Success Strategies Of 50 Fastest Growing Internet Retailers

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Native Commerce & Digital Marketer
Growth Strategies Of
The Fastest Growing
Internet Retailers

#tca2016 @your_twitter_handle
Source: InternetRetailer.com

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MEDIAPROPERTY CONTENT
SOCIAL
EMAIL
TRAFFIC
ORGANIC SEARCH
RENTEDLISTS
PAID MEDIA
NATIVE COMMERCE
ON-SITE
RETARGETING
3rd PARTY ADS
CONTESTS
ON-SITE
PROMOS
RETARGETING
RETARGETING

dividers,etc.
MEMBERSHIP SITE
SOCIAL
EMAIL
MARKETPLACESTARGETEDADS
TRAFFIC
SEGMENTEDPROMOS
LANDINGPAGES
PRODUCT GRID
ORGANIC SEARCH
RENTEDLISTS
PAID MEDIA
RETARGETING
RETARGETING

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#1 The Product Grid

Product | Test 1 | Test 2 | Winner
Lead Gen Device
$2 Cost/$10 Value
Contest Product $500
Want But Won’t Buy
Membership Site,
Assoc., Buyer’s Club
Core Products +
Profit Maximizers
Contest #1
Cost $____ CR __
Contest #2
Cost $____ CR __
Launch Contest
Cost $____ CR __
Tripwire #1
Cost $____ CR __
Tripwire #2
Cost $____ CR __
Launch Tripwire
Cost $____ CR __
Continuity #1
Cost $____ CR __
Continuity #2
Cost $____ CR __
Launch Continuity
Cost $____ CR __
Product Set #1
Cost $____ CR __
Product Set #2
Cost $____ CR __
Launch Product Set
Cost $____ CR __
The Product Grid

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#2 Expand Your
Product Line To At
Least 3 Products

Source: Adobe: “The ROI From Marketing To Existing Online Customers”
Repeat Customers Generate 41% Of Average Total Revenue

But 80% Of Marketing Budget Is Spent Acquiring“Shoppers”
Return Purchaser LTV Is Dramatically Higher

Differences Between Shoppers,Returning + Repeat Purchasers

So,Sell New Products To Your Existing Customers
• Existing customers want to buy more from you
• Have at least 3 to 5 products to sell them
• Leverage “bought this not that” retargeting
• Increase customer reactivation budget to reflect higher
value of return customers and repeat customers

dividers,etc.
#3 80/20 Product Line

Apply Pareto Principal To Your Product Line (270 Products)
#tca2016 LinkedIn.com/in/RolandFrasier Source: Todd Staples

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A Better
Model

Re-Inventing Models + Markets
• BlueApron.com: Eliminate inconvenience of grocery shopping. Cut out middle-men.
Subscription meal kits.
• Honest.com: Eliminate inconvenience of shopping for hard to find natural baby
products. Subscription diapers + related products.
• Harrys.com, DollarShaveClub.com: Eliminate inconvenience + expense of drugstore
razor shopping. Subscription razors + related products.
• PrimaryKids.com: Eliminate inconvenience of shopping for kids clothing. Ignore
fashion trends. Focus on evergreen styles. Save costs of designers and inventory.

What Is Your Business Model?
• What thing that has “always been done that way” could be
done differently and better? E.g. BlueApron: pre-measured
ingredients,WarbyParker: glasses, Leesa/Casper: mattresses
• Can you cut out the middlemen or change the model to save
cost and provide better value and prices to your customers?
Jet.com adopting the Ryan Air model.

dividers,etc.
Big Mission

Big Mission Statements
• Honest.com: Create a non-toxic world that benefits the
next generation
• NatureBox.com: Be the “Netflix of food.”
• DollarShaveClub: Help guys live a smarter, more successful
life through grooming
• WarbyParker.com: Offer designer eyewear at a
revolutionary price while leading the way for socially
conscious business.

