- DTC Daily
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- Monday, July 3
Monday, July 3
Today's DTC news, tips, & tools you need to know
🥸 FTC targets fake reviews
📰 TL;DR - The FTC has proposed new rules that would ban fake reviews. Fake reviews in this case are when brands pay for illegitimate positive reviews, suppress negative reviews, or place reviews on products the reviews weren’t for in the first place. This seems to be more about the big marketplaces and sites, like Amazon, Google, and Yelp, and less about indie places, but theoretically, it would apply to everyone.
💡 Insight - I see this as good news. Hopefully, you’re not paying for fake reviews in the first place! I also think it will — if it works! — cut down on scam reviews on places like Amazon for junky products, driving customers back to real deal brands, like your own. If you’re struggling to get those early, crucial reviews as a new brand, try offering incentives for recent customers to leave a review, like coupon codes or freebies.
💸 Flat-rate agency pricing?
One of the worst critiques we hear of ad agencies is that they are constantly trying to get brands to increase spend so that they make more money with their "percent of ad spend" model... Yuck!
The team over at Storia has dozens of case studies proving their unique strategies can generate a 3X+ ROAS in today's climate!
The best part? They charge one low flat monthly rate to:
✅ create a bunch of new ads each month
✅ manage & optimize the actual media buying
✅ deliver easy to understand reports
✅ and so much more
📈 6 key drivers of conversions
📰 TL;DR - A big study from Shopify and Boston Consulting Group looked at more than 222,000 e-comm sites to see what drives conversions. They distilled that data into 6 key things, all in this article. They are: traffic source, basket building, checkout experience, payments, customization, and performance. For example, they found that organic channels and word-of-mouth recommendations drive more conversions than paid channels, especially for smaller merchants.
💡 Insight - Some of these are things I hope you’re already thinking about. Like, for example, a streamlined checkout experience that auto-fills information and moves as quickly as possible from product page to checkout. The insight about basket building is also interesting — the more people add to the cart, the more likely they are to complete the purchase. Combined with the note about customization, I’d say that being able to add personalized recommendations as items are added to the cart is a winning strategy.
💎 Lessons from luxury retailers
📰 TL;DR - This is a great piece about what e-commerce brands can learn from luxury retailers — think Hermès, Dior, Chanel, those guys. The first big point is how they approach loyalty programs. They don’t have some kind of point-building system, they treat their top customers like royalty from start to finish. In fact, 80% of luxury brand revenue comes from 20% of customers. That also means that returning customers are given special treatment. As well, marketing efforts are hyper-personalized, like sending text messages that mention items recently purchased.
💡 Insight - My big takeaway here is that luxury brands are experts at segmentation and personalization. They’re able to very precisely separate out their customers and identify high spenders and figure out how to make each customer really feel like a valued individual. That is of course not a practical approach for every brand, but segmentation in some form is important for everyone, big or small, casual or luxury. As a side note, my TikTok is full of luxury shoppers sharing their deeply personal outings to places like Hermès. Give those a watch to see how they make the shopping experience truly special.
🛠️ Things worth checking out
🐳 DATA - My friends over at Triple Whale have built a very impressive DTC marketing data analytics platform, check it out here.
🧖🏼♀️ BB&B - Bed Bath & Beyond has become a cautionary tale for other retailers. Here are some insights into what went wrong and what you can learn from it.
🚨 PRIME DAY - It’s coming! Here are some predictions, projections, and expectations for the big day.
💋 BARBIEMANIA - You may notice the absolute marketing blitz for the new Barbie movie, including a lot of collabs with DTC brands. Read more here.
😴 LUNYA - DTC sleepwear brand Lunya has filed for bankruptcy. Read more about it here.
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