Boost Sales with This Proven Marketing Strategy (LIVE Case Study!) | Tier 11 Live! - EP002

hello we're live surprise surprise surprise it's a surprise tier 11 live I was a poet and I didn't know it yeah surprise

live perfect surprise live but yeah so we're um last week's show was a lot of fun that was the most fun I've had in uh

wow that sort of shows the lameness of my life that was the most fun I had all week how about that I'll take out the weekend because I know I'd piss off my wife she's like

what about we had a great time together I'm like uh yeah but my time with John Moran was actually a lot of fun during the week so I know I'm always you know very cautious whenever I say like man that was the most fun I've ever had I

mean besides like my my wedding day and the day that I met you honey my kids up like an when you were born we'll just have to make a pack like never send these recordings to our wives but they probably subscribe to our

channels and our socials so like there's nothing we can do anyway yeah yeah got like the day that we know we're going live we just like pre- buby flowers that's right that's right just have I think standing order I think from a

florist every Friday just knowing we're gonna do we're gonna say something that are going to piss off the wives I like to schedule out 52 weeks in advance I sorry I'm sorry for what I said on

YouTube yeah that's in advance I don't know I can't be held accountable or reliably you know sort of responsible for what I might say live so anyway so

we are live here hopefully uh we we did this last minute because John uh you're tied up on Friday not tied up tied up but you're tied up speaking somewhere I

actually don't even know where you're at yeah like where are yeah they might tie up but where are you speaking on Friday actually yeah so I'll be in Times Square in New York City speaking at the uh

affiliate Summit East oh right yeah yeah so I'm I I speak uh on Monday but Saturday we do like the sound checks and everything like that supposed to be like

65 or 7500 people there um so for my stage fright it's gonna be great you know I'm not gonna be nervous at all uh this is what I'm comfortable with when I see everyone staring at me I'm like well

how's it going I don't ofly just I blink and I do deer and headlights on stage and then I have lights on me and I can't stand stage speaking it sucks I hate it well I don't know I don't think I mean

I've seen you speak live plenty of times like once you get into your thing it's like I think you just sort of forget the fact that people are staring at you it's like it's the beginning of it that's always the hardest I found yeah yeah

like you know you know when it's always like oh you got to like imagine the entire audience is naked my mind just immediately goes with am I naked and then I yeah and it's weird it's just a strange thing I used

to I used to teach public speaking back when I was in the corporate world and I always told people who had a lot of stage fright is memorize your first 15 seconds so so much so that you never

even because that's the hardest part really because you're up there and you're like holy crap I'm in front of the audience you got a presentation but like how do you segue into it and

remember like I still do that to this day and rehearse that like 20 times and then the rest of the thing kind of comes naturally once you get into the flow like stuff you're going to be talking about here today like you don't have to

rehearse this even though we did have a preall to kind of go through it it's like you just know it um but I find like it's that the transitionary perod is like the beginning of the end that people get kind of freak out about so

but I know you do great so yeah it's very true my first like five minutes I'm like so I'm John I do things on Google uh I'm ran and then at the end

all of a sudden I sometimes my last slide surprises me and then I just finish with then that's it I've been a Google holic for 15 years Google Anonymous yeah Google's Anonymous

well you're so much you're so much more than paid traffic yeah D dicted to B traffic yeah uh nonstop 24 hours a day

um well today I think people know you as like a go I I I always sort of phrase this is that people and I even talked to I had a team with um or a call this

morning with uh two of the guys on our executive team just because we were planning out some of the acquisition stuff that we're doing right now and we were talking about you and they're like well Jon's somebody said well Jon's

traffic I'm like not JN is not traffic Jon's strategy he has a traffic bent to it but he also realizes creative is super important and he understands that

he's not the greatest maybe a creative which is the reason why we're you know acquiring this creative company which is going to be great because they're going to be a great partner we've been working with them for nine months we know that

they're super smart but like you get like a high level strategy of what's best for the client and that's the thing that and then you say all right well what's my traffic strategy well part of

traffic strategy is creative you you realize like you're not the guy who's going to go do like you know script the video and do all that sort of stuff we've got people that do that but you

realize like you know top of the funnel like at awareness and then consideration ultimately action and conversion like there's different types of creatives that do all that so but what you really

understand what we're talking about here today is the higher level strategy of like what's the goal of the client yep what did they really want not what they

want like today or yesterday and you know whipsaw the team into saying I really like that creative let's run more of that and it's not in line with the

goal and we're going to talk about a client which will remain anonymous where the goal was secondary to sort of a

strategy that was come upon with no inkling or no insight into the achievement of the goal yeah it's almost

like the Topline goal and then as to which the second goal was measured to make sure that the Topline goal is on

track sort of became the priority at the sacrifice of the topl line goal right and the number like the number one reason why before like you know you and I linked up together and I joined tier

