Content Commerce + Growth Strategies For Online Retailers

#YPONewport @RolandFrasier
Native Commerce & Digital Marketer
Content,Commerce +
Growth Strategies For
Online Retailers

#YPONewport @your_twitter_handle
Source: InternetRetailer.com

This is a sample of bold
text on a full color slide.
This is good for quotes,stats,
dividers,etc.
Ecommerce
Ecosystem
Overview

dividers,etc.
The Native
Commerce
Triad
COMMERCECONTENT
PRODUCTS
#YPONewport LinkedIn.com/in/RolandFrasier

dividers,etc.
CONTENT
MEDIA PROPERTY
CONTESTS
ON-SITE PROMOS
CONTENT
ON-SITE 3rd PARTY ADS
ON-SITE RETARGETING
SOCIAL
EMAIL
TRAFFIC
ORGANIC SEARCH
RENTED LISTS
PAID MEDIA

dividers,etc.
COMMERCE
MEMBERSHIP SITE
SOCIAL
EMAIL
MARKETPLACESTARGETED ADS
TRAFFIC
SEGMENTEDPROMOS
LANDING PAGES
PRODUCT GRID
RETARGETING
ORGANIC SEARCH
RENTED LISTS
PAID MEDIA

Start With Your Online Strategic Goals For 2017
Profit Center Revenue Target Unit Sales Required Needs
PC #1 $XXXXXXXXX ########### ????????????
PC #2 $XXXXXXXXX ########### ????????????
PC #3 $XXXXXXXXX ########### ????????????
PC #4 $XXXXXXXXX ########### ????????????
PC #5 $XXXXXXXXX ########### ????????????
$ GOAL
Is there online profit center that doesn’t move you toward your goal?

For Each Online
Profit Center,
Do This…
Target PC Income? $
Product Price? $
Target PC Income / Product Price = # Sales Needed
# of Sales Needed #
Conversion Rate? %
(# Sales Needed) / CR = # Leads Needed
# Leads Needed #
Click-through Rate? %
# Leads Needed / CTR = # Clicks Needed
# Clicks Needed # CPC = $
# Clicks Needed x CPC = Monthly Ad Spend
Monthly Ad Spend $

For Each Online
Profit Center,
Do This…
Target PC Income? $1,000,000
Product Price? $50
Target PC Income / Product Price = # Sales Needed
# of Sales Needed # 20,000
Conversion Rate? % 25%
(# Sales Needed) / CR = # Leads Needed
# Leads Needed # 80,000
Click-through Rate? % 2%
# Leads Needed / CTR = # Clicks Needed
# Clicks Needed #4,000,000 CPC = $0.20
# Clicks Needed x CPC = Monthly Ad Spend
Monthly Ad Spend $800,000

Use The TrafficChannel Grid To Create Your MapPROFITCENTERS
TRAFFIC CHANNELS
FACEBOOK GOOGLE HOUSE LIST
CERTIFIED
PARTNERS
AMAZON DIRECT SALES AFFILIATES T&C
SOCIAL
MEDIA
SEO
HOUSE EMAIL
LIST
AMAZON AFFILIATES TRADE SHOWS DIRECT MAIL EMAIL DROPS

Howwill you get there? What’s the roadmap?PROFITCENTERS
TRAFFIC CHANNELS
XDM LAB
THE
MACHINE
T&C
CERTS &
MASTER
CLASSES
CERTIFIED
PARTNERS
BOOKS
2%
35%
20%
5%
30%
8%
FACEBOOK GOOGLE HOUSE LIST
CERTIFIED
PARTNERS
AMAZON DIRECT SALES AFFILIATES T&C
X X X
20% 50% 15% 10%2%3%
X
X X X X X X
X X X
X X X X X X
X X X X
X X X X X

Use The Promo
Calendar Wheel
To Create Offers
For The Traffic
Grid

dividers,etc.
A Better
Model

Re-Inventing Models + Markets
• BlueApron.com: Eliminate inconvenience of grocery shopping. Cut out middle-men.
Subscription meal kits.
• Honest.com: Eliminate inconvenience of shopping for hard to find natural baby
products. Subscription diapers + related products.
• Harrys.com, DollarShaveClub.com: Eliminate inconvenience + expense of drugstore
razor shopping. Subscription razors + related products.
• PrimaryKids.com: Eliminate inconvenience of shopping for kids clothing. Ignore
fashion trends. Focus on evergreen styles. Save costs of designers and inventory.

