Module 8 The Routine

Transcription

1 Module 8 The Routine

2 Module Agenda The complete routine for your business: Every Day Every 4 Days Once Per Week Once Per Month Advanced Facebook targeting Making your business look legit

3 The Routine

4 The Routine - Summary Every Day Process orders, check on sites, accounting Every 4 Days Evaluate all ads, create new ones Once Per Week New audiences, new products Once Per Month Gross and Net profit

5 What is Gross Profit Margin? Gross Profit = Total Revenue Cost of Goods Sold Total Revenue ALL money made, the total that customers pay you (shipping, multiple orders, etc) Cost of Goods Sold All the money YOU pay to suppliers to get the goods (reflected in the revenue number) to the customer

6 Example Gross Profit Margin For a defined time period let s say July Steve s site made 300 sales These 300 sales brought in $6,000 in product sales and $1,500 in shipping charges The TOTAL REVENUE for Steve s site in July = $7,500

7 Example Gross Profit Margin For the 300 sales in July, Steve had to pay various suppliers $3,000 in total to buy the merchandise and have it delivered to customers So, the total COST of GOODS for July was $3,000

8 Example Gross Profit Margin Gross Profit = Total Revenue Total Cost of Goods Gross Profit = $7,500 - $3000 Gross Profit = $4,500 This can also be described as a ratio with Total Revenue the Gross Profit Margin Gross Profit / Total Revenue Gross Profit Margin = $4,500 / $7500 =.6 or 60%

9 What is Net Profit? Net Profit = Total Revenue Cost of Goods Sold ALL other expenses (mostly advertising) Total Revenue ALL money made, the total that customers pay you (shipping, multiple orders, etc) Cost of Goods Sold All the money you PAY to suppliers to get the goods (reflected in the revenue number) to the customer All other expenses Advertising and any other Misc. expenses

10 Example Net Profit Net Profit = Total Revenue Total Cost of Goods All other expenses Month of July, our advertising expenses were $2,000 Net Profit = $7,500 - $ $2,000 Net Profit = $2,500

11 The Routine - Every Day, Or Just Check on sites Process orders Weekdays Move money from Paypal to bank etc. to cover bills

12 The Routine Every 4 days Evaluate ALL running ads Scale up, scale back, or kill Create one new adset targeting one of the lookalike audiences from your portfolio of 12

13 Why the 4 Day Rule? All days are NOT created equally Need to have some statistical significance Example: For most of our sites, Tuesday AM through Thursday Afternoon are not good SO running for 4 days guarantees we will always have some good days in there Same for you, although the days of the week may not be identical

14 Evaluate Each Running Ad For the defined period (4 day period) track: 1. Ad spend 2. Revenue brought in (total for traffic coming from THAT ad) Evaluate Revenue Vs. Ad Spend This will REPLACE the generic multiply by 1.5 ad spend scaling rule from last Module

15 Evaluate Each Running Ad Make sure that your ads are still profitable while scaling, by using this measurement, not the 1.5x: Take Total Revenue and multiply by your most recent Gross Profit Margin (or 60% if you haven t yet calculated this) Take this number and subtract the ad spend from it If the result is greater than zero, keep scaling - otherwise revert back to lower budget

16 Evaluate Each Running Ad - Example For a given ad over a 4 day time period: Total revenue generated by that ad = $3,000 Most recent Gross Profit Margin = 60% Ad spend = $1,200 Take Total Revenue and multiply by your most recent Gross Profit Margin $3,000 *.6 = $1,800 Take this number and subtract the ad spend from it $1,800 - $1,200 = $600 If the result is > 0 (it is), keep scaling otherwise revert back to lower budget Result: Keep Scaling

17 Evaluate Each Running Ad - Example For a given ad over a 4 day time period: Total revenue generated by that ad = $1,000 Most recent Gross Profit Margin = 65% Ad spend = $700 Take Total Revenue and multiply by your most recent Gross Profit Margin $1,000 *.65 = $650 Take this number and subtract the ad spend from it $650- $700= - $50 If the result is > 0 (it is not), keep scaling otherwise revert back to lower budget Result: Revert back to previous budget

18 Evaluate Each Running Ad Still use the scaling rule to increase the budget 1.5x rounding up - $1 to $2, $3 to $5, $5 - $8, etc Run this budget for 4 full days Evaluate ads with the new evaluation formula If scaling results in profit Repeat Process Otherwise LOWER budget back to previous level If your budget goes down to ZERO without making a profit, kill the ad

19 The Routine Once Per Week Try out one new audience for an existing product Try out one new product for your niche site Add one retargeting adset for any product that doesn t have one yet (but still has ads running for it) we will explain re-targeting Check for enough data to build the 4 lookalike audiences until all 3 are built (will result in 12 total look a like audiences)

20 The Routine Once a Month At the end of each calendar month calculate your Gross Profit Margin for that month On the 2 nd day of the month (or whatever day works for you as soon as you can following the end of the month) calculate the Gross Profit Margin for the previous month When just starting out and you do not have a full month of sales use 60% Calculate Net Profit

21 Big Picture of the Routine You have a Niche site You have 2-5 products Each product has an ad or ads running for an audience that works Each product will eventually run ads (same ones as above) to lookalike audiences All ads will constantly be under review You are constantly expanding audiences and products

22 Optional Audiences - Retargeting Last Module we created custom audiences and lookalike audiences. You will continue this practice for most of your ad campaigns with more granular tweaking. This Module we will put together retargeting ad campaigns for specific products. What is retargeting? It is the practice of reminding previous site visitors that they were interested in a product or perhaps left it in the cart and did not purchase (accounts for 95% of site visitors) How do we do this?