11 the number one reason why people would reach out to me is to solve business problems through marketing yes or I guess I would say in tandem of marketing it wasn't because

you know I knew the best bidding strategy my opinion traffic is fairly easy creative is actually way harder than traffic I mean as long as you have access to Google ads you can run a campaign in 10 minutes sure I me you may

not even have conversion tracking but that's whatever fine doesn't really matter sometimes exactly exactly but the the Topline goal as to which it's it's much it's it's a

harder question to say like hey can you get a 400 row as yes hey can you double my company oh but those two should be synonymous and it's not and it's scary and I don't know why they're they're

usually two separate things right right right you know traffic is just the test to which does your business work yeah exactly like no amount of traffic or

traffic strategy in the world is going to make up for the fact that you might have out have a product that people don't want right yeah I always made the joke be like if you only sell one shoe

it's GNA not go well so at a base level sell two shoes right there's a very small Market there's a very small one shoe market out

there but yeah let's not go down that road that's left-handed water bottles left-handed water bottle potentially or one armed for people with one arm uh anyway no I don't

know where we're going on that one the point is that the big goal is the most important thing and the marketing tactics are the things that get you to the big goal and what people hire for

ultimately and I I think we we see this now with a lot of our clients I think they they are getting it uh I see this

with prospects that we speak to talked to dozens of businesses every single week about this is that marketing is a means to an end an agency is a means to

the end and the end is the growth of the business in a profitable way and that typically includes acquiring new customers at a cost that makes Financial

sense that could mean you know having a return on ad spend immediately or it could mean Break Even because you have a lifetime value that actually

substantiates that customer acquisition cost to start off with and then obviously growing that customer base through repeat purchases additional

products that's really what marketing is that's the goal of marketing because when and then the goal is the growth of the organization reaching their growth goals but then at the end of that the

goal of the goal is to achieve their Vision like if I do this then I help this many people achieve whatever my objective happens to be and that's the

big big goal but taking it back to what we're doing marketing is just a means to get to those goals and I think that's

where you Excel and understand and we're infusing that methodology into tier 11 because quite honestly a year ago two years ago we were still talking about

marketing tactics we're still talking about in app Rass yeah yeah and that's and it's it's a it's a weird phenomenon where it's almost like when you take a

step back if you're a business owner out there if you have a team an internal team you've hired a team you hired a freelancer whatever it is your job became more about who you

can trust to make the right decisions for what you're watching and when we're talking about like Ina Ras Top Line measurement npis all this stuff is is hard as

convoluted but it is it can be very very simple um can be it can be very simple now the execution and the strategy being

implemented and maintained and measured and all that stuff that is you know obviously multiple full-time jobs but the but the synchronization between

stakeholders never happens and it's actually the simplest thing when you boil it down like if I mean let's let's bring this down to the simplest way that we possibly can if you are running a

lemonade stand you have one job that day sell lemonade right what is your goal to sell lemonade I want to sell at least two gallons of lemonade and then someone comes in and says yes but the traffic on

the street doesn't seem as quality it's like you know what did we sell today we sold three gallons of lemonade but this street over here has a less

traffic it's like I don't care like the goal is achieved and there everything else underneath that goal is noise if it's not talking about that Topline goal now that gets very hard when you have a

vice president of you know marketing and then you have a person underneath them that understands digital marketing tactics a little bit more that is then speaking with even an internal team an

external team or freelancer of what they think should happen and then there's an interpretation on the other side but then that also has to go to the creative Department that then also has to to be talked about to the media buyers that then also has to be rest strategized

based on how does that implemented get you know how does that be implemented those are where everything breaks down and everyone circles around

they did their job it's not their fault that you didn't reach your goal but that's because they were measuring something else yeah what was important to them what's important to creative is not important to strategy what's important to strategy is not important to Media buyers what's important to

Media buyers has nothing to do with the Top Line goal that's where this whole thing spires out of control that's actually case study that we have today to say that things were going very good

things started to not go as good and the conversations that we're having today were actually uh not should should not be

happening because of the stakeholders not technically looking at the bigger picture on on sort of all sides and that's that's what's that's what it can

be very simplified yeah so if we take a step back here we've talked in our first uh YouTube live a bit about marketing performance indicators and we're we're

actually working on a resource that you'll be able to download so you can sort of follow along um a goal here is to is to go through all of them

individually and then highlight through case studies why each one is important and how it relates and how it's different than maybe the way that you used to do marketing or your team used

to do Marketing in the past so one of the things I think with with today's case study and the conversation is the idea of marketing

efficiency ratio and Merr just in general maybe you can go through like what is myr I know people it sort of became a buzzword after the the iOS 14

update and then people got away from it but it still hasn't really gone anywhere it's like still there and it's it's I mean the Smart Companies measure their

effectiveness of or their efficiency of their media through this metric but I find a lot don't they still kind of go back it depends on the maturity of the organization but even M more mature

organizations sometimes forget it as well well attribution for some reason Trump's myrr and that that that's what I don't get attribution should never Trump

myrr what do you mean by that say so so attribution means that we are getting a 10x but these are the channels contributing

to that as best as I can understand and we say that the media efficiency ratio is a not really tracked

not really measurable not really understood not really it's kind of like the if your attribution is good you should be able to achieve a better myr

and that's actually never the case never is your media efficiency ratio is at a 10

and how you see that being attributed is secondary that is just the best trackable result as to why that's a