What Is Your Business Model?
• What thing that has “always been done that way” could be
done differently and better? E.g. BlueApron: pre-measured
ingredients,WarbyParker: glasses, Leesa/Casper: mattresses
• Can you cut out the middlemen or change the model to save
cost and provide better value and prices to your customers?
Jet.com adopting the Ryan Air model.

Deep Dive Your Competition’s Business
Models
• Use the Lean Canvas or Business Model
Canvas to clone their business models
• Review these models and design your own
based on the best parts of theirs
• Experiment with different variations of
business models to find the best path
• Gather ideas for tests, test and optimize

Disruption = Applying Different Business Models To Your Industry
• Landlord (Physical/IP)
• Affiliate
• PayAs You Go
• Publisher
• Franchise
• Manufacturer/Sales Rep
• Wholesaler
• Broker
• Reseller/VAR
• Retailer
• Network Marketing
• All you can eat
• Direct Seller
• Subscription

Experiment With Different Pricing Models
• Free (Ad Supported)
• Freemium
• Value Based
• Tiered/Volume
• Feature + Add-Ons
• Low Price
• MSRP/MAP
• Free + Paid Support
• “Cost +” or“x Cost”
• Portfolio/Suite
• Commodity
• Razor + Blade
• Premium/Luxury
• Discount

DifferentiateYour Online Value Curve
Step 1: Identify 3 to 7 key value factors for your industry,product or service
Step 2: Which factors should be reduced below industry norms
Step 3: Which factors should be raised above industry standards
Step 4: What new benefits should be created that are not currently offered
Step 5: Which features should be eliminated that the industry offers

DifferentiateYour Value Curve
OfferingLevel
Low
High
KeyValue Factors
Competitor
Your Product

DifferentiateYour Value Curve
OfferingLevel
Low
High
KeyValue Factors
Price
Quality
Package Newness Origin
Service Speed
Competitor

DifferentiateYour Online Value Curve
OfferingLevel
Low
High
KeyValue Factors
Price
Quality
Package Newness Origin
Service Speed
Competitor
Your Product

Differentiating To $3.3 Billion
Amazon
• Fixed Price
• FBA
• SEM: $1.35B Spend
• No Acquisition
Jet ($1B @ $50 CPA)
• Variable Price: Smart cart lets users pay less
(bundle, no returns,no credit card = pay less)
• No FBA: Bundling = > Retailer Profits
• No SEM: $20M/Month Mass Marketing
• Acquisition: Retailers can get customer info

Differentiating To $2.8 Billion
Amazon
• Warehousing +
Marketplace
• Ads: 3% of Revenue
• Not IndustrySpecific
• 33% Of Online Sales
Wayfair ($62 CPA $76 ICV)
• Storm OMS: Minimizes warehousing,
integrates with 7k suppliers/7M SKUs
• Advertising: 12% of Revenue
• Industry Specific: Carries products Amazon
does not, Investing in AR via WayfairView
• 33% Of Online Home Furnishing Sales

dividers,etc.
Domain
Strategies

Business Models: EMD  PMD  BDN
Diapers.com
WebHosting.com
CloudComputing.com
RentalCar.com
History.com
Loans.com
BoneLoss.com
OfficeSupplies.com
Plumber.com
Clothes.com

Evolve Business Models: BassProShops.com
Hunting.com Ducks.com
Archery.com
Tackle.com

Evolve Business Models: EMD  PMD  BDN
4x CTR + Lower CPC: EMD vs BDN

dividers,etc.
Leverage

OPP = Other People’s Platforms

HowCan You Create $50k/Month Of BrandedContent For $3k Per Month
With No Contractors Or Employees?