23 Optional Audiences - Retargeting We can create an audience from a specific web page (product page) but did not purchase. Just copy and paste the url in here. Add the exclusion url to the thank you page. We can send this audience a specific ad with the product and perhaps a coupon. You could do so many things here, the possibilities are endless. 1. Create a lookalike audience 2. Create audience from this product and add carts keyword and/or exclude order-received page (didn't buy) 3. And so on...

24 Optional Audiences - Retargeting Just like last module, we are just creating a new Custom Audience:

25 Optional Audiences - Retargeting Now you will use this audience when you create your Retargeting Campaign.

26 Optional Audiences - Retargeting Create your ad with this audience. In your ad, use the ad that drove traffic and include a discount. NOTE: Since this audience is smaller, we will measure success against 1000 impressions, regardless of how many days it runs.

27 Optional Audiences - Retargeting

28 Optional Audiences - Retargeting

29 Facebook Ad Data Supremely powerful Who s clicking and buying? Age Gender What ad types does my target audience(s) respond to? Colors Arrows, etc. What devices do my clickers and buyers use? Desktop Mobile

30 Finding the Data Examine best performing ads Highest CTR AND/OR Highest converters Examine the demographic data Age segment Gender Examine the device type data Look for commonality among ads colors, arrows etc Build a perfect candidate Woman, aged 35-55, using a mobile device, liking red arrows

31 Using Facebook Ad Data How To Use That Data Again? 1.What Products Are These Audience and Demographics Into? 2.What Products Are These Audience and Demographics Buying? 3.What Products Are These Audience and Demographics Needing? 4.What Products Are These Audience and Demographics Wanting? GOOGLE IT!

32 EXAMPLE - LIGHT WEDGE We Felt This Product Was Unique & Cleared The PAN Filter! Priced it well below the $19.99 it sells elsewhere!

33 EXAMPLE - LIGHT WEDGE Created These 2 Ads Yes We Know Not Fancy!

34 EXAMPLE - LIGHT WEDGE We Chose Some Interests That We Felt Targeted An Avid Reader!

35 EXAMPLE - LIGHT WEDGE What Does This Campaign Data Tell Us? Women and were the Clickers For the campaign (18-24 are not big spenders)

36 EXAMPLE - LIGHT WEDGE What Does This Best Ad Data Tell Us? Confirms What We Already Know - Women and the same 2 age segments

37 EXAMPLE - LIGHT WEDGE NOW WHAT? 1.We can rerun this ad and only target Women 2.We could also run 2 ad sets at the different age segments and We could test Just Women and evaluate the age data further later 4.We Could test the same product at the same interest/audience 5.We Could find another product that readers would love and test the new product with these demographics and a similar ad to the winning ad LOTS OF OPTIONS BUT IT S ALL BECAUSE WE HAVE GREAT DATA TO WORK WITH

38 USING FACEBOOK AD DATA - ADVANCED What Is This Data Telling Us?

39 What Does The Data Say? Both Men And Women Are Clicking and Buying There are two winning age segments and Mobile Traffic Converts The Best

40 WE RAN JUST THE WINNING DEMOGRAPHICS TO A SIMILAR AUDIENCE

41 Incorporating FB Ad Data Into The Routine Audience selection / expansion Same audience only target winning demographics New audience using only targeted demographics Product expansion Winning demographic? What other products would they need?

42 Adding Street Cred

43 Customer Support: Management

44 Help Desk Benefits 1. Receive, process and respond to customer service queries with ease 2. Automate your customer support and provide answers even when offline 3. Listen everywhere where it's possible - , Voice, Social or Chat 4. Equip your help desk agents with pre-made answers and canned messages 5. Improve relationships with your customers 6. Customise Rules and Filters 7. Virtual Assistant access for collaborative communication

45 Customer Support: Forwarding to Help Desk Easy to implement! Forward your support To the support desk. They will have specific instructions.

46 FB Page Management Benefits Control Spam Remove negative comments Engagement with customers and fans Review Ad comments Brand Building

47 Customer Support: FB Page Comments

48 Customer Support: FB Page Comments

49 Customer Support: 800 # Use this number on PayPal, website, and all material. Set it to just receive calls to voic and have it ed straight to you.

50 Customer Support: PayPal Disputes - It Happens Have all your from PayPal set to your support@ and forwarded to your Help Desk. Handle all correspondence post haste. Most people just want to know you are there.

51 Action Items Implement The Routine as your basic day-today operational model Learn advanced Facebook targeting techniques retargeting, behavioral targeting, broad vs. focused targeting (last two are covered in Module 6 supplementary videos) Study how to use the Facebook ad data at your disposal and incorporate it into The Routine Give your business street cred