10 it's not well see how meta is doing better than Google it has a higher row as so if I push more into this that means my media efficiency ratio should be higher and that's what people

typically do is they look at attribution they try to figure out the why and they try to force a why rather than understanding the traffic flow and how

it's attributed which means each channel will only measure a portion of that person's Journey Only to the Aspen in that channel it's not the channel

bringing people awareness and selling them and then reselling them forever through that one campaign that has a good Raz people don't understand that when

traffic flows through your through a customer Journey you're measuring well Facebook started Google captured email

sold SMS resold what happens is they try to upset the traffic flow by pushing harder in one portion of the journey and they're

wondering why exactly and so attribution never trumps it it should be okay if I see that my 10x mm means that this portion started here continued here

converted here reconverted here in order to keep a ratio a med efficiency ratio all cash in all cash

out your all cash in needs to be divided by how much Journey did each area produce and add in the as spend equally

to those Journeys because it's an asine thing to think about out loud and make a suggestion on well if we just started more people but we didn't continue with

the more education we didn't continue to try to convert them more we didn't continue to try to reconvert them more trust us if we just push here everything else will follow suit it's a it's paid

media you can't if you say hey I have 10 shoes in my warehouse but I can sell more shoes if I just make the doors wider I'll get to 20

sales it's like no that's not that's not how that works MH so you don't just make the door wider you have to grow the doors the warehouse the products I mean

you have to you think about it like okay after step one don't just be like step one more Aspens step two profit like it's it's not you know that's not how it

works so that's where attribution for some reason trumps m in most cases and that's typically the downfall of

optimization so the biggest fault of marketers right now that you see is that they are over relying upon attribution and

single channels and siloing as opposed to looking at the bigger picture which really is what myrr is if I'm understanding you correctly can you define for us I know you've got a

whizbang graphic on uh myrr but just so people are understanding of this because I think it's it you know there's lots of marketers that are that are yelling from

the mountaintops it's all about myrr but then nobody really knows how to apply it and I think that is very difficult yeah it is CH that's where the challenge is because there are some unknowns that are

in there and I think the the case study we're going to talk about here today you know there were some gaps in some of those areas like we weren't even looking at like our Amazon which is part of the

journey like you can't tell me that paid traffic at top of funnel especially if you sell

on Amazon you're not factoring in your Amazon organic and your Amazon paid into the entire like you can't Silo meta and Google together without looking at the entire

ecosystem and that also goes for email SMS organic direct all of that all brand brand Amazon exactly un brand brand Amazon you name it like they all contribute to each other and I think

that's so hard for people to wrap their heads around they're like yeah Ralph that's great it sounds great in theory but I still need to control all my channels because I don't have an

unlimited budget yeah I get that too but like what we're trying to do here is get people to think differently about how this whole thing works because it doesn't work in individual silos it just

doesn't and it never has not since the beginning of time no human nature hasn't changed right that's the thing too is like for some reason we believe that it's still like they see an ad they

click they buy no yeah there's 4,000 ads an hour to people like why is your special the first time the only time it just does exist and the other

side to this which uh you know at some point we'll we'll get our creative folks um in on these uh YouTube lives is to persuade all the way down the journey

the creative then becomes really really important now the creative actually on the on the top end like you have to do the research and you have to figure out what are the hooks what are my avatars

this is old school marketing and advertising like what are the things that are actually going to get their attention what's the new and shiny thing that's different in an undifferentiated Market that makes me stand out versus

everyone else yeah what do you do better than your competitor what do you do better than your competitor and just because you have a whizbang you know top of funnel uh you know awareness type of

AD where you're getting people sort of engaged doesn't necessarily mean that that's going to carry all the way through you have to actually persuade them with different types of creative different types of messaging all the way

through until they ultimately probably do a Google search check you guys check it out you know and then Google you know brand or a high value keyword gets the

ultimate credit from an attribution standpoint and everything else is discounted because like the last couple of clicks came from Google or came from you know the email sequence if they're

on your opin list Y and that's just that's where I think we see a lot of folks really getting confused and the first thing that we try to do is and I'm

not saying we're perfect at this is we try and sort through the data as much as we can and unique every single client

company business region 100% unique yeah this why when I get asked of John what's the best I'm like the first thing I'm like well it depends and pisses people off but you know if

you just said this is the best bidding strategy you're useless yeah you are right because you're gonna hurt half of the people and help the other half of the people for sure for sure or maybe just that one and

hurt like nine others you know because it is that different yeah so let's get back to uh yeah it's it's not I'll make I'll make one last screen share point on this yeah this is where I I love screen

sh I know screen Shares are the best I can't talk without screen shares it doesn't work in my brain like when you're getting together with friends on the weekends and you're trying to tell a story you like do you end up like having

to bring your iPad or like your phone and then like do a presentation to them it's it's nice that you think I friends I see you at a cookout like with

your phone like explaining some joke I'm just like read this I don't need to explain it here's my screen share right um all right the

best part this the best part so we're getting a four this is Blended row as in Wicked This is Media efficiency ratio all cash in all cash out I know we'll we'll get that updated um this is but

this is something that we'll we'll we'll we'll let them know kind of like some new nen clature but Blended Raz is a

