3 Challenges Slowing Your Growth


Hey, how’s it going? It’s Chin Gregory. In today’s video, what we’re going to be covering is if you’re an eCommerce owner and you’re running any type of ads, basically to take you through a process that’s going to help you solve the three major problems that most advertisers are having right now. Firstly, inconsistent campaign performance. Your campaign performance goes up and down every single week, having to recreate all of your ads and you create these over and over and over again. And finally losing money when scaling. Ads work right now but as soon as you increase the budget the returns fall off a cliff. Those are the three major challenges that a lot of eCommerce businesses who are advertising are having, and that’s what we’re going to cover in today’s video.

But before we get into that, if you are an eCommerce owner and you’re trying to scale your business, have a look learnwithchin.com. I’ve got a free training there. It’s about 20 minutes long, and I walk you through the process of how I’ve taken multiple eCommerce businesses to six figures per month, and a few eCommerce businesses to six figures per day. So if you’re an eCommerce owner and you’re trying to scale your eCommerce business, go check out learnwithchin.com, where I walk you through that process.

Now let’s get into the video because when I talk to a lot of my clients, a lot of clients I work with, especially as soon as they start trying to run any type of significant volume on Facebook and Instagram ads, they tend to run into the same problems over and over again. And the first problem with that is inconsistent campaign performance. So they’ll tell me they’ve had a campaign that was doing really, really, really well for a while. And then all of a sudden the campaign just stops working and they can’t figure out how to fix it.

The second major issue is having to constantly create loads and loads and loads of different ads. Having to cycle through creative over and over and over again. Nobody really wants to be doing that, and that’s another issue that a lot of eCommerce businesses start running into when they are doing a significant amount of volume on their ads.

And then finally, they tell me as soon as they increase their budget, the CPAs go up and the ROAS falls off a cliff. So these are three pretty common challenges that a lot of eCommerce businesses have. And I’ve had the exact same challenges as well, especially when I first started running ads. A lot of the time I spent tons and tons of money running into the same issues of my campaigns, weren’t working all the time, I had to constantly make loads and loads of creative. And as soon as I increase the budget the returns what? Fell off a cliff.

So it’s a very, very, very common thing. And essentially the reason why it’s happening, if you’re having any of these challenges, it really comes down to… Well, what I want to do, I want to show you how to fix these challenges. But the important thing is that these are more of strategic issues. And so as I go through this, I could sit there and I could give you over specific tactics about, “Oh, well, here is what you should be doing with the bidding strategy. And here’s how you should be changing the objectives. And here’s what the structure of a high volume campaign should look like.” That’s all well and good. But if that’s built on 40 foundations, then it’s not going to work.

So I’ll do that in another video. But today I really wanted to go through the foundations of what allows a ad campaign or successful eCommerce business to run tens of thousands of dollars per day and still be very, very profitable. And it’s all about getting the campaign set up right in the very, very beginning.

And I guess the best way I can explain this to you… Let me hop over to my white board real quick. I think we can see that there. The best way I want to explain this to you is that the key to getting scaling right all comes down to what I call customer journey sequencing. And so let me draw this on the whiteboard right now. So imagine that your customers, at any given time, they’re going to be in one of four places, in terms of their journey with you. They’re either going to be not shopping. And I really hope you can see my handwriting. It’s not the greatest. They either going to be researching, or what I call window shopping. They’re going to be in-store shopping. And they’re going to be checkout shopping.

Now imagine that at any given time in your market your audience is going to be at one of those points. They’re going to be not shopping, researching or window shopping, in-store shopping, and checkout shopping. Here’s what most eCommerce businesses, and I’ve been very, very guilty of this and this is why I’ve made this mistake so many times, is that at any given time, you’ll create campaigns that are essentially for… This is my stick man. These guys down there. And so the audience who is most likely to purchase from you, the audience that has the highest intent, this is what we call, let’s call it for the illustration purposes, a checkout shopper. They have the highest intent. And the mistake that gets made often is that all of the campaigns will be targeting people that have high intent.

And so here’s what happens. If somebody has high intent, they’re ready to buy, they’re already in the market for your product. When you run campaigns to those people, the feedback comes in really, really quickly. So initially sales will come in quite early and that feels great. Like “Awesome. The sales are coming in.” But what happens is as soon as you try and increase budget, there’s only so many individuals at that point of the process, right? There’s only so many of your market at the checkout stage. Now you hit different numbers. People say sometimes it’s 3%, 5%, but generally it’s a really, really small segment of the market that are ready to buy at any given time. And so most campaigns that are online are targeting those people in the market. And so when you try and scale that campaign, what happens is the algorithm runs out of those individuals very, very, very quickly. And so what happens is the CPA cost go up and it returns just fall off a cliff.

