Next week, I'll begin a process of explaining a new project that I call "Hillstrom's Newbies".
Now that the "COVID-bump" has ended for most businesses I analyze, we need to understand what help/harm we are doing to our businesses via customer acquisition. More than half of my clients generate 40% or more of their annual sales via new/reactivated buyers. Most e-commerce businesses are highly dependent upon new/reactivated buyers for success.
What was the inspiration for this project offering?
A few weeks ago on Twitter a Professional complained that iOS changes merged with Facebook performance resulted in 50% sales declines (or more) for many clients. These companies acquired most of their customers via a fusion of iPhones and Facebook ads. We all know about the "tracking changes" Apple implemented. The downstream impact on Facebook (coupled with the end of the COVID-bump) is crushing many seven-digit and eight-digit businesses.
So I began analyzing new customers in depth for several clients. The results were enlightening. Honestly, the future success of our businesses is dependent not only on having a robust customer acquisition program, but making sure we acquire the "right" customers and not just the "easy" customers.
What will you get in a "Hillstrom's Newbie" project?
- A thorough analysis of customers acquired in the past two years.
- Analysis of marketing channels that yield good new buyers.
- Analysis of marketing departments that yield good new buyers.
- Do winning items (your best sellers) deliver good new buyers?
- Where applicable, do sold-outs and returns hurt new buyer performance?
- Are there acquisition months that harm future performance (like December - hint hint)?
- Do high prices or low prices help/hurt future performance?
- Do discounts/promotions help/hurt future performance?