4.02 okay in the same time period paid traffic you know all paid traffic M all paid traffic row as I

guess it would say is 1.77 so how do you get to a from a 1.77 to a four because we're paying to

track just the portions of those Journeys that is a very very hard thing to understand because

people think no no no if I got a click it will track that person forever perfectly that's never the case and so that's where it's very hard for third party

attribution tools it's very hard for people that are Runing the media buying to say they never ask themselves what if I didn't track that sale like what if the sale that came in I don't see that

in this campaign once you start that thought process now you can actually see what is really moving the needle and most people

are not in a position to actually care enough to ask themselves that question they really say is if that's not a four I get fired right right right and then

it becomes and then they make their decisions based upon then I'm I don't want to get fired right question right it's why is your campaign horrible well

if I just measure the last step it's going to look fantastic but that won't grow your business but if I just measure the first step it's going to look fairly terrible like 1.77 you're GNA get mad

but if the Top Line myr Target was four now great job keep starting people on the journey I don't care what that looks like so I guess like to that to that question I maybe we can get into

the case study here because this sort of explains this is how do you figure that out I guess there's like there's there's that messy Middle where

you have to sort of figure out how do I allocate my ad spend in order to reach the optimal myrrh yep right exactly right yep and that's that's that's a

part that is unique and that's why I love case studies because the complexity as to which the measurement has to be

done post myr is what is usually hard and very very expensive but it has to be I was going to blur some stuff out here

um and and just for people who are I think we have some maybe some newer folks some we're starting to get some questions rolling in here which is great definitely ask your questions here of us

will get to those uh sort of after the case study but just for those who might not be aware of what myrr ish explain to everyone what media efficiency ratio

actually is quite it's quite the little acronym yeah so media efficiency ratio simply stands for all of your marketing dollars that

you spend divided by all of the revenue that you're receiving yeah so it's actually all the revenue you're receiving divided

by the money that you spend but it's a versus it's simple ratio think of it like if you know Raz it's company Raz right best way to do it is will include

Amazon as well like all channels not just Shopify so and not all cash in but we're

gon to talk about that here is is I think when you start separating them out thinking that paid media and what happens on Amazon is two separate things

this is an Ecommerce brand that we're going to be talking about here like that's a huge mistake it's a huge mistake because you're not really looking at myrr you're still looking at a channel you're like

oh well you know my organic and my paid on Amazon is doing great well where do you think that organic awareness is actually coming from and are you are you bidding on your brand are you bidding on

your brand right and that's you're paid like where do you think that's coming from or like a a high value I always say high value but High intent-based keyword

in your Niche and you know what those things are you know you even skip the optimization like if this non-brand keyword Works in Google

then you can also maybe have that work in Amazon but what's funny is you may get the first click on Amazon but your product that they want maybe isn't on Amazon because it's a skew that's not there and then they buy from your

website like these things go both ways I've seen it before or they buy from your competitor right yeah let's jump into this case let's go amazing stuff

yep so I'm gonna full screen some stuff here because I want to I want to talk about a journey and you probably have all been on this journey whether you're a business owner whether you're a media buyer whether you're an agency

everyone's been on this journey and I want to explain some simple things that are good and bad and what and what happened so this is how my brain sort of works like this is your

brain on John drugs if you see there a lot of drugs too a lot of drugs I love drugs so if you look at the sales here we see you

know kind of a a really nice year-over-year ramp now we see the traffic is a really nice year-over-year traffic that's a

beautiful slide up until very very good just recently what that like a 35 degree angle beautiful now lovely right now here's what's funny is there was a

strategy update um now this is before I got here so it's easier for me to identify because me being more new to tier 11 I could say aha I see what happened here and this is what we are

focusing on is a singular small subset of goals for the client to achieve regardless of how we got there right now what we see here is there is a client

goal a company goal to reach $12 million in annual sales and it was on track to do that now there was a pivotal Point here kind of in March and February where

we see that there is a February traffic going from 257,000 users to 264,000 users but we see the revenue go from 683 down to 513 like there was like aha like

a why a what happened here everything was going so well there was a pivotal Point yeah now the way that this has

been measured recently is by an enca Target the enca Target was kind of all of a sudden after this change here not currently being met and because that

enca Target was in my opinion measured incorrectly not being met it cause pullback so this is not this is not a um let me just stop sharing here because

I'm going to do a different screen I don't I'm very cautious about ever sharing the client information so we're gonna have to do a little bit of a little bit of re re jigging here on my

screen okay good and while you're doing that I'm just going to Define enac in case you're new to this channel here new customer acquisition cost new yeah these people who have not bought before we

have another metric for people who have bought before or all people who buy but enac is one of the mpis one of the marketing performance indicators that's so vital and one of the ones that you

use constantly in order to measure the health of the growth of new customers who didn't know who this customer who didn't know who this client was and now they bought from them for the first time

yep now fun fact we found I found out after I started to investigate that the enac target was only on people who were purchasing through their Shopify site but not the other half of the people

that were purchasing on Amazon and a an issue that as you sell a higher pric product um that is also you know has some shipping tied to it and it's a heavier larger product people want to

buy on Amazon because they know they can get a free tomorrow and that is the case here so measuring half of the global metric of enac we're not measuring all customers we're only measuring customers

on a small subset that was the that was the simple measurement here here is what kind of pushed this into the wrong area I'll share share with you what I mean yeah this here was going up and going

down obviously very simple going up going down orders going up going down if there was an inefficiency this would have continued on this way and this would have gone

down now that's an inefficiency this here in my opinion was more like a self-fulfilling prophecy this we didn't start pulling back because of this this started going down because of

this and you say well John there was a time period where you said that there was more users here and less sales that is

actually true yes the issue that we saw let me just switch this over here so I can get back into my other view there we are sorry for the Hot