What Is Your Bigger Mission?
• What big problem you are solving through your business?
• Who will be impacted by what you are doing?
• When will you accomplish this?

dividers,etc.
Conversational
Commerce + Attack
Of The Chat Bots

The Preeminence of Messaging
Source: activate.com/WJSD: Tech + Media Outlook 2016

Apps built on top of messengers allow users to consume
content, play games and conduct transactions. Source: activate.com/WJSD: Tech + Media Outlook 2016

Order Uber Through Messenger

Shop For Handbags Through Messaging App

3rd Party Integrations With Google & Amazon Dot + Alexa

Shop For Cosmetics With Snapchat Shoppable Stories

dividers,etc.
Be Different
From Amazon

Provide Experiences (And Products) That Amazon Does Not
• Personal Touch Like StitchFix.com
• Physical Connection Like NeimanMarcus.com
• Engaging Social Media Like DollarShaveClub.com
• Unique Product Selection Like Casper.com + Leesa.com
• Interactive Mobile App Experience Like eSalon.com

dividers,etc.
Start In A Narrow
Niche,Then Move To
A Broader Market

Master One Niche,Then Expand Into Related Niches
• DollarShaveClub.com: Razors > Own The Bathroom Cabinet
• Honest.com: Baby Products > Cleaning + Personal Care
• BirchBox.com: Women’s Products > Men’s Products
• NatureBox.com: Personal Snacks > Breakfast + Wine Boxes
• Amazon.com: Books > Conquer The World

An Example Of How We Do This With Our Companies
Survivalists
3 Million
> Campers
40 Million
> Outdoor Enthusiasts
141 Million
Phase 1 Phase 2 Phase 3

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Fight Margin
Compression With
Higher House
Product Mix #tca2016 @RolandFrasier

Create,Source & Sell Your Own Branded Products
• BlueApron.com: Grower Contracts > Retail Web
• Honest.com: Manufacturing To Retail Web/Retail
• WarbyParker.com: Manufacturing To Retail Web/Retail
• NatureBox.com: Manufacturing To Retail Web
• DollarShaveClub.com: Manufacturing To Retail Web

Selling Your Own Products Improves Margin Measurably
• Our average margin on drop-shipped + branded products is
20% - 30%.
• Our average margin on products we manufacture is between
50% - 70%.
• VI allows data-driven product development + short dev time

How can you use this in your business?
• Own or get exclusives on your raw materials like BlueApron.com
• Source manufacturing of your products vs. drop-shipping like
Honest.com + WarbyParker.com
• Own your own media (site) as well as using marketplaces like
Amazon.com
• Create + own your own brand like Shinola.com + NatureBox.com

dividers,etc.
Augmented
Reality

Wayfair’s Fair View App

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Personalization

Use Personalized Email To Improve Conversions
Choxi.com personalizes emails
based on page visit, click data
and aggregated data.
Click to view a pair of Ugg boots
online, but don’t buy. Then, get
an email with a link to shopping
cart.

Use Personalized Email To Improve Conversions Like
Honest.com
• Emails are personalized based on page visit, click data and
aggregated data
• 3x higher conversion rate on 6 email welcome sequence
• We used BuiltWith.com to figure out that the tool that
Honest.com is using for this is…

Tool: RetentionScience.com

Use Dynamic Websites To Improve Engagement Like
Zulily.com
• Displays millions of different versions of its website
any given time
• Learns what you’re interested in and dynamically
tunes itself to you (mom sees kid’s clothes, chef sees
kitchen gadgets)
• Data analytics + shopping pattern analysis maximize
relevance, engagement, sales and repeat purchasing

ConversantMedia.comCreatesA Different Site For Each User Based On Data

What Personalized Experience Can You Deliver?
• Survey your market to learn more about them and deliver
personalized experiences based on their answers?
• Allow customers to create their own customized version of your
product?
• Use on-site behavior, buying history or aggregated data to serve
the most relevant offers, content and experience to your
customers?

Personalized Service Via App
• BlueApron.com: Choose plan, food preference, delivery day.
• StitchFix.com: Personalized stylist for women on the go.
Mobile app lets users upload pics in clothes they like and
personal stylists base selections off those pics.

Personalized Web Experience
• Personalized experience through interactive survey on site
• eSalon.com: Custom hair color blended based on user input.
Personal stylist + photo upload to assist in color selection
• Sephora.com: Virtual Artist app. Try on lipstick instantly.
• AlexAndAni.com: Chain station builder. Custom jewelry.

What Personalized Experience Can You Deliver?
Leverage your welcome survey and give
the customer the sense that offering their
information is key to a better customer
experience.

