In this engaging conversation, Jay Wright, CEO and Founder of Ecommerce Equation, shares his journey from finance to e-commerce. He discusses the crucial balance between in-house teams and agencies, emphasizing that smaller brands should build internal capabilities for key channels. Jay also offers actionable strategies for crafting effective Black Friday promotions that enhance customer retention rather than relying solely on deep discounts. Discover how to maximize profitability and excitement during the holiday season!
Successful founders exhibit high personal agency, taking ownership of their growth and resourcefully tackling business challenges to drive success.
Smaller brands should prioritize building in-house capabilities for essential marketing channels rather than relying on agencies for effective scaling.
Strategically planning Black Friday promotions focused on profitability and customer retention, rather than just deep discounts, is crucial for sustained growth.
Deep dives
Key Aspects of Hiring
When hiring for an organization, it is essential to consider three main aspects: strategy, optimization, and implementation. Strategy involves understanding what actions are effective and determining the best practices for success within the business. Optimization refers to analyzing data to make adjustments to improve those strategies whenever necessary. Implementation focuses on executing these strategies, which can be complex if businesses expect individuals to undertake multiple roles, especially in mid-market firms where resources may be limited.
Transition from Agency to In-House
Transitioning from using an agency to building an in-house team can provide brands with more focused attention on their specific needs. In-house teams allow organizations to have employees dedicated solely to their brand's performance, which can enhance responsiveness. High-caliber professionals may be costly, often requiring additional support staff, while agencies can pool talent that benefits from experiences across various brands. However, the choice between the two largely depends on a brand's goals, budget, and current growth stage.
Importance of Personal Agency for Founders
The level of personal agency that business founders exhibit can significantly impact their success. Successful founders tend to take full responsibility for their challenges, using resourcefulness and accountability to navigate obstacles. For example, a founder who engaged deeply with educational resources and coaching sessions was able to significantly increase her business revenue due to her determined approach. On the other hand, those who do not take initiative often fall short in meeting their business goals.
Effective Q4 Planning Strategies
Preparing for Q4 requires significant planning, as many companies generate a substantial portion of their annual revenue during this period. Strategies should include demand planning, allocating inventory, and refining marketing offers well ahead of key sales events like Black Friday. Black Friday promotions should not come as a surprise; rather, they should be calculated for profitability by assessing potential offers' impact on margins and customer acquisition. Employing metrics and detailed preparation ensures that businesses not only meet revenue targets but also maintain healthy profit margins.
Navigating Sales Strategies During Promotions
During promotions such as Black Friday, brands should consider maintaining their existing offers rather than drastically increasing discounts, which can harm margins and customer acquisition costs. Implementing strategies such as gift-with-purchase offers can enhance customer value without compromising profits. Additionally, employing techniques like prize-with-purchase can create excitement and boost conversion rates significantly without traditional discounting. Ultimately, brands that focus on sustainable acquisition and retention strategies while maximizing profitability will thrive during peak shopping seasons.
📈 Ecommerce Equation - Business Coaching, Consulting & Community
🔗 https://www.ecommerceequation.com.au/
In this episode of Chew on This, Ash is joined by Jay Wright, CEO and Founder of Ecommerce Equation, an Australian-based growth and education business for brands. The two discuss the challenges of scaling businesses, whether to hire agencies or build in-house teams, and the best practices for Black Friday sales.
Highlights
🧠 The most successful founders possess a high degree of personal agency, meaning they are resourceful, take ownership of their growth, and are action-oriented.
💸 Smaller brands with a turnover of $1M-$10M should build in-house capabilities for core channels like Google and Meta, which is often more effective than relying on agencies.
🎯 When hiring agencies, it’s crucial to meet the team, define a clear scope of work, and understand the agency’s satisfaction metrics to ensure accountability and transparency.
🎁 The importance of carefully crafting Black Friday offers that maximize profitability and customer retention rather than focusing solely on deep discounts.
📈 Implement strategies like gift with purchase, prize with purchase, and exclusive product launches to incentivize customers and generate excitement during the holiday season.
0:00 - Intro
1:45 - Jay's background in finance and transition to e-commerce
3:11 - What is Ecommerce Equation?
6:10 - What separates high-performing brands from others
9:03 - iOS updates impacting business operations
10:42 - Market fit and creating value for customers
12:36 - In-house team vs agencies
19:05 - Delegating tasks effectively
24:19 - Selecting the right agency
25:03 - Clear scopes of work and tracking satisfaction metrics with agencies
26:57 - Setting KPIs to evaluate agency performance effectively
30:12 - Setting realistic expectations with agencies
32:11 - Using ads for business growth
34:05 - Q4 prep and demand planning
36:05 - Over-incentivizing discounts for acquisition
39:01 - LTV for planning promotions
41:14 - Creative offers vs discounts for retention
44:01 - Managing shipping costs effectively during sales
47:01 - Final chew
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