Viral: Viral Coefficient > 1.0
Stick: Acquisition > Churn.
Paid: Marginal Revenue > COCA
3 Primary Growth
Models?
How will your
existing customers
help you to get
more customers?
@RolandFrasier | Image Source: Ash Maurya

The Growth Grid
@RolandFrasier
Product Leads Acquisition Activation Retention Referrals (Per Activation) Total Revenue DPL LTV
# # % # % # % # % $ $ $
Product 1 1,000 100 10.00% 10 10.00% 1 10.00% 2 0.2 $1,000 $1 $1,000
Product 2 1,000 100 10.00% 10 10.00% 1 10.00% 2 0.2 $1,000 $1 $1,000
Product 3 1,000 100 10.00% 10 10.00% 1 10.00% 2 0.2 $1,000 $1 $1,000
Product 4 1,000 100 10.00% 10 10.00% 1 10.00% 2 0.2 $1,000 $1 $1,000
Product 5 1,000 100 10.00% 10 10.00% 1 10.00% 2 0.2 $1,000 $1 $1,000
Product 6 1,000 100 10.00% 10 10.00% 1 10.00% 2 0.2 $1,000 $1 $1,000
Product 7 1,000 100 10.00% 10 10.00% 1 10.00% 2 0.2 $1,000 $1 $1,000
Product 8 1,000 100 10.00% 10 10.00% 1 10.00% 2 0.2 $1,000 $1 $1,000
Product 9 1,000 100 10.00% 10 10.00% 1 10.00% 2 0.2 $1,000 $1 $1,000

Can You Find The
Constraint?

How To Remove
Constraints?
# Of Visitors
Per Week
# Of Leads
Per Week
# Of Trials/
Renewals
# Of Referrals
Per Week
Revenue
# Of Leads
Per Week
# Of
Customers
Per Week
Goal

Successful Leverage Plays…
• Dropbox, Uber, Harry’s, Groupon, Blue Apron =
Bribes
• One Plus, Naked Wines + Gmail = Waiting List
+ Invites
• Etsy, Udemy, Tinder = Live Events
• Facebook, Lyft + Yelp = Geo Launch

dividers,etc.
Big Mission

Big Mission Statements
• Honest.com: Create a non-toxic world that benefits the
next generation
• NatureBox.com: Be the “Netflix of food.”
• DollarShaveClub: Help guys live a smarter, more successful
life through grooming
• WarbyParker.com: Offer designer eyewear at a
revolutionary price while leading the way for socially
conscious business.

What Is Your Bigger Mission?
• What big problem you are solving through your business?
• Who will be impacted by what you are doing?
• When will you accomplish this?

dividers,etc.
Conversational
Commerce + Attack
Of The Chat Bots

The Preeminence of Messaging
Source: activate.com/WJSD: Tech + Media Outlook 2016

Apps built on top of messengers allow users to consume
content, play games and conduct transactions. Source: activate.com/WJSD: Tech + Media Outlook 2016

Order Uber Through Messenger

Shop For Handbags Through Messaging App

Shop For Pens Chatting With Amazon Echo’s Alexa

Shop For Cosmetics With Snapchat Shoppable Stories

dividers,etc.
Be Different
From Amazon

Provide Experiences (And Products) That Amazon Does Not
• Personal Touch Like StitchFix.com
• Physical Connection Like NeimanMarcus.com
• Engaging Social Media Like DollarShaveClub.com
• Unique Product Selection Like Casper.com + Leesa.com
• Interactive Mobile App Experience Like eSalon.com

dividers,etc.
Start In A Narrow
Niche,Then Move To
A Broader Market

Master One Niche,Then Expand Into Related Niches
• DollarShaveClub.com: Razors > Own The Bathroom Cabinet
• Honest.com: Baby Products > Cleaning + Personal Care
• BirchBox.com: Women’s Products > Men’s Products
• NatureBox.com: Personal Snacks > Breakfast + Wine Boxes
• Amazon.com: Books > Conquer The World

