Why a Strong Brand Still Needs Repeat Buyers — Transcript

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1. 0:00Hopefully that was inspiring.
2. 0:01>> [laughter]
3. 0:03>> At least it was clear.
4. 0:04>> I didn't realize when Ed gave me this
5. 0:06card it was going to involve public
6. 0:07speaking, but let's do this.
7. 0:09>> Opportunities for growth.
8. 0:11>> I'm Jessica. I sell badass women's
9. 0:13clothing to badass women.
10. 0:15>> Sweet.
11. 0:15>> We do we did 2 million revenue last year
12. 0:19up from 1 million and I'm on track for 3
13. 0:20million this
14. 0:21>> Amazing.
15. 0:21>> this year.
16. 0:23I'd like to be at 10 million in revenue.
17. 0:25Um the way I went from one to now going
18. 0:29to be three is by basically I went from
19. 0:31printing on t-shirts to creating my
20. 0:34actual cut and sew product line and
21. 0:36manufacturing everything overseas.
22. 0:38>> Okay.
23. 0:38>> Um so I think what's stopping me is
24. 0:42scaling my ads and I'm also not sure if
25. 0:44I should be focusing on products because
26. 0:47that's what helped me grow so much over
27. 0:48the last year.
28. 0:49>> Mhm.
29. 0:50>> Um I feel like
30. 0:51>> You mean just making good stuff?
31. 0:53>> What was that?
32. 0:54>> Making good stuff.
33. 0:55>> Yeah, I mean I I spent I've been
34. 0:58building this brand since 2015. I pretty
35. 1:00much spent seven years building a brand
36. 1:02with a really shitty product.
37. 1:03>> Yeah.
38. 1:04>> And now I have a great product. And so,
39. 1:07you know, it seems to be going well, but
40. 1:09I just I want to know how to scale to 10
41. 1:12million.
42. 1:13>> Yeah. So
43. 1:15there's kind of the I'll say the
44. 1:16short-term way and the long-term way.
45. 1:18I'm guessing you want to do the
46. 1:19long-term way. Um
47. 1:21No, cuz the short-term way doesn't get
48. 1:22you there long-term. That's kind of the
49. 1:23point of that. Yeah.
50. 1:25Cuz the short-term way like you can go
51. 1:26from zero to a million a month in 60
52. 1:28days in a business that's e-commerce if
53. 1:30you're just a straight
54. 1:31called direct response, you know,
55. 1:32marketing media arbitrage specialist,
56. 1:35right? You're just looking at paper
57. 1:37click and looking at all the different
58. 1:38percentages across the funnel and you're
59. 1:40just arbitraging what's my cost and
60. 1:42you're just run and you're just blowing
61. 1:43traffic through a funnel where you turn
62. 1:44a dollar into a dollar and a half and
63. 1:45you just run as much as you can throw.
64. 1:47There is for sure a speed path.
65. 1:49Those businesses never really get to the
66. 1:51big numbers because at scale CAC has to
67. 1:54have some force that makes it go down
68. 1:56cuz CAC only goes up over time unless
69. 1:58you have strong word of mouth, repeat
70. 2:00business.
71. 2:02And so you need the brand like the the
72. 2:04reason that I in my opinion, I think the
73. 2:06e-commerce guys are the best at branding
74. 2:07because they have to be because the
75. 2:08ticket's so low. And so they have to
76. 2:10figure out ways to get revenue
77. 2:11retention, have lower CTRs at scale, and
78. 2:13a lot of that obviously depends on the
79. 2:15product. And so if you're just selling a
80. 2:16bunch of I'm not saying you are,
81. 2:17but I'm saying if you were
82. 2:18>> Not anymore.
83. 2:20>> [snorts]
84. 2:20>> Um
85. 2:22then the person buys it and they never
86. 2:23buy again. And so you just acquired it
87. 2:25and you're like, "You made We don't get
88. 2:27customers to make sales, we make sales
89. 2:28to get customers."
90. 2:30That's the shift.
91. 2:31And so if we think about it from that
92. 2:33perspective, then the quote long-term
93. 2:35play, we talked about TikTok Shop
94. 2:36earlier for supplements, the exact same
95. 2:38playbook applies for you, which is you
96. 2:40need to have a very large because the
97. 2:41way that Andromeda works now, which is
98. 2:43the new Facebook update or meta update
99. 2:45for ads, is you need a ton of
100. 2:47creative, which right now you probably
101. 2:48aren't able to create or keep up with,
102. 2:49I'm guessing.