Potato on screen share but very susceptible to never you know share client information so I I want to use this as a case study not as not as a specific example yeah the reason as to

why February and March went up here and the February March dipped down here was there was an internal uh discussion that happened on

a on our client side that says we should start to test other products the reaction as to

which like unfair like that's not unreasonable not at all it's a fine idea however absolutely the execution though was not measured correctly and that's

where I and and on all parties for good for good measure though for what everyone believed was actually the health of the business which is there was no egregious it was just a little bit of Target and what what ended up happening

was is we would like to test other products okay the pivotal moment was let's allocate ads spin appropriately and additional ads spin appropriately what end up happening and this is what's

beautiful is what end up happening is when other products were introduced a lot of agencies media buyers clients would agree let's pull some asmen from over here and push it into the other products to test everyone on this call

probably says yes I've done that before I've reallocated asend and try to diversify my my product line you know we had a a fairly High concentration on a

singular small group or singular product and we wanted to build our Fortress into diversification it's like a stock portfolio not a bad idea makes total sense yep what ended up happening though

was the pullback on the bestselling item was kind of the The Tipping Point into into the reduction so the Tipping Point into the reduction was these other

products aren't doing as good as our main product that was not not yet seen what end up happening was enac was affected and CAC the cost per required

first-time customer went up it was more expensive to customers right now the flag there is okay these other products here aren't as good as our main Pro product were they more expensive were

the same price range I'm not fam yeah they're they were slightly more expensive um but the volume the conversion rates everything started to to falter a bit okay so it was interesting on this now now let's take a step back here because everything you're

saying is John yeah we've probably all been in this type of situation before but the total Topline Target the total goal was 12 million in annual sales so a

very simplistic thinking was well what if we just kept the traffic going here and kept the sales going here by not pulling any sort of asent out of the bestselling item but by adding more

items with incremental spend but at appropriate level so that it doesn't hurt and CA too much which is a metric we're measuring but to still keep us on track of the goal of the $12 million so keep going with the ad spend on the

bestselling product that's obviously in a nice trajectory at a 35 degree angle but then add additional budget for testing this other product maybe at a lower spend and sort of get your

messaging right sort of figure out your economics figure out your Your Hooks etc etc yeah add copy B that you're restarting honestly that was but the the

spend was reallocated as opposed to added in in the other because that's like a beautiful looking chart right and and I think so what we're talking about here is not a traffic question what

we're talking here is a business question it's a fundamental strategy for a business to want to diversify into other products makes total

sense however at the expense of what y you have to sort of think about this think through it especially if you've got a nice trend line like ad spend

equals new customers at a CAC that actually makes sense or an end cack that makes sense you take away that all of a sudden the business fundamentals

change and and that's what was interesting is we ended up slightly measuring incorrectly and I was screen share here and I blurred this out here this here for example this was the

bestselling item right here there was 58,000 landing page sessions uh in the last 30 days which is 53%

lower than February of this year which is the Tipping Point of going from our bestselling February to our decline in

March at this time right now we are 53% less than where we were in February that's first item number one to think about okay we're 53% down in traffic traffic and conversion we're 53% down in

global bestelling product on the bestelling product proven itself all things being equal here MH you know but that sometimes this happens like you have to shift we've had many customers

that say hey we're going like Gang Busters but we ran out of inventory and we have supply chain issues and we can't actually manufacture like that's happened I can think of a dozen things

off the top of my head so you have to shift almost but these guys didn't have that problem no that's what was interesting is we just it was it was

sort of a if we measured correctly like if the if there was a person on the call that says okay if we test other products

how does that help us continue to grow to our $12 million goal exactly Bingo and that's that's where all stakeholders have to measure the same thing going back to the beginning of the podcast

when I say well this person's measuring that this person measuring that there's a maybe a a vice president Market that says hey let's test more products and the other person on the other side says yeah that seems reasonable but now maybe the stakeholder as measuring top and

goal says hey why did we all of a sudden hit a Crest and start going down um those are all of things things that measurement is so extremely important and the way as to which it was measured

starts to get now into my other thing where attribution TR M so I'm gonna share screen again because this is kind of also the explanation as to why it was

okay to do this in the beginning when we look at this here this measurement uh piece this is measuring quarterly Revenue targets and quarterly spend

targets and you can all see here that it was set up for beautiful success and was profitable and there was a a pullback when there should have been a push so

the reason why this come up is is the client says hey I believe that we're spending more money and we're not necessarily achieving more that feeling is correct the media efficiency

ratio stayed about the same at scale and and actually got a little better at the drop but the Topline goal was still ignored the reaction as to which the client mean the client their suggestion

was hey I believe we should pull back in paid revenue or sorry paid reeven in paid media well when you look at a graph that's going up then going down if we pull back

more SE more more sessions more users more more know clicks that revenue is not going to hit that Top Line goal yeah and this is proven out by myrr here's

where was proven by myr q1 Revenue was 2.25 spend was 690 mhm that gave us a 322 myrr this is what

myrr is spend six 690,000 get 2.2 million 3.22 media efficiency ratio the goal though the revenue targets needed to be higher so you'll

see how the revenue targets go go up as it goes further down now these two are reset because of the issue but you'll see that it goes from two it would be going to two then to three then to four