An Example Of How We Do This With Our Companies
Survivalists > Campers > Outdoor Enthusiasts
3 Million 40 Million 141 Million

dividers,etc.
Fight Margin
Compression With
Higher House
Product Mix #YPONewport @RolandFrasier

Create,Source & Sell Your Own Branded Products
• BlueApron.com: Grower Contracts > Retail Web
• Honest.com: Manufacturing To Retail Web/Retail
• WarbyParker.com: Manufacturing To Retail Web/Retail
• NatureBox.com: Manufacturing To Retail Web
• DollarShaveClub.com: Manufacturing To Retail Web

Selling Your Own Products Improves Margin Measurably
• Our average margin on drop-shipped + branded products is
20% - 30%.
• Our average margin on products we manufacture is between
50% - 70%.
• VI allows data-driven product development + short dev time

How can you use this in your business?
• Own or get exclusives on your raw materials like BlueApron.com
• Source manufacturing of your products vs. drop-shipping like
Honest.com + WarbyParker.com
• Own your own media (site) as well as using marketplaces like
Amazon.com
• Create + own your own brand like Shinola.com + NatureBox.com

dividers,etc.
Augmented
Reality

Wayfair’s Fair View App

dividers,etc.
Personalization

Use Personalized Email To Improve Conversions
Choxi.com personalizes emails
based on page visit, click data
and aggregated data.
Click to view a pair of Ugg boots
online, but don’t buy. Then, get
an email with a link to shopping
cart.

Use Personalized Email To Improve Conversions Like
Honest.com
• Emails are personalized based on page visit, click data and
aggregated data
• 3x higher conversion rate on 6 email welcome sequence
• We used BuiltWith.com to figure out that the tool that
Honest.com is using for this is…

Tool: RetentionScience.com

Use Dynamic Websites To Improve Engagement Like
Zulily.com
• Displays millions of different versions of its website
any given time
• Learns what you’re interested in and dynamically
tunes itself to you (mom sees kid’s clothes, chef sees
kitchen gadgets)
• Data analytics + shopping pattern analysis maximize
relevance, engagement, sales and repeat purchasing

ConversantMedia.comCreatesA Different Site For Each User Based On Data

What Personalized Experience Can You Deliver?
• Survey your market to learn more about them and deliver
personalized experiences based on their answers?
• Allow customers to create their own customized version of your
product?
• Use on-site behavior, buying history or aggregated data to serve
the most relevant offers, content and experience to your
customers?

Personalized Service Via App
• BlueApron.com: Choose plan, food preference, delivery day.
• StitchFix.com: Personalized stylist for women on the go.
Mobile app lets users upload pics in clothes they like and
personal stylists base selections off those pics.

Personalized Web Experience
• Personalized experience through interactive survey on site
• eSalon.com: Custom hair color blended based on user input.
Personal stylist + photo upload to assist in color selection
• Sephora.com: Virtual Artist app. Try on lipstick instantly.
• AlexAndAni.com: Chain station builder. Custom jewelry.

What Personalized Experience Can You Deliver?
Leverage your welcome survey and give
the customer the sense that offering their
information is key to a better customer
experience.

Pop-up Stores

TheStoreFront.com

dividers,etc.
Competitive
Intelligence

What Traffic Channels Do Your Competitors Use
• Run a Comparative Analysis With Your Top 4 Competitors
• Find Out What Channels They Are Getting Traffic From That You
Are Not
• Then Go Get Those Channels

Run A Social Analysis On SimilarWeb.Identify Network
Strengths,Weaknesses + Untapped Opportunities

dividers,etc.
User Generated
Content + Social
Commerce

Social Commerce + UGC = Higher Conversions
• Shoppers who interact with a UGC photo are 2x more
likely to purchase.
• UGC photos increase engagement + amplify your brand.
• UGC photos raise on-site conversion by 12%.
Source: Pixlee.com

