SE4 EP43: Retention, Storytelling, and Brand Equity are Key to Growth - Shoelace • Klaviyo:BOS

2X eCommerce Podcast · with Reza Khadjavi · October 4, 2019 · 18 min

Summary

The era of cheap paid advertising is over. This episode argues that DTC brands must shift their focus to retention, brand building through storytelling, and strategic use of paid ads for mid-to-bottom-funnel activities. Learn how to adapt your marketing strategy to the rising cost of customer acquisition and cultivate lasting customer relationships.

Key takeaways

• The 'golden age' of cheap Facebook and Google ads for DTC brands is over; profitable first transactions are now rare, necessitating a pivot in marketing strategy.
• Brand building through storytelling is crucial for retention. Focus on who your customer is and how your product transforms their life, rather than just product features.
• Utilize paid advertising strategically for mid-to-bottom-funnel retargeting rather than relying on it solely for top-of-funnel acquisition.
• Prioritize understanding your customer journey to deliver the right marketing messages at each stage, fostering deeper relationships and improving LTV.
• Invest in tools like Klaviyo to personalize customer communication and build meaningful relationships based on customer cues and behavior, which directly impacts retention and brand loyalty.

Themes

Topics covered

Episode description

In this interview with Reza Khadjavi, CEO of Shoelace. He tells us why the era of paid advertising arbitrage is over and how marketing should evolve with the rising cost of CAC and the need to serve the right messages at the right stage of their customer journey. Here is a summary of what was discussed: The early 2010s was the golden age of Facebook and Google advertising which gave rise the direct-to-consumer boom Brands made profitable sales on the first transaction which is very difficult to do now Brand is important to drive retention How do we do brand? Storytelling (Outdoor Voices tells its customers that they do not need to be athletic to use their gear) What role does paid advertising play? How do you use paid advertising at the mid-funnel and bottom-funnel with effective retargeting Get started with storytelling - who is the customer and how does their life change when they buy from us? ----------- FACEBOOK GROUP...CONTINUE OUR CONVERSATION The eCommerce GrowthAccelerator Mastermind Facebook Group has just launched. It is a community... ✔️ for founders and experts passionately involved in eCommerce ✔️ for the truly ambitious wanting to make an impact in the markets they serve ✔️ for those willing and open to help and share with other members Here is where to apply to join the Facebook group >>http://bit.ly/ecommercefb<< ----------- SPONSORS: This episode is brought to you by: Klaviyo If you’re looking to grow your business there is only one way—by building real, quality, customer relationships. Most marketing software will claim they do this, but will never deliver on their promises. You need to demand more from your marketing software that’s where Klaviyo comes in. Klaviyo helps you build meaningful customer relationships by listening and understanding cues from your customers, allowing you to easily turn that information into valuable marketing messages. That’s why 10,000 innovative brands have switched to Klaviyo. What’s the

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Frequently asked about this episode

What does this episode say about dtc strategy?

The 'golden age' of cheap Facebook and Google ads for DTC brands is over; profitable first transactions are now rare, necessitating a pivot in marketing strategy.

What does this episode say about paid acquisition?

Brand building through storytelling is crucial for retention. Focus on who your customer is and how your product transforms their life, rather than just product features.

What does this episode say about brand & content?

Utilize paid advertising strategically for mid-to-bottom-funnel retargeting rather than relying on it solely for top-of-funnel acquisition.

What does this episode say about customer retention?

Prioritize understanding your customer journey to deliver the right marketing messages at each stage, fostering deeper relationships and improving LTV.

What does this episode say about dtc strategy?

Invest in tools like Klaviyo to personalize customer communication and build meaningful relationships based on customer cues and behavior, which directly impacts retention and brand loyalty.

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