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Brisbane Shopify Meetup - 7th June 2017
The Brisbane Shopify Meetup on June 7, 2017, attracted over 300 attendees and featured speakers from various businesses discussing strategies to optimize product pages and customer acquisition costs. Holly Cardew emphasized the importance of product descriptions, user reviews, and photography in increasing online sales, while Nik Mirkovic and Alex Tomic shared insights on balancing customer acquisition cost and lifetime value. The event also included a Q&A session and opportunities for networking among participants.
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Brisbane Shopify Meetup - 7th June 2017
- 1. BRISBANE SHOPIFY MEETUP BRISBANE MEETUP Wednesday7th June 2017 #ShopifyMeetup
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- 3. #ShopifyMeetup WhoisAttendingthisShopifyMeetup? Over 300 peopleon the guest list. 73% 23% 4% Sells Online or Offline Myself Helps Merchants Sell Online No Response
- 4. #ShopifyMeetup AbouttheHosts Reload Media isa Shopify Experts agency, having worked with dozens of Shopify and Shopify Plus sites on all facets of their digital marketing, including Google AdWords, SEO, Pay Per Click, Social Media and more.
- 5. #ShopifyMeetup AbouttheDrinksSponsor zipPay allows yourcustomers to buy now and pay later on their own terms. By adding their love it, have it, pay later messaging in your customer journey, including product pages, you'll see on average, an increase in conversion of 20% and increased order size of 35%. Empower your customers with an "always interest free digital wallet" today by offering zip at checkout online and instore. Find out more: www.zippay.com.au
- 6. #ShopifyMeetup Tonight’sSpeakers Our speakers andpanel for tonight are: Holly Cardew Pixc Nik Mirkovic & Alex Tomic HiSmile Josh Newport Shopify
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- 8. Optimise Your ProductPages for Increased Sales Holly Cardew, Founder Pixc.com
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- 15. Poor product pages are losingyou online sales @hollyccc
- 16. @hollyccc What You Needon Your Product Page Product photos - multiple types Detailed product descriptions Reviews Trust badges Social share buttons
- 17. @hollyccc Your Product Photos| The Hero Image
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- 22. @hollyccc Be consistent withyour product photos Bigger images are better Optimize your for different devices
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- 24. @hollyccc Shoot on alight colour
- 25. Shoot next toa natural light source @hollyccc
- 26. Use a Sweepand Tripod @hollyccc
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- 30. Great product descriptionscan decrease returns Helps with organic search Increases confidence for customers when shopping @hollyccc
- 31. User reviews canincrease sales by 2.5x @hollyccc
- 32. User reviews increasetrust User reviews increase social engagement User reviews can increase sales @hollyccc
- 33. Also include Do youoffer the local currency Do you have trust badges Add social sharing buttons Add the shipping options @hollyccc
- 34. Cool idea totry… Moving Gifs @hollyccc
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- 36. #ShopifyMeetup Nik Mirkovic &Alex Tomic HiSmile
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- 39. The Cost forCustomers A Balancing Act
- 40. To go forwards,let’s first go back...
- 41. Three Key Elementsof a Startup Team Product Market
- 42. Three Key Elementsof a Startup Team Product Market
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- 44. A Viable BusinessModel But what does this look like?
- 45. Customer Acquisition Cost How muchit costs to acquire a new customer Customer Lifetime Value The ability to monetise a customer over their lifetime CAC LTV
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- 47. Less of this... Costto acquire a customer (CAC) Monetisation (LTV)
- 48. More of this... Monetisation (LTV)Costto acquire a customer (CAC)
- 49. But what aboutthe conversion rate? It only tells you part of the story
- 50. Business 1 Conversion Rateof 10% Business 2 Conversion Rate of 1.5% vs.
- 51. Business 1 Conversion Rateof 10% Business 2 Conversion Rate of 1.5% vs. Average Order Value of $10 Average Order Value of $99 Average customer subscribed 8 months of the year for an LTV of $800 / year One-off purchase so LTV is $10
- 52. Business 1 Lower Revenueper Visitor Business 2 Higher Revenue per Visitor 100,000 visitors = $100,000 100,000 visitors = $125,000
- 53. Key Takeaway Conversion rateain’t everything!
- 54. “Sooooo...how do Icalculate CAC & LTV?” A few ways - but here is a basic start point
- 55. Customer Acquisition Cost Totalcost associated with acquisition Total new customers
- 56. Customer Acquisition Cost $10,000/ month on AdWords/Facebook Ads 200 New first time customers / month CAC = $50 Remember that not all of your monthly costs for the month will directly attribute to the total amount of new customers that month
- 57. Customer Lifetime Value* AverageOrder Value * Average Repeat Purchase (Lifetime) OR Average Order Value * Number of Repeat Sales * Average Retention Time *This is a very basic calculation of lifetime value - you can look for more advanced versions if you wish, what’s important is that you are consistent with your method.
- 58. Customer Lifetime Value $120* 2 (number of average purchases per year) * 2 (number of years customer is retained) CLV = $480 (Revenue) Now multiply by your Gross Profit Percentage (e.g) 50% CLV = $240 (Gross Profit)
- 59. One last thing... Perhapsthe most important
- 60. LTV to CACRatio Using the Lifetime Value and Customer Acquisition Cost from our example... $240:$50 LTV: CAC = 4.8:1 LTV:CAC
- 61. “Yeah great Josh,but what is a good ratio?” Thanks for asking...
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- 63. ● Less than1:1 - you’re on the road to oblivion - uh oh ● 1:1 - you’re just breaking even on every acquisition or potentially losing money ● 3:1 - the perfect level - solid business model and growth ● 5:1 and above - awesome! But you’re under investing in acquisition and could be growing faster Some Scenarios
- 65. If you wantto learn more: https://www.shopify.com/enterprise/stop-trying-to- increase-your-conversion-rate http://www.forentrepreneurs.com/startup-killer/ Or just grab me later this evening (or find me on LinkedIn)
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- 68. #ShopifyMeetup StayinTouch! To stay inthe loop for future Brisbane Shopify Meetup events, you can: o Join the “Brisbane Shopify Meetup” group on Meetup.com o Follow the Reload Media twitter account @reload_media o If you registered for tonight, we’ll email you when the next one is on. See you at the next event!
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