Fastest Growing E-Retailers Drive Traffic With Social
• Zulily.com: 7% Of Total Traffic From Facebook
• WarbyParker.com: 9% Of Total Trafic From Facebook
• Choxi.com: 10% Of Total Traffic From Facebook
• NatureBox: 21% Of Total Traffic From Facebook

Remove Friction + Encourage Social Engagement…
• BlueApron.com app encourages customers to post their creations on
Facebook, Instagram + Twitter.
• Julep.com: #MavenUnboxing hashtag drove 20 million social users
over Christmas. Contests + Giveaways drive 900k social followers.
• CharlotteRusse.com: Uses #CharlotteLook hashtag + Curalate + Pixlee
• WarbyParker.com: #WarbyHomeTryOn hashtag increased shares 40%.
Warby comments on those posts increased conversions by 50%

CharlotteRusse.com drives social commerce with Curalate

AlexAndAni.com Generated 585,000 Instagram Shares
Using Olapic

Add Social Commerce To Your Marketing Mix
• Instagram: Add a link from your brand’s bio to a shoppable
gallery of your brand’s Instagram pictures. Use “Shop Now” ads.
• Facebook: Create a social storefront page tab to allow users to
access a shoppable gallery of your photos + status updates URLs
• Twitter: Drop in a URL that leads users to your product pages
• Pinterest: Use Buyable Pins and Promoted Video Pins

dividers,etc.
Search

The 25 Fastest Growing
Retailers Spend 4x More On
Paid Search

How Do Small Retailers Compete With Top IR’s Spend?
• Long-tail research + content & paid ads: SEONick.com
• Go where they are not (pop-ups, print ads, trade shows)
• Create the unique, compelling content they are not
• Focus on your story and sell products they are not

dividers,etc.
Recurring
Revenue

Fastest Growing Companies With Subscription Revenue
• BlueApron.com: Food/Recipe Bundles
• DollarShaveClub.com: Razors + Other Bathroom Products
• eSalon.com: Hair coloring products
• Honest.com: Diapers + Other Bundles
• NatureBox.com: Snack Boxes, Breakfast, Wine (coming soon)
• NakedWines.com: Wine boxes

Subscription Revenue
• Predictable cash flow
• Predictable inventory needs
• Higher valuation multiples
• Biggest Challenge = Churn
Use Welcome, Consumption + Win-back Campaigns

What Is Your Recurring Revenue Plan
• Do you have a recurring revenue component to your
business model?
• What can you do to incorporate recurring revenue and
encourage retention to reduce voluntary churn?
• What can you do to reduce churn?

dividers,etc.
Be On-Trend

Are You Riding Current Trends
• Honest.com: Natural products
• Etailz.com: Eco-Responsible products
• NatureBox.com: Healthy living + snacking
• BlueApron: Cooking/Chef TV Shows + Monthly Boxes
• Trendwatching.com: Track trends

Source: Trendwatching.com
2017
Trends

2017Trends

2017
Trends
Status

2017
Trends
Youniverse

Is Your Business Model“On Trend?”
• What are the major trends are taking place in your
current market?
• What major trends apply to your target audience?
• Does your current business model and product
lineup match up to one or more of these trends?

dividers,etc.
Strong Customer
Feedback

Continually Iterating Data-Driven Products
• DollarShaveClub.com: Shave Butter buyers were best bet
to send free samples. 100% ROI on these people.
• Graze.com: Snack box product learns from your reviews
and adjusts snack mix to avoid the types of tastes you
don’t like
• SurvivalLife.com: Knives sell better than most products

Honest.com: Provide Value + Get Valuable Feedback
• Challenge: Babies are always growing requiring manual account updates
for accurate size on diaper + baby bundles
• Solution: Honest Baby App – tracks baby’s size, weight + change
frequency. Parents can update subscriptions,track orders and earn referral
credits through the app.
• Provides Valuable Info To Parent: baby milestones, Dr.visits,sleep and
feeding habits.Providing valuable info to Honest.com & parents.