Pop-up Stores

TheStoreFront.com

dividers,etc.
Competitive
Intelligence

What Traffic Channels Do Your Competitors Use
• Run a Comparative Analysis With Your Top 4 Competitors
• Find Out What Channels They Are Getting Traffic From That You
Are Not
• Then Go Get Those Channels

Run A Social Analysis On SimilarWeb.Identify Network
Strengths,Weaknesses + Untapped Opportunities

dividers,etc.
User Generated
Content + Social
Commerce

Social Commerce + UGC = Higher Conversions
• Shoppers who interact with a UGC photo are 2x more
likely to purchase.
• UGC photos increase engagement + amplify your brand.
• UGC photos raise on-site conversion by 12%.
Source: Pixlee.com

Fastest Growing E-Retailers Drive Traffic With Social
• Zulily.com: 7% Of Total Traffic From Facebook
• WarbyParker.com: 9% Of Total Trafic From Facebook
• Choxi.com: 10% Of Total Traffic From Facebook
• NatureBox: 21% Of Total Traffic From Facebook

Remove Friction + Encourage Social Engagement…
• BlueApron.com app encourages customers to post their creations on
Facebook, Instagram + Twitter.
• Julep.com: #MavenUnboxing hashtag drove 20 million social users
over Christmas. Contests + Giveaways drive 900k social followers.
• CharlotteRusse.com: Uses #CharlotteLook hashtag + Curalate + Pixlee
• WarbyParker.com: #WarbyHomeTryOn hashtag increased shares 40%.
Warby comments on those posts increased conversions by 50%

CharlotteRusse.com drives social commerce with Curalate

AlexAndAni.com Generated 585,000 Instagram Shares
Using Olapic

Add Social Commerce To Your Marketing Mix
• Instagram: Add a link from your brand’s bio to a shoppable
gallery of your brand’s Instagram pictures. Use “Shop Now” ads.
• Facebook: Create a social storefront page tab to allow users to
access a shoppable gallery of your photos + status updates URLs
• Twitter: Drop in a URL that leads users to your product pages
• Pinterest: Use Buyable Pins and Promoted Video Pins

dividers,etc.
Search

The 25 Fastest Growing
Retailers Spend 4x More On
Paid Search

How Do Small Retailers Compete With Top IR’s Spend?
• Long-tail research + content & paid ads: SEONick.com
• Go where they are not (pop-ups, print ads, trade shows)
• Create the unique, compelling content they are not
• Focus on your story and sell products they are not

dividers,etc.
Recurring
Revenue

Fastest Growing Companies With Subscription Revenue
• BlueApron.com: Food/Recipe Bundles
• DollarShaveClub.com: Razors + Other Bathroom Products
• eSalon.com: Hair coloring products
• Honest.com: Diapers + Other Bundles
• NatureBox.com: Snack Boxes, Breakfast, Wine (coming soon)
• NakedWines.com: Wine boxes

Subscription Revenue
• Predictable cash flow
• Predictable inventory needs
• Higher valuation multiples
• Biggest Challenge = Churn
Use Welcome, Consumption + Win-back Campaigns

What Is Your Recurring Revenue Plan
• Do you have a recurring revenue component to your
business model?
• What can you do to incorporate recurring revenue and
encourage retention to reduce voluntary churn?
• What can you do to reduce churn?

dividers,etc.
Be On-Trend

Are You Riding Current Trends
• Honest.com: Natural products
• Etailz.com: Eco-Responsible products
• NatureBox.com: Healthy living + snacking
• BlueApron: Cooking/Chef TV Shows + Monthly Boxes
• Trendwatching.com: Track trends

Source: Trendwatching.com
2016
Trends

2016
Trends
Status

2016
Trends
Youniverse

Is Your Business Model“On Trend?”
• What are the major trends are taking place in your
current market?
• What major trends apply to your target audience?
• Does your current business model and product
lineup match up to one or more of these trends?

dividers,etc.
Strong Customer
Feedback

Continually Iterating Data-Driven Products
• DollarShaveClub.com: Shave Butter buyers were best bet
to send free samples. 100% ROI on these people.
• Graze.com: Snack box product learns from your reviews
and adjusts snack mix to avoid the types of tastes you
don’t like
• SurvivalLife.com: Knives sell better than most products

Honest.com: Provide Value + Get Valuable Feedback
• Challenge: Babies are always growing requiring manual account updates
for accurate size on diaper + baby bundles
• Solution: Honest Baby App – tracks baby’s size, weight + change
frequency. Parents can update subscriptions,track orders and earn referral
credits through the app.
• Provides Valuable Info To Parent: baby milestones, Dr.visits,sleep and
feeding habits.Providing valuable info to Honest.com & parents.

