Create micro branding to build a fruitful and scalable e-commerce business
If you are an affiliate or an advertiser, you know the digital world has changed. Strategies working a couple of days ago, today are obsolete. Costs raise, while results stay the same and you have to find innovative solutions to keep your revenues stable.
In this article I will tell you how you can create an e-commerce business both fruitful and long-lasting. To reach this goal we will leverage your skills to create micro-brands.
Before founding uDroppy, the e-commerce platform designed to help digital entrepreneurs handle the most complex operations, I was an affiliate and an advertiser. I know the ads world and I know that today working with Facebook Ads is challenging.
The CPM (Cost Per Mille) keeps growing because of:
- advertising cost rising on Facebook as the brand wants to raise the revenues;
- growing competition. More and more people start venturing in the Adv market. This means new affiliates, advertisers and networks to compete with;
- huge brands entered the digital world and started investing high budgets in ads. This makes your work very hard if you have a limited budget;
- affiliates and advertisers keep using old strategies. As the web becomes every day safer and bans grow, you have to develop new schemes;
- lower trust of people into products sold online through ads.
Facebook and the web have changed, but don’t worry, you have all the skills and knowledge to evolve and start a new business. If you want to beat your competition and create a long-lasting, fruitful asset you have to share VALUE.
Clients are looking for value and not a product. If you can take advantage from this, you can create a real, profitable business that will last in time. This is why you have to create something that will leave a sign. If you make a positive impression on a client he will come back to your store and you will keep that client for a longer time.
My business partner, Luca Borreani, explains it well in this article. Today, the Customer Lifetime Value (CLTV) is mandatory for every business. First, because selling to a client is easier than selling to a prospect. And then, because monetizing a client more times means reducing your expenses.
I am sure that, until today, you converted as much users as possible and that was it. You started all over again for another campaign without thinking about retention. Yet, using your leads, you can keep your clients and raise your revenues.
Let’s see how:
Imagine you have a CPA (Cost per acquisition) of $10 and every user bring a revenue of $30. At this point your profit is $20. To say it in numbers: 30–10=20.
But what would happen if you were selling a subscription instead of a one-shot product? Let’s say, a year subscription?
Keeping the same CPA (10 dollars) we would have:
30x12 (revenue multiplied for months) — 10 = $350.
Can you see the convenience? If you monetize a client in time you can raise your profit because you pay the acquisition only once.
To reach this goal you have to create a brand.
How to create a brand
First things first, what does it means to create a brand?
It means selling a value and pushing users to identify with something.
Think about how many times you prefer a brand over another. It happens everyday to everyone. We make this choices because we feel closer to a determined company. Behind a brand there isn’t a product, but a community or a movement. Something we perceive as related to our life, passion or way of being. By creating a brand you can influence people too. You can inspire them (think about Nike) or move them. I am sure that now you are thinking that reaching that kind of level is impossible, but it is not.
Nike started from the bottom as you are doing. And, being a marketer, you have all the skills and knowledge you need to win the competition.
So, what do you need to create a brand?
- First, you need to know how to sell emotions and only then a product;
- You have to sell quality products (this is why you need the right partner). If you don’t give quality, clients are not satisfied and don’t come back;
- Promote your brand.
The best way to do brand promotion is to use the brandformance strategy. As the name say is a mix of branding and performance.
Let’s start with branding. You need to develop both like and engagement campaigns. In this way you will encourage the participation of clients thanks to your content. You have to make them understand that you are not selling a product, but an emotion, a benefit, a value that will improve their lives.
When it comes to performance, the winning option is the Touchdown Strategy. This strategy is the result of years of work and experience gathered in affiliate marketing, advertising and e-commerce.
You can download it for free here!
It develops in three different stages:
- First, you have to create an e-commerce store. Today, thanks to the great variety of platforms (e.g. Shopify) it’s easy and quick. Once you have the store you start importing products. In this moment you don’t have to focus on a niche. You can experiment and follow the field you prefer or you know better. When you have a dozen of products you can start launching campaigns to gather data and understand what works. The best products are those with a ROAS higher than 4.
- When you have all the data you can choose the best product among those tested. Let’s suppose you opened a motorbike accessory store in the first step. Now you see that motorbike gloves have a ROAS higher than 4. This is why you open a second store with gloves and you test which model performs better. If in the first phase you used dropshipping, the low-risk business model, now you can know think about bulk or virtual warehousing. The bulk strategy consists in buying great quantity of products and ship them to your warehouse. In this way you reduce both costs and shipping times to your client. By buying higher quantities you reduce the unit costs. And you can have direct control over the customer shipping process. Virtual warehousing is a service of uDroppy. We offer this feature to our clients, so that they can buy great quantities of products to save money without renting a warehouse. We will store them in our logistic centre and then ship them to the client when you receive an order. Both strategies allow you to give a better customer experience to your clients.
- In the third phase you create your micro brand. You take the most performing product and you create a single product store with your brand. At this point you have to find a partner able to offer you both quality products and customization. A partner like uDroppy. We can give you quality and we can print your logo both on the product and the packaging. We can also change product specifications to meet your needs or create a product from scratch. In this way you will have a complete personalization. Now you will have a store that will sell one branded product. It will give your customer quality and fast shipping. To do this, you will start renting warehouses in the key areas of your business. Thanks to the data gathered with campaigns, you know where your clients live. This allow you to optimize your sales process, customer experience and business. You can use the leads to re-monetize your clients with organic traffic. You can leverage email marketing, newsletters, discounts and bundles. The Facebook Bot is very useful because it has an opening rate of 98%! Or you can use your social media accounts to create engaging content. Thanks to these you can prompt your clients to share their feedback and promote your brand free of charge.
By creating a micro-brand you will build a long-lasting, fruitful business. You will be able to monetize clients multiple times during the year and raise your revenue. Thanks to this, you will be able to raise the CPA, outbidding the competition. Despite an initial higher cost, you will know that clients will buy more with time and you will earn more.
Creating a brand means creating an asset you can sell. Or, if you think bigger, it can lead you to an offline store. That in the future can turn into a franchising.
As you can see, the only limit is the sky!
In this article I gave you all the information you need to create a fruitful business, fast and scalable.
Creating a micro-brand will raise your profit and allow you to create trust relationships with you clients. They will come back to your store, purchasing again, and sharing a positive WOM (Word of Mouth).
uDroppy is the perfect partner. We can follow you throughout your business life offering you dropshipping solutions, virtual warehousing and bulk. We provide you owned quality products that we can customize. We ship all over the globe, automating all the complex processes, giving you time and saving you from worries. These are the reasons why we are the most complete platform on the market. We have the power and expertise to help you to create a long-lasting, fruitful business.
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