closer to five so the spend should go from six to 9 to 1.3 to you know you see how it starts to go up here then when things started to not go

as great you see a pullback 541000 developed 2.1 million well that five that that reduction actually made it 3.86 m sure that yeah more profitable

right right we all know that when you scale things get a little bit tighter when you pull back things look a little bit easier because you've already paid for the users ever going to buy anyway right so economies of scale work both ways now what was interesting is when

you're looking at this if I'm if I'm someone in an ownership position my question which was my question to the team when I first started reviewing this was well if we needed our Revenue Target

to go up why did our spend go down very simple and the Catalyst was well we decided to test other products and it was kind of agreed upon that the

reallocation of funds would be used for diversification fast forward now a few months later and now we're off goal MH and now we're wondering why why we're

not hitting their target well it was simply because of that one decision and that's where I think all stakeholders need to discuss what is it that we need

to do to achieve the continuation of what we're doing it may be not necessarily reallocating spend it's not channel it's not it's not Revenue it it's it's actual you know adding an ad

spent to what is working to a point where that would be the point Dominion return and last thing I'll say is the reason why I believe most people think that attribution Trump's myrr is as the

way that it is currently measured is my screen being shared I don't see it oh there it is is this is the revenue distribution Trend paid media delivered

900k okay but organic 615,000 means that no one ever Googled their brand name organically which yeah that's that's going to be that's

impossible and then email delivered 156 but no one ever signed up for an email that came from Paid media so that's another thing that's impossible then Amazon organic meaning that no one ever

Googled the brand name on Amazon ever from a paid media and made, and we never bid on our brand name in Amazon for

371,000 John John wait a second people people see an ad they click and they buy like that's how it works for the first time oh it's 100% of the time it works

every time 100% of the time 100% of buyers see your ad click on it on that ad get the attribution back to that individual Channel and then they buy and that's the way that people like what's

wrong I don't get it yeah and what's interesting is this is where myrr is healthy however because we're measuring Silo the suggestion which I would

disagree with is this has to go down none of these would ever be affect affected and we just need to take that ad spin that we used to direct to there

and test maybe other channels well that's actually that's the existing conversation that we had when we took a step back we started to investigate a little bit it's actually yeah if we're 53% down on our bestselling item and

we're seeing a 40% reduction in the last 30 days compared to our best month very very good Trend if we push back in there would myold if so we are now back on

track to our $12 million our annual revenue Target that we all set out to achieve last year so the resolution of

this is that I think this is a you know we're kind of we're talking about like something that was an oversight I mean the business is still

doing well yeah but it's not doing as well as it could have if we had looked at it this particular way and this is just sometimes what happens like you have to

be able to course correct you have to be able to test things I get it all that stuff is five steps forward one step back okay we're on that one step back right now we're on just a step back like this is what happens in media buying

this is what happens when you work with an agenc in business in business like oh my god well sometimes it's two steps forward five steps back but you know the point is is that like that's business

that's life it's not going to all be like a perfect chart lower leftand corner upper rightand corner all the time because humans are involved in this and they're going to make decisions that maybe

aren't in the best interest of the Big Goal the other part to this which I think is super important when we did this when we talked about this prior to getting on this live here today was I

was like who is looking at the Amazon and the organic side of the equation or is it just so siloed and this is where I

think clients and customers you know I would say clients love to do this and I can think of a half a dozen off the top of my head that are ter 11 clients right now they're like well we're not going to

give you guys credit for any of our Amazon or organic or email sales it's just going to be paid media and then you're going to be held to that accountability going back to attribution

right for just the paid M paid channels that my question to you before we actually talked about this is are we factoring in Amazon are we factoring in all these other things with regard to

myrr and I forget what the answer to that question was I think we were looking at because we're on the p PA side we were looking primarily on the

paid yeah myrr actually was never measured which was interesting okay so that of the big idea here really it was a enak kpi if this looks good we hold

tight got it but the Topline goal was 12 million if the Topline goal is 12 million in sales I would assume you mean 12 million in profitable sales right

which means you take into consideration your gross profit your net profit those things like that which means you then come out to a blended row as also known

as myr which is if I need to get to 12 million how much can I spend you can spend $4 million no more in one year time to make 12 million and I will be

happy excellent that means we always have to keep and maintain a three mrrr that had nothing to do with testing other products

didn't we're on track yeah so testing other products was a now this is changing the goal our goal no longer is 12 million in annual sales our new goal

is can we diversify our products to a healthy amount now if we said I need you to keep a $12 million goal but also add

in 80% more skews into the equation wait a minute that's like saying take Toys R Us and turn it into Home Depot and continue on the sales Trend like we're selling different

products now yeah so you've completely changed like the fundamentals of the company exactly now it's the same product but it's untested which means it

will it will only put the goal in Jeopardy so if you want to diversify you know into different products and you've got one bestseller

that's just continuing to do well MH like don't take ad spend or media spend I'm not going to say just I'm going to say media spend just in general away

from that best product how do you test the other because this is a this is a question for a lot of businesses they're like well you know I'm kind of a one product wonder and but I've got like all these other SKS that I want to sell and

