How to Gain Traction in the Jewelry Business

How to Gain Traction in the Jewelry Business

Now, you mentioned right before when you were talking
about repeat customers and how that’s another attractive
aspect of jewelry. So, how LTV
and understanding your LTV can impact so many different
aspects of your business? I know your presentation that you just did
with Adrian Morrison was about how to build
and sell a million-dollar business. So, talk a little bit
about the LTV mindset and having a good LTV and having a good understanding
of your LTV, how it benefits your business in total. Sure. I mean, I think
a couple of years ago with Facebook, anybody could be
a turn-and-burn marketer. Meaning, they’re only focusing
on getting that first sale. In those first sales,
those first customers, they could, at the time,
be widely profitable. But now, marketers are getting—
the good ones are getting smart where they’re looking at really
just sometimes even breaking even on that first sale, knowing that if they have a great brand
and they do a good job staying in communication
with the customer and they deliver a good product
that they’ll make way, way more money over the lifetime of that customer. And so, my talk in Bangkok
is going to be exactly about lifetime value of a customer
and how you can actually use this metric to determine budgets for scaling up. If I’m allocating $5
for customer support, that’s part of the lifetime
value of a customer, what’s this going to look like. We have 10 times the customers. You can break down your business
and budget with lifetime value. You can also raise venture capital
and/or sell your business when you know the lifetime value
of your entire customer base. And I actually think
that selling your business is the same thing as raising money. Somebody’s making an investment
with the hope that it’ll be worth more in the future. So, if you can show people what
your customer base is worth in the future, then you can get a really good,
accurate visualization on how much your company is worth
and the future value. And so, your key levers
when it comes to LTV, it’s got to be email, right? It’s got to be staying in touch
with that customer, making sure that the list
is kept warm and that you can dynamically
sort of reach out to people. Talk a little bit about
some of the mechanisms of LTV as it relates to ShineOn specifically, like is it a matter of keeping track
of those purchase dates and then making sure
that you’re creating ad segments based on when people bought
and waiting a couple months with a new message
that might appeal to them? Like, what are some actual mechanisms
related to jewelry that people can put in place
in order to generate higher LTV? I mean, I’d just break it. I’ll give everybody the formula that I used for LTV
when I’m there in Bangkok, but the first one is just getting
your average order value up, okay? So, I think that’s a combination
of selling a high margin product. Our top seller right now
is selling the jewelry for $49.95 with a base cost of $9.97, and this same person is using
a lot of tricks on their Shopify store to get multiple orders, okay? So, increasing the AOV,
decreasing the cost to acquire. So, the higher margin you have,
that’s the lower acquisition cost. But on the ads front,
you have to have a remarkable product and really a remarkable offer to decrease your acquisition cost
to increase LTV. And so, we’re actually
going to be offering— this is a little secret. Maybe we’ll launch it in Bangkok but we’re launching the first
made in America free plus shipping item, which is going to be crazy. The price is going to be so low
that sellers can literally give this away and they can use for building lists
and getting a ton of customers that have a high lifetime value. So, I think increase your AOV,
decrease your acquisition cost. And then, the third would really be
increasing your repeat purchase rate. So, good quality product,
I feel like we do that. But also, there are a lot of opportunities
I think people are missing for— getting the repeat purchase beyond
just Facebook Messenger retargeting and retargeting ads, we actually offer all sellers
white labeling where they can upload a coupon
and we’ll put that inside of the box. So, when customers are opening their piece
that they ordered for the first time, they’re all smiles and that’s a great time
to ask for another order with a discount. That and catalogs actually, we’re putting an
on-demand catalog service. So, we are all about in on helping people
build full-fledged brands. We’re not just about turn and burn. We’re making a heavy investment
in all these things because Shopify has an exchange now. You can sell your Shopify store. Creating and selling these stores
is going to be much more mainstream over the next couple of years. And so, we’re totally on top of it
for everyone. Very cool. Now, one of the things
that I’m really interested into someone who’s playing around
with ShineOn is that idea of traction. When you’ve built out a brand,
you think it looks good, you feel you’ve built out some designs
that are really, really tough, that are going after specific audience,
you want to spend…

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  1. How can I test a funnel for example free plus shipping?
    The important thing there is to have good upsells.
    When I have a good free product for example tennis ball and know I want to upsell a tennis racket. Maybe they don’t buy the product because a tennis racket is to expensive. Can you say something to the price differents between the products/upsells

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