We won’t discuss some strategies that e-commerce companies are not executing in this post.
This post is going to be about “TOO MANY DIRECTIONS” and “COMMUNICATION”
As Agency and a few e-commerce brand co-owner, we’re always asked to consult or be in company meetings to listen and observe.
Here will be our observations that are holding back some brands from growth.
- Too many agencies are hired for client acquisition, leading to non-communication and no growth.
We’ve seen brands hiring one agency for email marketing, one for Facebook ads, one for Google ads, one for creative, and one for CRO.
This has led to a huge mess.
Each agency is creating reports showing that their activities are producing results.
Email marketing agency shows that they are generating 30% of the overall revenue by showing reports (which always overreport the sales)
Google ads agency shows that they are producing 20 ROAS on advertising on branded keywords, so they are crushing it.
Facebook ads agency is showing their ads managers that they produce 5 ROAS and good numbers.
Creative agency is discussing how they need to know what type of content works because they don’t get daily reports.
CRO – well, they do some optimization that results in nothing.
At the end of the day, when you put all the reports together, the Sales numbers don’t add up to reality.
They don’t communicate with each other, which leads to a brand being stuck in the same place for an extended period.
HERE'S HOW TO FIX THIS ISSUE
- Create one data place where everyone is looking
- Create one place where all the agencies communicate with each other toward a common goal.
- Create incentives that are not channel based.
- Fire all of them and hire an agency with everything in one place. This saves communication time and ensures they are working towards one goal.
Consultants and marketing gurus move the brand in many directions.
This is a crazy one.
We’ve seen a consultant suggesting that the brand should 10x their Google ads budget for the next quarter because Google reports 20x ROAS. Resulting in Facebook having $3k budget and google $15k a month.
This resulted in a 20% decrease in sales and CPA going through the roof.
We’ve seen consultants create 1.5-hour-long reports on how well the reach, impression, and like metrics are.
When it came down to report the purchase data, there were 7 purchases at $300 per purchase.
To avoid all of this BS, brands need to have
- Clear understanding of their numbers and KPIs.
- Common GOALS for involved parties to ensure they all work towards one goal.
- One place where all the communication has been held for the involved parties.
- Clear weekly reports on what has been done, what problems they are facing, and the next steps.
We’re sorry if this was all over the place. We have seen this too many times and thought that this was worth mentioning.
Thanks for reading.