The Most Underrated Marketing Strategies (feat. Jess Chan)
Dec 13, 2023
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Jess Chan, founder of Backbone and retention marketing expert, discusses transitioning from CMO to entrepreneur, the emotional intensity of running an agency, and the journey from agency to product business. She emphasizes the value of failure, long-term growth, and building strong foundations for success. The conversation explores the challenges of entrepreneurship, optimizing for exit in software business, and mastering customer retention marketing through email and SMS.
Transitioning from service-based agency to product business requires adaptability and a focus on scalability.
Comparison of service-based business models to software businesses highlights the ease of pivoting and finding market fit.
Balancing the long-term potential of software companies with the stability of agency models is crucial for business success.
Deep dives
Evolution from Agency to Software
Jess Chan recounts her journey from founding Longplay Brands, an agency that scaled to 7 figures in revenue in 18 months, to transitioning towards a product business called Backbone. Reflecting on the intense pressure of scaling the agency quickly and the emotional toll it took, she realized the need for a more sustainable and scalable approach. The idea for Backbone emerged from systemizing the agency's training processes, leading to the realization of a software solution.
Malleability of Service vs. Product Businesses
Jess highlights the flexibility and malleability of service-based businesses like an agency, likening it to play-doh that can be molded to fit client needs. In contrast, she compares software businesses to a block of ice, less adaptable but adjustable with development costs. This comparison emphasizes the ease of pivoting and finding product-market fit in service models compared to product businesses.
Learning Appreciation for Service Models
Through her experience with Longplay Brands, Jess rediscovers her appreciation for service models, recognizing the ease of finding product-market fit and the malleability of offerings. She contrasts the compounding nature of software businesses with the immediate profitability of service models, emphasizing the importance of understanding the distinct strategies required for success in each business model.
Software Companies vs. Agency Business Models
The discussion compares the long-term potential of software companies versus agency business models. Software is likened to an asset with the potential for significant wealth accumulation over time, while agencies are viewed as more stable but limited in growth. The emphasis is on balancing both business models to maximize success and wealth creation.
Retention Marketing Strategies in E-Commerce
The conversation delves into retention marketing strategies in e-commerce, highlighting the importance of customer retention for long-term business success. Retention marketing is presented as a subset of overall customer retention, focusing on automated email flows and customer lifecycle management. Key strategies include investing in automated flows like welcome and post-purchase nurture, emphasizing email and SMS channels, and avoiding common pitfalls of overemphasizing design and testing in the early stages of business growth.
Welcome to another episode of the Build In Public Podcast.
Today's episode features Jess Chan, founder of Backbone, a platform designed to streamline email marketing for small eCommerce teams. She is one of the top retention marketing experts, with expertise in retention marketing through email and SMS.
She previously founded Longplay Brands, a full-service retention & lifecycle marketing agency for DTC e-commerce brands. Jess bootstrapped the agency scaling to 7-figures in revenue in the first 18 months.
In this interview, Jess and KP discuss various topics related to entrepreneurship and e-commerce such as:
00:00 Intro 02:18 Inflection Points and Drive to be an Entrepreneur 05:22 Transition from CMO to Entrepreneur 06:49 De-risking the Decision to Become an Entrepreneur 09:18 The Pressure to Succeed and the Importance of Long-Term Thinking 11:00 The Value of Failure and Learning from Mistakes 12:19 The Perception of Risk in Entrepreneurship 15:16 The Emotional Experience of Being an Entrepreneur 17:12 The Importance of Long-Term Growth and Avoiding Short-Term Thinking 19:20 Building Strong Foundations for Long-Term Success 21:21 The Journey from Agency to Product Business 24:21 Discovering the Opportunity for Backbone 28:21 The Emotional Intensity of Running an Agency 30:39 Appreciating the Malleability of Service-Based Businesses 34:41 The Slow Compounding of Software Businesses 35:56 The Role of Agencies and Services in Cash Flow 36:23 Optimizing for Exit vs. Agency Model 42:02 Retention Marketing Strategies 46:33 Mistakes in Email Marketing 48:27 Building a Strong Foundation for Business 51:50 Ideal E-commerce Business to Purchase 55:05 Rapid Fire Round
Build In Public Podcast is an interview show where KP chats with ambitious startup founders, CEOs, and top Internet creators to unpack their stories, insights, and lessons.
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