Fail Proof Your 2024
🚀 Three things for a surely successful 2024!
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In this newsletter, you will find:
🔒 Fail Proof Your 2024
👉 The Other Side: John Mueller's Take on AI Images vs. Stock Photos
âš¡ Charting the Marketing Cosmos in 2024: Stellar Insights for Marketers
2024 ECOMMERCE STRATEGIES
🔒 Fail Proof Your 2024
Insights From Nik Sharma
In 2024, eCommerce brands are pushing beyond traditional metrics and methods to drive growth, improve brand reputation, and increase repeat sales. Here's a dive into three pivotal strategies outlined by industry experts, each backed by compelling statistics.
1. Understanding Contribution Profit
 Net Contribution Profit is highlighted as a more crucial metric than traditional CAC and ROAS.  Â
      - This approach takes into account every expense in the P&L for a comprehensive profitability analysis.
      - It's not just COGs and marketing costs; it also includes payment processing fees, return costs, and more.
Stats: Estimates suggest that businesses focusing on Net Contribution Profit tend to see a more accurate picture of profitability, with some experiencing up to a 30% more precise assessment of financial health.
Expert Insight: Ben believes that optimizing for Net Contribution Profit gives a more realistic and actionable view of financial performance.
Focusing on Net Contribution Profit helps businesses understand the true cost and benefit of every dollar spent, leading to more effective financial strategies.
2. The Value of TV Ads
TV, especially remnant ads, is an underrated but potent channel for brand growth.Â
      - Remnant TV ads can cost as little as $1 to $3 CPM on prime networks.
      - Connected TV (CTV) targets users directly, albeit at a higher $10-30 CPM, but can be more effective.
Stats: Brands utilizing TV ads have seen an increase in branded search traffic and an overall CPA decrease on digital channels due to the halo effect. Some have experienced budget increases of 3-4x within 18 months of leveraging TV ads.
Expert Insight: TV ads are praised for expanding brand awareness and lifting performance across all advertising channels.
TV ads, while traditional, still offer significant value in creating brand awareness and lifting other ad channel performances through a comprehensive and engaging approach.
3. Going Deep on Customer Experience
CX is identified as a critical focus for brand retention and growth.  Â
      - CX leaders should be involved from the start, influencing all touchpoints.
      - The right CX strategy involves a detailed org chart with specialized roles from tech to community management.
Stats: Companies investing in comprehensive CX strategies have seen increases in customer retention rates by up to 25% and a significant reduction in negative feedback.
Expert Insight: Jess Cervellon advocates for a detailed and proactive approach to CX, noting its foundational impact on every part of the brand.
Deepening focus on customer experience not only enhances brand reputation but also drives tangible growth through improved customer loyalty and satisfaction.
As we look to 2024, the insights from industry experts emphasize the importance of understanding deeper financial metrics, leveraging traditional yet powerful advertising channels like TV, and investing in a comprehensive customer experience strategy. These approaches are set to drive sustainable growth and strengthen brand positioning for fast-growing brands.