Now what the rest of your market, put them in blue, is generally a lot colder. But most of your market at any given time is either not shopping, or they’re just window shopping, just browsing. And especially on social media. Most people don’t go to social media to buy anything. And that’s a much, much, much larger segment of your market. And so where all the growth lies is in the ability to convert as many of these guys and girls as possible into these guys and girls, right? That’s where all the growth lies. Because if you’re only scaling people down at the bottom end of the funnel at checkout shopping stage or people that have intent, you’re going to run into a wall, a scale wall, very, very, very quickly.

However, where the campaigns can have the ability to scale really, really large and do multiple thousands per day is by increasing the amount of the audience that you’re targeting that’s a lot colder, that’s in these categories down here. Because then at that point, if you’ve created what I called customer journey sequencing, then all you’re really doing with your campaigns is that you’re creating campaigns that get people to go through each stage. When you’re doing that, all you have to do really at that point is increase the amount of people at the top end of the funnel. You increase the amount people at top of the funnel, obviously you got to pay attention to potential as well, which I’ll talk about in another video, but when you increase the amount of people at the top end of the funnel, that’s going to be how you can scale because then you’re converting more people further on down the line.

So kind of the best example I would give you this is that if you look at some of the best campaigns, some of the campaigns from eCommerce businesses that have absolutely crushed it, have done really well. People like Dollar Shave Club, Squatty Potty, some others off the top of my head, P90X is another great one. What a lot of these businesses did with their campaigns is that they were able to take people through this entire sequence in just one ad.

And obviously that requires a little bit of skill, but the whole purpose is getting people through the sequence so they can become a customer of yours. You can’t scale the campaigns that are only directed at converting them to customers. You want to scale the campaigns at the top end. But if you’ve got an ad or a campaign that can basically walk them through the sequence, which requires a little bit of skill, then that way you can scale that campaign, and that campaign can actually live for a very, very long… Pretty much live forever because it’s constantly doing the job of taking a cold audience and turning them into your warm audience and then converting them to customers.

This is the number one reason why businesses run into to problems when they try and scale, or they run into problems with inconsistent campaign performance. It’s lack of proper customer journey sequence. All of the attention is trying to just get the conversion, when if the attention is building the amount of people that become aware of the business and then taking those individuals through the journey and understanding, “Hey, my market goes through a journey from not being a customer, to being a customer, and I need to have specific campaigns and ads that take them through that sequence.” That’s how you’re able to basically scale massively at the top end, because there’s so many more people who are not shopping or who are not in the market for whatever you have to sell.

You can scale that, and then because you’ve got proper sequencing, they’ll get down through the funnel and now we’ll actually end up increasing your sales and conversions at the low end. And then, to really twist it and make it even more effective, you add some post-purchase campaigns and some stuff on retention and you’re really going to see your return on ad spend absolutely shoot for the roof.

So that’s pretty much it for this video. Just wanted to quickly go through your customer journey sequencing. This is generally why most businesses struggle to scale. Like I said, I’ve made that mistake many, many, many times. And I spent hundreds of thousands of dollars getting it wrong, so don’t make the same mistakes that I made. But if you ever having issues with scale, and if you ever having a problem where you’re trying to scale and you’re not able to get the returns that you want, or your campaigns don’t work, or the return on ad spend falls off when you increase the budget, sequence out the campaigns again, and concentrate on scaling the ones that are targeted towards the colder ended the audience. When you do that, you’re going to see some really, really great results with your ability to spend tens of thousands a day and still be able to maintain your high profits.

So that’s it for me for this video. If you want more stuff like this, like I said, I’ve got a short video training at learnwithchin.com, where I basically walk you through most stuff like this and how the customer journey sequence and the process that I use to scale eCommerce businesses to six figures per month and some to even six figures per day. And you can get that free training over at learnwithchin.com.

Other than that, if you’ve got any comments or questions, feel free to comment below and I’ll try and answer as many of them as possible, but I’m going to be doing more of these lives, try and get some done as many as possible, maybe even every day, just to try and help you solve some of your eCommerce issues, your customer acquisition issues, and your social media marketing issues. I’m going to do as many of these as possible and try and give you as much value as I can. That’s it for me. My name’s Chin Gregory. God bless, take care, and I will see you in the next live, which will be around this time tomorrow. All right. Take care. Bye.

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