NO BS PRINCIPLES TO GROW LOW-TICKET BRANDS TO $1M IN REVENUE

It’s a frequently cited misconception that you need a high-priced product to crush it in the eCommerce world.

Truth be told, success isn’t just about the price tag; it’s about the strategy.

Low-ticket products can indeed be lucrative, as demonstrated in our own journey where we boosted a brand from ground zero to a whopping $1M.

Here’s a look at the core principles that led to this success.

 

The case study that proves the point

From Zero to $1M: Crafting a Timeless Skincare Brand

Thia Australian Brand selling natural and organic beauty brand was on the brink of collapse when she reached out to us. 

Targeting mature women, she had the product right but the strategies? Not so much. 

By December 2022, we had turned things around, hitting the coveted $1M mark. So, how did we revamp and refocus?

  • Positioning: Initially perceived as just another skincare brand, we dug deep, pivoted the narrative, and catered exclusively to mature women. The difference was palpable.
  • Goal Setting: As a bootstrapped company, the aim was clear—profit, and ASAP. We had to maintain a delicate balance with acquisition costs.
  • Acquisition Tactics: Our main tools? Google and Meta Ads. Through a series of targeted tests, we optimized our outreach and found what worked.
  • Retention: Using Klavyio, we amped up retention marketing, effectively increasing the customer lifetime value.



The result? A cool €1,174,859 in generated revenue.

 

Nice to know right? But even in the above picture, there are a LOT of things that can go wrong if your brand strategy, positioning, and expectations are not properly aligned.

Let’s dive deeper into the timeless principles that allowed us to truly get there.



 

Principle 1: Targeting Break-Even Fast Growth, Not High ROAS

 

  • Redefining the North Star Metrics: The digital landscape often emphasizes the importance of high ROAS (Return On Ad Spend), but for low-ticket items, the goal should be more focused on gaining market traction and audience familiarity.
  • Short-Term vs Long-Term: By breaking even, you essentially gain free advertising and valuable data on consumer behavior. While it’s not a profit, it provides an advantageous starting point for long-term scaling.
  • Example: Think of this as a storefront’s “grand opening.” The main objective on opening day isn’t necessarily massive profit, but drawing people in, making an impression, and encouraging word of mouth.
  • Strategy Pivot: For brands with smaller ticket items, the long game involves a customer lifecycle approach: attract, engage, convert, and, most importantly, retain.

 

 

Principle 2: Retention Marketing is the Real MVP

 

Why Acquisition Costs Outweigh Retention: Studies by Harvard Business School suggest that increasing customer retention rates by 5% can increase profits by 25% to 95%. This dramatic shift underscores the value of a loyal customer base.
While with paid acquisition, part of your profit goes naturally to ads platforms, this doesn’t happen with Retention Marketing.

 

 

Principle 3: Rich is in the Niche

 

  • Why Specificity Sells: In an increasingly crowded market, specificity can set a brand apart. It’s not about being everything to everyone, but being everything to someone.
  • Audience Understanding: Deep dive into your niche’s lifestyle, preferences, pain points, and aspirations. For instance, mature women might value authenticity, natural ingredients, and a brand that challenges aging stereotypes.
  • Collaborative Growth: Engage with influencers or personalities within your niche. Their endorsement provides credibility and taps directly into a concentrated audience pool.

 

 

Principle 4: Cross-Channel is Key

 

  • The Omni-Channel Approach: Brands can no longer rely on a single channel for sustained growth. By integrating multiple channels, you ensure the brand message is consistent, diversified, and omnipresent.
  • Consumer Touchpoints: Research shows it takes 6-8 touchpoints before a lead becomes a customer. An integrated strategy across Meta Ads, PPC, and direct mail can exponentially increase these touchpoints.
  • Example: A consumer might discover a brand through a Facebook ad (Meta), research its reviews on Google (PPC), and finally decide to purchase after a personalized email discount. That’s completely normal to happen!
  • Data Cohesiveness: Ensure all channels communicate. Platforms like TripleWhale or Revealbot can integrate data from different channels, offering a 360-degree view of the customer journey.

 

 

Principle 5: Embrace Seasonality

 

  • Predictable Patterns: Almost every industry has its ebb and flow. Brands can harness this predictability to maximize sales and minimize waste.
  • Inventory Management: Use past sales data to predict demand during peak seasons, ensuring you’re stocked and ready. Conversely, bundle or discount slower-moving items during off-peak times.
  • Example: Fashion retailers introduce new collections corresponding to seasons, while also offering ‘end of season’ sales to clear out inventory.
  • Budget Fluidity: Allocate budgets dynamically. Double down on marketing efforts during high-sales potential periods and scale back, focusing on engagement and brand building during slower times.

 

 

Incorporating these principles into a cohesive strategy requires patience, testing, and adaptability. But brands that successfully meld these elements find themselves not just surviving in the eCommerce world but thriving, setting the gold standard for others to follow.

 

For continued insights and a journey towards eCommerce excellence, stay connected.

 

Feedback? Passionate discussions are welcomed at [email protected].

 

Peace 🌟

 

Andrea Tonetti

Andrea Tonetti

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