I want to test how do you do it in such a way so that you don't harm the big goal that's beauty of myrr it's a beauty of myrr so for example if you have one product that looks like that 35 degree

angle for last two years you continue on with that the other products are now uh a separate meeting to discuss right it means what are we continue to do in keep

on the trend then the next 30 60 901 you know 50 days we are adding 10 20 30% in ad spend over that course of that main product and here's the creative and here's the traffic and here's new customers all that here's how we measure

Amazon that all stays exactly the same as we have been doing for two years Next Step what incremental ad spend what separate additional ad spend can we used

to test these other products at a safe level to what never fall below a global three mer right if you add in an ad

spend to new products and it gets a 2.5 and your main product is getting a 3.5 you have still a 3X media efficiency ratio profitable mer if you add in more admen and things get worse you pull back

but you're still focused on what has gotten you there in the first place and not upset that right I mean it depends on how much if you're spending 10,000 on one and a million on the other like a 3.5 versus a 2.5 it's going to skew

things it's not going to be exactly a three but the point is is like you have to test it in a separate like sandbox Silo keep things going in the right direction for your primary product right

I mean if you're getting a 2.5 and your top Line's getting a 3.5 you're not like scale scale scale the 2.5 I mean you can until the point where it drags it down so much now that you're not profitable but those are things again you that

those are things like okay now more audience testing more creative testing more Channel testing like that is now project number two that's that's project two right exactly and I would submit to

you like a 2.5 right out of the gate out of a new product that you've never sold before like that's pretty good all you need is you need to then go over to the creative side and say Hey you know these

Hooks and these angles and these videos and this you know particular way of positioning it the pro in the in the marketplace versus competition for that separate product like we're gaining some

traction let's take our best stuff like there's probably 10 or 12 ads in there and maybe one or two of them are actually getting you know really like the higher engagement or maybe inapp

Rass that seems like it's higher you know lower cpcs like some other secondary metric so many different metrics but like a

2.5 versus a 3.5 for a brand new product like you're on the right track you're getting there yeah that was hypothetical but yeah yeah I'm just saying I'm saying like that's how you kind of do it like

you look at them as two separate things cuz I I think you know in this particular customer like they have the right goal in mind like they're like all right we have a product that really sells at a certain point maybe we'll saturate the market maybe we won't but

so we need to diversify plus we sitting on this other inventory we want to get rid of it right you know so I I get it you need to do it absolutely it's it's it's agreed just to not to test for sure

like I would say like if it would be if we have all these things sitting in a warehouse and it's a similar product to our bestselling product absolutely test it out of 10 prodcts you might find two that are just as good as your main one and now your now your 12 million goal

turned into a 36 million goal over the next three years excellent but but the way to execute that is with all hands on deck saying aha can this jeopardize why we're all here to begin with yeah and

you you never know you might find a couple of products that actually better better or people buy that product and then they buy your bestselling product and now Mur is even greater because TV so many things we can talk about there's

so many different things uh I want to jump into a couple yeah I'm going to get into the questions I'll I'll read them off to you uh rattle uh concrete repair

man LLC that's like the greatest name ever uh right there yes to many what do I do when

blank it does depend 100% oh so he's just agreeing with like it always depends yeah concrete repair man LLC is a smart guy yeah then he also said however would you agree that there are

certain General strategies to take for a specific situation goal figure out which one works best absolutely absolutely um what's interesting is the strategies are vast and multifaceted and even layered

but the measurement should not be um the measurement should be very very static you can use other influencing metrics but what you are measuring to that goal has to be Rock Solid and I love the fact

that you actually answered asked this concrete um because Dave then also says I'm I'm not going to skip anybody but Dave says why use myrr versus total revenue total adspend and just look at

toal total profit over time myrr is in is your ratio to your Blended uh your Blended metrics so when you look

at so it's not versus use total revenue as your target but the way to measure that is myr so for example if I need $10 million in total revenue Dave I couldn't

say okay I'm gonna spend 50 million to get there I achieved the goal but I have A3 mrrr M like okay now I'm I'm I'm homeless but you hit the goal like so

that's why you say I can hit the total revenue goal but I can't lose money getting that total revenue because it's not regardless of spend it's how much can I spend to hit the total revenue

without losing a profit right so if you want to look at total profit over time my question is those have a lot of other miniature factors to do which is what

has good LTV what works organically versus doesn't organically do I have to pay for that sale when you don't have to pay for your sale your my increases how much more can I lean on my email and SMS to continue with that LTV so I don't

have to spend additional incremental dollars by bring in people back to have an LTV which also increases mer so all those things then then say is how best what's best strategy can I use to

increase the myr as much as possible to achieve that Revenue to Total right I think also and the point of what Dave mentions here is like he's thinking about total profit like profit like at

the end of the day I I've done many videos on this it's like the the aim of business is profit because you have to actually the only reason why we're all here no profit no

people right so uh hard to achieve your vision when you're not profitable unless you just have you know lots of VC money or your Jeff Bezos when he first started

Amazon um profitability for 10 years but or if you want to run kind of halfway correctly and not be profitable but still bring in a ton of money you're the government yeah absolutely just operated

a deficit just keep borrowing money from the Federal Reserve uh it's a whole other conversation uh so anyway but you know you have to know what your ideal myrr is based upon what your your

targeted profitability percentage is and like every business has to understand that and then you figure out what it costs to acquire a customer and then you figure out myrr based upon that so yeah

we have a whole segment that we've actually shot individual videos on all these npis andac aov na aov versus know CPN in Raz blah blah blah so there's a whole bunch of more stuff coming out um

