John:

So what the Facebook in app shows is, wow, we spent 81 percent less and made 41 percent more revenue for the lack of top line. Yeah. So this is going to be a slow death What other marketing does he run facebook? yeah, and asked for access to his facebook so that Pleasant and I can look at What they're doing because he said in the meeting I had with him that they've switched from outbound to mostly remarketing in their facebook So we wanted to go in there and double check he's only running PMAX in there. So we've talked about relaunching standard shopping and seeing what, but pending what they're doing in Facebook, cause we want to actually see it for ourselves and not just take his word for it. not only did he switch heavily to remarketing, he also, it looks like pulled back. This 30 days compared to previous 30 days. So there's an overall drop of 24%, which I would imagine, did that sometime around March 20th. Yes. we met the end of April, for the first time. And he had mentioned recently switching over the PMAX. So there's a 40 percent loss in traffic and 81 percent drop in sessions by social. let's just say he had a UTM whoopsie daisy. that would mean that direct would go up and it's not. So it's definitely a pullback. which pullback search, pullback, direct pullback, direct sales. now search is up here, but the reason why Facebook has now attributed is they did go probably towards more remarketing, so what the Facebook in app shows is, wow, we spent 81 percent less and may 41 percent more revenue. For the lack of top line. So this is going to be a slow death, but the bad part is now it's going to be solely up to Google to bring in the new traffic, which we're using a platform. That's just going to try to hover at that point. this is also reducing sales here that we can see. So there needs to be a prospecting source somewhere. and I think that the prospecting source. my opinion would be I would be going after the angle of election season and instability in the socioeconomic climates. that would be my recommendation. How's the pricing competitively? from what I understand, it's, fairly competitive not like the cheapest, So they sell Dura Steel is the brand they just started putting on Amazon. Apparently. But I couldn't find anything with their company brand, within Amazon, but he said they're on there. I'm hoping to clear that up with him. Gotcha. Gotcha. Gotcha. So water distiller, distill water machine, classic distiller, distill. So I think one of the reasons why we're seeing a stability is obviously it's a lot of good cold traffic. No, one's really looking for the brand name. but right here, best hit the fan water filter. This is that pepper thing right there. this is definitely gonna be a prepper type of mantra. I would share this with them. Just say, hey, by the way, with remarketing pulling back, we're having obviously a lot of good success with Google. Now, our cold traffic in Google is good. That's why, with a 40 percent reduction in Google Meta traffic are orders didn't decrease, but there is a increase in return customer rate. So this could be a false positive for the short term until that atrophies because returning customers can only buy so many water filters. so the data is already starting to support our theory about what's going to happen. Yeah, so if we look at new customers, since March 21st, this is when they switched to remarketing. February 4th, March 20th. Okay. is what we get to compare that to. So 1. they lost 26 new customers. between them turning off meta and going to remarketing, but since they lost 33 new customers, it was falsely added up to. now we have a few existing return customers. And it looks like only just recently here. I think that's one of the reasons why since the 28th, we're probably having some good success. Yeah. There's your success here. Success here. 81 percent more orders, but that came from all the returning customers. it could have been a restock. It looks like they're using a lot of in app ROAS to be like, yeah, we're successful, but they're missing the forest for the trees, but they really are stuck on the ROAS. Yeah. Yeah. That sounds about right. That's why this thing's all flip floppy. I would draw them a bigger picture. Say if we take a step back and we don't take any sort of in app platform metrics and distill what's going on here. they'll like that joke. Then we look at the loss of their cold traffic has done, a small number, in decline of new customers. It's been recently made up with existing customers. But those existing customers will become less valuable over time because they're going to be doing replacement filters, which is also why they probably saw a spike up in return customer rate and the drop of their AOV by 38%. and those are gonna be like, gasket set parts, and plastic lids, and a switch. So they're a couple of takeaways is losing core product, sales, new customers are down. 33 from the switch to remarketing. What does Google say in the last seven days? I would imagine that's probably showing some, Dura still distiller parts that might be coming from their existing customers or people. People have purchased from them before that forgot about water distillers. com because that is a very generic name and not only resellers are not investing in their brand. so that makes a lot of sense, especially if jurors still went out of stock somewhere. This is like woohoo free existing customers that probably didn't buy from us before they had a backlog issue several months ago. They ordered well in advance because they had been having procurement issues for a while. Makes sense. It's cool when you come and take a step back. And once you start, looking at these things, I would say, in app ROAS on meta is most likely up 100 percent or more. that'd be a good question. In app ROAS is most likely 