How Is Your Customer Feedback Loop?
• Let customers update account info, post reviews, leave
opinions.
• Offer live chat, telephone support and a help-desk?
• Monitoring customer feedback on the web?
• Building customer preference/taste profiles to personalize
the app + web experience?

dividers,etc.
Mobile First

Mobile Traffic +
Sales Continue
Growing

Reduce Mobile Buying Friction
• Etsy.com: 58% of
traffic from mobile +
41% of sales
• Groupon.com: 50%
of sales are mobile.
70% of all mobile
sales are via app.

Deep Linking,Biometrics + 1-ClickSales
• JackThreads.com: Deep links to product pages in mobile
app from emails and from mobile search queries
• Amazon.com: 1-Touch App Sales Via iOS Touch ID
Fingerprint
• BlueApron.com,Target Cartwheel App + Groupon.com: All
offer 1-Click sales through Apple Pay

Amazon Payments
Dramatically increase mobile conversions by
adding Login & Pay With Amazon to your products

Amazon Deep Links
Dramatically increase mobile conversions deep linking to your
product in Amazon’s Mobile App 30 Million MAUs

Are You Maximizing Mobile Traffic Opportunities?
• All your site and product pages responsive or designed for mobile?
• Do you have a mobile app or chat bot?
• Are you using app-indexing + providing deep links to the products
offered in marketing emails and from search?
• Do you offer 1-Click payments through Amazon,Apple Pay, etc.?

dividers,etc.
Bundling

The Benefits Of Bundling…
• Personalized customer experience (choose your adventure).
• Avoid decision fatigue and increase conversion rates.
• Valuable customer data + feedback for future product dev.
• Increase immediate average order value and Lifetime
Customer Value by increasing order size + price.

What product and/or service bundles can you create?
• Products that go together like DollarShaveClub.com does
with razors and shave butters and gels?
• Products that complement one another like Honest.com
does with diapers and baby wipes
• Increasing quantity + selection like NatureBox.com does.

dividers,etc.
Strong Referral
Program

BirchBox.com: Holiday Promo Copy 2x Referrals + 2x
Referral Sales…

DollarShaveClub.com: On Brand Message 2x Sales

Referral Programs
• Drive 5% - 30% of total acquisition
• Average CPA is $3
• Display + PPC CPA averages $40
• Retargeting CPA averages $10
Source: FriendBuy.com

dividers,etc.
Unified Commerce
Vs.Omni-Channel

Source: Boston Retail Partners

dividers,etc.
Free Shipping
Speedy Delivery

Shipping To Compete.
• Target.com: Free shipping for $50 minimum order. $25
outperformed significantly so minimum lowered to $25.
• BlueApron.com + StitchFix.com: Free shipping.
• Choxi.com: Partnered with ShipStation.com,ShipWorks.com
+ SkuVault.com to offer best shipping options.

Amazon Dash,Echo,Prime Now + Lockers

dividers,etc.
O2O

O2O: Online To Offline Meets Offline To Online
• NeimanMarcus.com: Site features encourage users to connect
with in-store associates. Facetime style sessions.
• Nordstrom.com: Buy online/pick-up in-store
• Amazon to launch 100 pop-up stores
• WarbyParker.com: Pop-up Stores,Yurts, School Bus Stores, Retail.

dividers,etc.
Charitable
Commerce

Charitable Commerce: Mixing Charity + Sales
• Honest.com: Supports GirlsWhoCode.com and others.
• AlexAndAni: Dedicated jewelry with sales proceeds to fight AIDS.
• DollarShaveClub.com: Colon Cancer Alliance.
• Toms.com: Pair of shoes to a child in need for each pair sold.

Warby Parker: BuyA Pair,Give A Pair

What Good Can Do Through Your Business?
• Donate one of whatever you sell for every sale you make?
• Donate a portion of the proceeds from whatever you sell?
• Find a charity that aligns naturally with your business that
your company can support?

dividers,etc.
Thank you!

Content Commerce + Growth Strategies For Online Retailers

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