I pen down my thoughts and key learning points of Andrew Faris’s Ecommerce Playbook Podcast.
In particular, he talks about the challenges of 31bits, and going through his thought process on why aren’t people buying his product.
31bits Stats – Past 30 Days
FB Ads Spend: $15.7k
But 31bits have low LTV. So if they have a 1.1 ROAS for their type of business, this type of ROAS figure is not great at all.
Why Are People Not Buying Their Product?
They have tried to feature their mission strongly (but it didn’t work).
Tried video ads and still images.
Tried brand-related creatives, tried product-related creatives.
Tested different offers too, such as discounts etc.
But it has not moved the needle at all.
Revenue per click: $1.00. It has been stagnant for around this figure for quite a long time.
Andrew Faris’s Thoughts
- Massive seasonality related factors
Especially for gifting-related products, they tend to do well during father’s day, mother’s day etc. In the off-season, the revenue per click has been $0.75.
- Product related launches
Realistically, how feasible is it for them to keep creating new products so that people will get excited with their products?
If it’s feasible, does the payoff make sense? Are we able to do it efficiently?
- Not as strong story
They have pivoted from supporting the improvised in Uganda to one in Bali. Their past customers were all resonating with the Uganda story. Now that the story has been changed, does it resonate well enough for them to return back and support the brand continuously?
Separate out RPC between new users and returning users.
– Nov & Dec: 60% more new users YOY
– RPC of new users: 16% more YOY
– RPC of returning users: 10% less YOY
It’s possible that they are actually on the right track, just that they are not there yet. They haven’t been able to find one “big” unlock moment. Perhaps they should just stay the course, and create marketing moments.
To keep doing more “tactical” marketing stuff, and wait for the “ah-ha” moment to snowball.