How Is Your Customer Feedback Loop?
• Let customers update account info, post reviews, leave
opinions.
• Offer live chat, telephone support and a help-desk?
• Monitoring customer feedback on the web?
• Building customer preference/taste profiles to personalize
the app + web experience?

dividers,etc.
Mobile First

Mobile Traffic +
Sales Continue
Growing

Reduce Mobile Buying Friction
• Etsy.com: 58% of
traffic from mobile +
41% of sales
• Groupon.com: 50%
of sales are mobile.
70% of all mobile
sales are via app.

Deep Linking,Biometrics + 1-ClickSales
• JackThreads.com: Deep links to product pages in mobile
app from emails and from mobile search queries
• Amazon.com: 1-Touch App Sales Via iOS Touch ID
Fingerprint
• BlueApron.com,Target Cartwheel App + Groupon.com: All
offer 1-Click sales through Apple Pay

Amazon Payments
Dramatically increase mobile conversions by
adding Login & Pay With Amazon to your products

Amazon Deep Links
Dramatically increase mobile conversions deep linking to your
product in Amazon’s Mobile App 30 Million MAUs

Are You Maximizing Mobile Traffic Opportunities?
• All your site and product pages responsive or designed for mobile?
• Do you have a mobile app or chat bot?
• Are you using app-indexing + providing deep links to the products
offered in marketing emails and from search?
• Do you offer 1-Click payments through Amazon,Apple Pay, etc.?

dividers,etc.
Bundling

The Benefits Of Bundling…
• Personalized customer experience (choose your adventure).
• Avoid decision fatigue and increase conversion rates.
• Valuable customer data + feedback for future product dev.
• Increase immediate average order value and Lifetime
Customer Value by increasing order size + price.

What product and/or service bundles can you create?
• Products that go together like DollarShaveClub.com does
with razors and shave butters and gels?
• Products that complement one another like Honest.com
does with diapers and baby wipes
• Increasing quantity + selection like NatureBox.com does.

dividers,etc.
Strong Referral
Program

BirchBox.com: Holiday Promo Copy 2x Referrals + 2x
Referral Sales…

DollarShaveClub.com: On Brand Message 2x Sales

Referral Programs
• Drive 5% - 30% of total acquisition
• Average CPA is $3
• Display + PPC CPA averages $40
• Retargeting CPA averages $10
Source: FriendBuy.com

dividers,etc.
Unified Commerce
Vs.Omni-Channel

Source: Boston Retail Partners

dividers,etc.
Free Shipping
Speedy Delivery

Shipping To Compete.
• Target.com: Free shipping for $50 minimum order. $25
outperformed significantly so minimum lowered to $25.
• BlueApron.com + StitchFix.com: Free shipping.
• Choxi.com: Partnered with ShipStation.com,ShipWorks.com
+ SkuVault.com to offer best shipping options.

Amazon Dash,Echo,Prime Now + Lockers

dividers,etc.
O2O

O2O: Online To Offline Meets Offline To Online
• NeimanMarcus.com: Site features encourage users to connect
with in-store associates. Facetime style sessions.
• Nordstrom.com: Buy online/pick-up in-store
• Amazon to launch 100 pop-up stores
• WarbyParker.com: Pop-up Stores,Yurts, School Bus Stores, Retail.

dividers,etc.
Charitable
Commerce

Charitable Commerce: Mixing Charity + Sales
• Honest.com: Supports GirlsWhoCode.com and others.
• AlexAndAni: Dedicated jewelry with sales proceeds to fight AIDS.
• DollarShaveClub.com: Colon Cancer Alliance.
• Toms.com: Pair of shoes to a child in need for each pair sold.

What’s The ROI On Charitable Commerce
Millward-Brown study on market performance of brands
oriented around a noble purpose or ideal showed brands with
lofty purposes outperformed the S&P 500 earning 400% more
profits than those without those higher purposes.

Warby Parker: BuyA Pair,Give A Pair

What Good Can Do Through Your Business?
• Donate one of whatever you sell for every sale you make?
• Donate a portion of the proceeds from whatever you sell?
• Find a charity that aligns naturally with your business that
your company can support?

dividers,etc.
Thank you!

Success Strategies Of 50 Fastest Growing Internet Retailers

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Success Strategies Of 50 Fastest Growing Internet Retailers