Tag: advertising

Learnings

Determine which advertising channels result in incremental sales

Chris Labs

Do a geo-location holdout. This idea is basically to stop either one advertising channel or one region of the country for a certain period of time. During that period, everything else should stay the same. By doing that, you might find that a channel that on paper is very profitable (Google search ads let’s say) is actually causing zero incrementality. In other words, regardless of whether you spend on Google search ads or not, you make the same amount of sales. You might find that some channels are underperforming (being credited more sales than they actually generate) and other channels … Continue reading Determine which advertising channels result in incremental sales

Learnings

Where you should excel depends a lot on your pricing strategy

Chris Labs

Let’s say you are a chinese seller on Amazon and your differentiating factor is that you undercut your competitors. In this case, you should focus on producing that t-shirt for a low cost. And that should be your absolute priority. In this other example, where you are now selling a 400$ t-shirt, the price to manufacture the t-shirt almost doesn’t matter at all. Instead, you should excel at marketing and desirability. – Mike Beckham (SimpleModern), (around 10mins) E018: How To Price Your Products. A Deep Dive Special. Continue reading Where you should excel depends a lot on your pricing strategy

Learnings

When you discount, don’t discount across the line of colors… Discount a few select ones.

Chris Labs

What they have seen, is that people will still get the color that they want. But this tactic will spike the traffic, spike the interest, people will come in and buy the color they want even if it’s full price. That works very well with things like Prime day as it allows you to benefit from the traffic without losing all your margins. – Mike Beckham (SimpleModern), E006: Marty Wholesome Goods, De-Risking Talent, Data & Testing, Gamers, Panzerism, Prime Day & More. Continue reading When you discount, don’t discount across the line of colors… Discount a few select ones.

Learnings

Run a *BRAND NAME* day at the same time as Prime Day

Chris Labs

The concept behind it is that you have a ton of people that are in the mindset of spending online. Marty from Wholesome Goods runs a day for 4 days, from one day prior to Prime to one day after Prime. It runs in parallel with Prime day. They send 2 emails a day for 4 days straight. They made 1.065 M$ in incremental sales above their baseline revenue for that 48 hours period on their DTC website alone. BE CAREFUL: You cannot call this your Prime Day sale… This will get flagged by Amazon. One of the operators call … Continue reading Run a *BRAND NAME* day at the same time as Prime Day

Being CEO

How to structure Marketing Department

Chris Labs

It is such an important role, the role of media buying. You do not want all your business to rely on one or very few individuals. On the podcast Operators, Marty gives this structure recommendation. Basically, the department should be divised into two groups: – Marty, E006: Marty Wholesome Goods, De-Risking Talent, Data & Testing, Gamers, Panzerism, Prime Day & More. Continue reading How to structure Marketing Department

Learnings

How to frame a deal with The Rule of 100

Chris Labs

A simple way to figure out which discount frame seems larger is by using something called the Rule of 100. If the product’s price is less than $100, the Rule of 100 says that the percentage discount will seem larger. For a $30 T-shirt or a $15 entrée, even a $3 discount is still a relatively small number. But percentagewise (10 percent or 20 percent), that same discount looks much bigger. If the product’s price is more than $100, the opposite is true. Numerical discount will seem larger. Take a $750 vacation package or the $2,000 laptop. While a 10 … Continue reading How to frame a deal with The Rule of 100

Learnings

Promotional offers that seem surprising or surpass expectations are more likely to be shared

Chris Labs

This can be because the actual deal itself exceeds expectations (for example, the percentage off is so unbelievable) or because the way the deal is framed makes it seem that way. Quantity limits work the same way. Retailers sometimes create limits around the number of a given discounted item a given customer can buy. “One per household” or “Limit three per customers.” You might think that by making it harder for people to get as many as they want these restrictions would hurt demand. But they actually have the opposite effect by making the promotion seem like an even better … Continue reading Promotional offers that seem surprising or surpass expectations are more likely to be shared