100 percent or more. Yes. But that's also because we're No hemorrhaging our own clients. return customer rate is up 30 percent which is offsetting the top line metrics to a, slightly down trend. But our future business is at risk. if you're measuring business performance year over year. This is down 30%, down 50% down 30% down 13% because that's up 42%. so this is what's interesting is this here is floating. That these here are all metrics. So these are your correlating metrics. Your return customer rates up 'cause they're buying refillables. And because of your own customers it's up because, they, they trust you. But our top line is we're going to see a slow decay and that's why year over year, this will say, we need a cold traffic, channel to push. Now performance max can probably do that. it may not, It's a full build. It's a Okay. What is enabled? Standard chopping is not really the answer here. it could be because they're going to be doing a lot of remarketing on meta, but I think that their meta was actually performing better than what they saw. They were just judging it wrong. actually let me do that and do this theoretic. so if we did January to the 19th year over year, What was going on between October, 2023 and December, 2023. Do you remember? Oh, I don't know. I just took over and I don't believe we touched on that during the meeting. it might have been the stock issues that, that was a kind of a pervasive issue for them for a little bit. but yeah, from a marketing standpoint, I know they've been reducing their budget gradually from, I think they were at 8, 000 and they've been trickling down to 3, 500. so that might be a factor. Yeah, it looks like when everything was being pushed, especially on Facebook, Your direct is going to go up. Your social is going to go up. So your search is going to go up, just not as much. Cause it's going to be the return brand. but this is year over year, fourth quarter, 23 to fourth quarter, 22. Now, fourth quarter is going to be always like, the land of milk and honey, Oh, that's a burkey ver like, competitor. I would definitely push less hard into metal remarketing. That was too big of a shift. Your in-app. Rowa is gonna look amazing until you're out of business. so that'd be the first thing to say is, Hey, trying to do good by your business. This is not something that is sustainable. Half the traffic is not sustainable. I would say, and then make the mention that the mix between meta and performance max is performance. Max is going to remarket heavy and if metas remarketing heavy remarketing is always going to have a better row as just like brand, it always will just at very much lower volumes. it's almost a fact of do you want high profitability or do you want, scale or a mix of both? If you want high profitability, then just hang tight here. if you want profitability and scale, we need to start pushing more cold traffic. The sources that the source as to which I would recommend would be in meta just because it's an election year. And this is where we're going to start to see more prepper mentality closer and closer to the election. There's also Trump is on trial. he is of the base. I would say that this is probably going to mostly with. And the results of those trials could cause potential for the theoretical, socioeconomic or not socioeconomic, but just the social climates really. so I think he may be missing a mark on capitalizing his base, during probably one of the most important times of the year. Yeah. so even if we just don't put all back into where, into there, but I would say that's, that would be the angle I would begin to test and then watch top line. there's, you can see extreme correlations between their shifts and what they've been making now, what in a bro as potentially would look like, but what's actually going on in this business. What I really want to do is, yeah, I really wanted to get us that access to facebook so we can take a look and then, hopefully softly convince him to let us take over as meta so we can do this. All together in house instead of trying to fight with his meta people and fight with him and, that's the goal. the thing I would say is, hey, if you're going to do all remarketing, why don't we just do all brand? You're going to have, TEDx's across the board easy. Now, no one ever find you again, but all of that returning customer every day, we're going to go down to the 30 percent of people that are left, which is fine because apparently Google can go down only to 50 percent of the people that are left. So why don't we just make the full shift in there and just, ride out that high amount of volume until, we part ways. would honestly ask him that, just say, Hey, not to be exaggerated, but if we're 50 percent of the meta traffic, why don't we cut out, 50 percent of the Google traffic? we're going to be down a hundred percent year over year, but it'd be extremely profitable. No, I don't want to do that. we've already made one of those changes. So I'm asking, I'm curious as to why that's okay. We were halfway there. So all it is to be said is when you poise those questions, you want to get them thinking differently. Looking at Navarro, I'd be like, crap, we can do the same thing on Google. All I have to do is just go after your brand name and then boom, amazing results. Yeah, we're already 50 percent of the way there. If we go a hundred percent of the way. Yeah, you cut out 77 percent of your traffic and make, 50 percent of the sales. Great. that's pretty cool. Look at that. You look at how much profit there minus 77 minus 53, that 20 percent right there is just pure cash in the bank. Why would we do that again? I don't want to do that. so why don't we think about how to slowly push rather than just, cut off one leg in a marathon. Yeah, lots of work. Thanks, John. You got it.