Tactical & Practical
Unscripted Ranting: NOT ALL PRODUCTS DESERVE AD SPEND
Feb 20, 2025
The hosts dive into the importance of evaluating which products truly deserve advertising budgets. They discuss how focusing on high-value items can enhance customer acquisition and retention. The conversation shifts towards maximizing long-term customer value by analyzing performance data. Insights on shifting from short-term gains to sustainable growth strategies are shared. They ultimately stress that businesses should be strategic in their marketing efforts to avoid wasting resources.
12:40
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Quick takeaways
- E-commerce businesses should prioritize advertising for products that yield the highest lifetime value and repeat purchase rates.
- Investing in long-term customer relationships through strategic product support leads to sustainable growth and higher overall profitability.
Deep dives
Identifying Product Value
Not all products in an e-commerce store are worth the investment in advertising and promotion. Certain products can yield significantly higher repeat purchase rates and lifetime value compared to others. For instance, a watch that drives a higher percentage of repeat customers contributes more positively to overall profit over time than a perceived bestseller that may not have the same potential. Understanding the long-term contribution of each product helps in prioritizing where to allocate time, resources, and ad spend for optimal growth.
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