103. 2:51And so you need to have an army that's
104. 2:52making that for you. And so my
105. 2:54recommendation would probably be finding
106. 2:56like two to three people that really
107. 2:58embody the badass women
108. 3:01values that you have, do some sort of
109. 3:03deal with them so that now collectively
110. 3:06you've got many badass women that are
111. 3:08kind of figureheads, and then you can
112. 3:09use them to leverage to get the
113. 3:11affiliate army of the people that you'll
114. 3:14reach out to that are micro nano
115. 3:15creators. So we're talking like 10 to
116. 3:1750k in terms of followers on like
117. 3:19TikTok, and then have them
118. 3:22go live, pitch the stuff, make content
119. 3:23about it because they love it.
120. 3:26That's the play.
121. 3:27>> I was thinking that I shouldn't try to
122. 3:30do an additional channel until I hit
123. 3:32that 3 million, but do you feel like
124. 3:34it's worth building it out now even just
125. 3:36cuz that's where I'm headed?
126. 3:37>> So the additional channel meaning you're
127. 3:40on meta right now and it's
128. 3:40>> Like I'm getting 80% of my sales from
129. 3:42ads currently, especially cuz we're
130. 3:45scaling and growing. So you know, it's
131. 3:47>> Yeah.
132. 3:48>> That's more higher percentage now.
133. 3:49>> It's a it's an interesting It's a great
134. 3:51question. Um Um
135. 3:56You could
136. 3:59In order to scale the ads on the current
137. 4:01channel, you need more creative.
138. 4:02>> Mhm.
139. 4:03>> So, either you're going to have to build
140. 4:04out the creative yourself and then
141. 4:05you'll hit the next wall once you cap
142. 4:06out on that creative. Uh
143. 4:09or you partner with a mondo influencer
144. 4:11like Kim Kardashian does, starts
145. 4:12promoting your and all of a sudden
146. 4:13you're everywhere, right? That works. Um
147. 4:15or you create an army that's horizontal.
148. 4:17>> Mhm.
149. 4:17>> So, either you go like vertical
150. 4:18strategy, horizontal strategy, but it's
151. 4:20very likely that one of those is going
152. 4:22to have to be the next path um to
153. 4:24getting to where you want to go,
154. 4:25assuming that the product is good and
155. 4:26you're getting good repeat purchases. I
156. 4:28would say the big red flag above all
157. 4:30else is make sure that you have repeat
158. 4:31purchase and that your email back end is
159. 4:33dialed.
160. 4:34>> Yeah.
161. 4:34>> What percentage of revenue is coming
162. 4:35from email?
163. 4:38>> 20.
164. 4:39>> Probably and you're
165. 4:43It's a little on the low end.
166. 4:44>> Mhm.
167. 4:44>> You could have like you probably want to
168. 4:46be at like 35.
169. 4:48Um cuz if you're going like this and I
170. 4:49can understand it, but you're not going
171. 4:50like that fast. So, it should be a
172. 4:53little higher than it is right now and
173. 4:54all of that's incremental margin.
174. 4:57So, that would like I would like if I
175. 4:58was to say order of ops, it's like I
176. 5:00want to fix email marketing on the back
177. 5:02end to make sure that we're getting more
178. 5:03sales.
179. 5:04I want to make sure that we're actually
180. 5:06getting revenue retention, so people are
181. 5:07buying or buying again. Do you have some
182. 5:08sort of drop schedule that you do?
183. 5:10>> Yes.
184. 5:11>> Okay, so you have that. So, I want to
185. 5:12make sure that we're getting repeat
186. 5:13purchases so we can look at how many
187. 5:14people like what percentage of people
188. 5:15are buying second and third items.
189. 5:16>> Mhm.
190. 5:17>> Big thing number two. And then big thing
191. 5:19number three is now that I have these
192. 5:20two kind of things dialed, now I know my
193. 5:22my trail TV is, my lifetime gross profit
194. 5:23per customer, and now I can be very
195. 5:25strategic about what my incentives are
196. 5:27to bring more people in to make more
197. 5:28content so I can feed the brand.
198. 5:30>> Okay. Thank you.
199. 5:31>> If you're not getting as many leads as
200. 5:32you want and your business is demand
201. 5:34constrained, [music] meaning you could
202. 5:35service more customers than you
203. 5:37currently have, then this is for you.
204. 5:39So, marketing is changing [music]
205. 5:40and I think ACQ tends to be on the
206. 5:42bleeding edge of this stuff. We
207. 5:43certainly spend the money
208. 5:44to do it, but we also build custom
209. 5:46software and we pay amazing vendors and
210. 5:48very expensive people to figure out the
211. 5:50system that we have right now, and I
212. 5:51want to share it with you kind of open
213. 5:52kimono style. If you're not getting as
214. 5:53many leads as you want,
215. 5:54boy, do I have the thing for you. Click
216. 5:56below, book call, and uh
217. 5:58hopefully I'll see you in Vegas.