Slides from the Brisbane Shopify Meetup on 7th June 2017. Special guest speakers are Holly Cardew (Pixc), Nik Mirkovic and Alex Tomic (HiSmile), and Josh Newport (Shopify).

1. BRISBANE SHOPIFY MEETUP
BRISBANE
MEETUP
Wednesday 7th June 2017
#ShopifyMeetup

2. #ShopifyMeetup
Welcome!

3. #ShopifyMeetup
WhoisAttendingthisShopifyMeetup?
Over 300 people on the guest list.
73%
23%
4%
Sells Online or Offline
Myself
Helps Merchants Sell
Online
No Response

4. #ShopifyMeetup
AbouttheHosts
Reload Media is a 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 your customers 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 and panel for tonight are:
Holly Cardew
Pixc
Nik Mirkovic & Alex Tomic
HiSmile
Josh Newport
Shopify

7. #ShopifyMeetup
Holly Cardew Pixc

8. Optimise Your Product Pages
for Increased Sales
Holly Cardew, Founder
Pixc.com

9. @hollyccc

10. @hollyccc

11. @hollyccc

12. @hollyccc

13. @hollyccc

14. @hollyccc

15. Poor product pages
are
losing you online
sales @hollyccc

16. @hollyccc
What You Need on Your Product Page
Product photos - multiple types
Detailed product descriptions
Reviews
Trust badges
Social share buttons

17. @hollyccc
Your Product Photos | The Hero Image

18. @hollyccc
Quicker Viewing

19. @hollyccc
Multiple Angles

20. @hollyccc

21. @hollyccc
In Context Photos

22. @hollyccc
Be consistent with your product photos
Bigger images are better
Optimize your for different devices

23. @hollyccc
Quick Photography
Tips

24. @hollyccc
Shoot on a light colour

25. Shoot next to a natural light source
@hollyccc

26. Use a Sweep and Tripod
@hollyccc

27. Product Descriptions
@hollyccc

28. @hollyccc

29. @hollyccc

30. Great product descriptions can decrease returns
Helps with organic search
Increases confidence for customers when shopping
@hollyccc

31. User reviews can increase sales by 2.5x
@hollyccc

32. User reviews increase trust
User reviews increase social engagement
User reviews can increase sales
@hollyccc

33. Also include
Do you offer the local currency
Do you have trust badges
Add social sharing buttons
Add the shipping options
@hollyccc

34. Cool idea to try… Moving Gifs
@hollyccc

35. Any Questions?
hello@pixc.com
@hollyccc

36. #ShopifyMeetup
Nik Mirkovic & Alex Tomic HiSmile

37. #ShopifyMeetup
TheHiSmileStory

38. #ShopifyMeetup
Josh Newport Shopify

39. The Cost for Customers
A Balancing Act

40. To go forwards, let’s first go back...

41. Three Key Elements of a Startup
Team
Product
Market

42. Three Key Elements of a Startup
Team
Product
Market

43. The Fourth Element

44. A Viable Business Model
But what does this look like?

45. Customer
Acquisition Cost
How much it costs to acquire
a new customer
Customer
Lifetime Value
The ability to monetise a
customer over their lifetime
CAC LTV

46. It’s a Balancing Act

47. Less of this...
Cost to
acquire a
customer
(CAC)
Monetisation
(LTV)

48. More of this...
Monetisation
(LTV)Cost to
acquire a
customer
(CAC)

49. But what about the conversion rate?
It only tells you part of the story

50. Business 1
Conversion Rate of 10%
Business 2
Conversion Rate of 1.5%
vs.

51. Business 1
Conversion Rate of 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 Revenue per Visitor
Business 2
Higher Revenue per Visitor
100,000 visitors = $100,000
100,000 visitors = $125,000

53. Key Takeaway
Conversion rate ain’t everything!

54. “Sooooo...how do I calculate
CAC & LTV?”
A few ways - but here is a basic start point

55. Customer Acquisition Cost
Total cost 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*
Average Order 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...
Perhaps the most important

60. LTV to CAC Ratio
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...

62. 3:1

63. ● Less than 1:1 - 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 want to 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)

66. THANK
YOU!

67. #ShopifyMeetup
Panel Question Time!

68. #ShopifyMeetup
StayinTouch!
To stay in the 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!

69. #ShopifyMeetup
Thanks for Coming!