Ben actually ask he says uh love your work guys insanely valuable thank you B really appreciate that um says how do you convince client to let you start using mer as the main kpi if they don't

really want to change and that is a great question I I spent the last well three years ago I spent a year doing this my number one thing that I've

always gone back to is the reason why you get fired that's what I would tell the client I would say if I can keep your

media efficiency ratio above A4 and I can scale your spend and your Revenue would you be happy and

profitable but fire me because one campaign has a 68% Raz then the flip side if you're hemorrhaging cash firing people closing

down your shop and now you are losing your 20-year dream of the business you want to be successful with but I came to you and said yeah yeah yeah but I have a 500% Raz in that campaign would you say

okay I'm gonna keep you on board so the people will only fire you off of myrr period period you all have

been fired off of myrr that's it yeah that there's that is every single scenario outside of like the minority of his just like hey you

you you took my website down but what I'm saying is you never had a client say I'm I'm profitable and scaling but that campaign doesn't look good you're fired yeah that's that's the biggest thing to

understand is they will never they will never fire you when the myrr is good and they are always happy when the myrr is

good try to measure myrr show how you're influencing myrr and keeping that static or even maybe a little bit better at a slow and

nice incremental scale because once you've proven that out they will trust you they trust profitability your explanations as to which you're making are not attributed because that looks like that I'm going to do this here is

I'm going to engage this Target because I believe I'll go through the funnel this way I will spend only this amount of money there so that my myr looks good so that's the biggest biggest biggest aha moment is you will never be fired on

a very healthy and scaling revenue and static myrr that's every on this call I I will say this though you the individual who's managing that client

has to change the narrative in a forceful and we're going to give you the the tools here to be able to help you with this in a forceful and

knowledgeable manner because at the end of the day they're not hiring you for a 300% row ass on Facebook they are hiring you because they want more merrr they

just might not realize it yeah so that's why these mpis are so important for you to understand them and be able to be armed with something that then says this is the stuff that really matters and

maybe we've measured it differently in the past and I've seen you do this in a couple of client calls where it's like you're emphatic about it they're like yeah that makes a lot of sense when you explain it and you can back it up it

becomes back to business metrics versus marketing tactics and you know inapp metrics that can lead you astray um I know we've only got just a minute or so

left here I just want to make sure that we get to everybody who has asked a question or just about and obviously um

when it's uh when when we do these when we have like a little bit more than like 15 minutes to prepare for it you know we'll certainly uh have a whole lot more

client customer interaction so there's a couple more questions here on enac which we can probably get to in the next live but the the the goal here is to be on

these every Friday we just have to pick a day a day in time and then have it on a regular recurring schedule I sorry om asked a question I appreciate uh we brought to our attention how do you

reduce the cost of new customers and CAC I know we're over time but here is the first thing when you're looking at your benchmarking metrics which is another live and another video that we're going

to be looking at if you're looking at multiple sequences of a customer Journey where they find out about you where they click where they be remarketed where they convert and where the LTV you should understand a customer Journey

first you will never affect enac unless you truly understand how much you're paying for each part of the customer Journey once you identify that you're

going to see areas that you are overs spent on or if you increase in only that specific area because you're trying to force a section to do the heavy lifting of all sections like push more

remarketing to help everything you'll see that that will become inefficient and your enac will go up as you add in more asmen to that particular area you will only be able to reduce enac by saying this takes way too long I'm

spending way too much bringing too many people in and I'm not actually you know bringing everyone else through the Journey I'm overspent on my awareness campaigns or I'm under spent on my

consideration campaigns to really keep selling the awareness campaign you're overs spent in a part of a journey when you find out the overspend in the part of the journey and you pull that back you'll see enak reduceed volume will not

change and your cost would become less because that was overspent yeah we could do a whole show oh my God it's so good on that I'm so excited I'm so excited

but wait there's more or two more mpis for the price of two that's right that's right our uh our MPI lead magnet is almost done John it'll be done by

Thursday night so people can actually you know go walk along you know sort of go along with all these acronyms that were're throwing out here but uh anyway

this has been tremendous thanks for everyone who did come last minute notice here we'll figure out um these are gonna be on Fridays Friday's a great day not

this Friday but moving forward yeah we'll uh we'll let everyone know on our socials what time that will be we just it's you know it's like hurting cats between my schedule and John's schedule

so we will figure that out and uh we've got a lot of stuff to talk about here a lot of really interesting things which is very exciting because I don't see

anybody talking about this Moran so it but it's weird because you even see inside of the questions and answers it's like oh I understand like this makes sense like very about like it's hard to

deny this but it's very hard to get there unless you've been doing this for 10 years with hundreds of millions dollars and spending thousands of clients like yeah this is what you learn yeah well this is what we we hope to educate you on and and help you

understand it because this is where marketing is going this is where the puck is going as way Gretzky says it's not where it's been so awesome thanks so much John ran for this tier 11 live

thanks for everybody for coming on uh can't wait to see you on the next one and we'll post it on our socials when exactly that is probably about in a week and a half all right so until then

thanks everyone see you bye bye