/product • Broad Targeting: ex. USA, M/F 35+ • 4 Unique Ads Process – Dry Testing 1. Send traffic to a SIMPLE FUNNEL 2. Allow user to SELECT # OF UNITS & INITIATE CHECKOUT 3. Once they add to cart, fire fb pixel and inform them that we are out of inventory 4. No credit card is taken, no payment processed This can be done via ClickFunnels or Wordpress template. Goals 1. Unique Link CTR > 5% 2. Positive Comment Sentiment 3. 1.5x Target CPA Add to Carts We are only looking for interest in this phase If goals are met, product moves to Phase 2
  14. 14. Fast Track: Phase 2 – Conversions Process 1. Add merchant processing 2. Acquire minimum quantity of products (drop-shipping an option) 3. Develop custom lander (presell or advertorial) 4. Develop custom FB video ads 5. Spend $2,500/product ($500/day for 5 days) 6. Test 4 different ad sets • Two creatives per ad set, including one new video and best creative from Phase 1 7. Optimize ads and presell after 1-2 days Goals 1. Presell CTR above 25% 2. Ad CTR above 5% 3. Conversions around 1.5x target If there are no sales after $300, pause and review If goals are met, product moves to Phase 3
  15. 15. Fast Track: Phase 3 Process 1. Add in upsells 2. Conduct pricing split tests (if necessary) 3. Further optimize landing page 4. Spend $2,000/product ($500/day for 4 days) • 2 creatives per ad set, including best ad from Phase 2 and 1 optimized version 5. Optimize campaign after 1-2 days Goals 1. Profitable Conversions: enough that campaign can be scaled to other traffic platforms (search, native, display) 2. Presell CTR stays above 25% 3. Ad CTR stays above 5% If goals are not met, product goes back to optimization team If goals are met, offer is fully built
  16. 16. Alex’s Short List for Success 💵💵 Will it save a customer money? 🤯🤯 Can it be classified as a disruptor? i.e. this tiny company is disrupting a $17 billion industry 😡😡 Does it go against an industry people despise? i.e. cable, internet, airlines, lawyers, etc. 🌱🌱 Does it have an eco or charity component to it? 🎯🎯 Is your target CPA between $40 - $70? If your product meets most or all of the above – it’s most likely a winner
  17. 17. Thank You! Alex Brown Chief Marketing Officer DFO Global Performance Commerce

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