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Welcome to the eCommerce podcast with me, your host, Matt Edmundson,

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the eCommerce podcast is all about helping you deliver eCommerce.

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Wow.

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Now I am super excited with today's guest, who is Daniel Budai from Budai Media.

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And we are gonna be talking about the secrets to retaining

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customers with email marketing.

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But before we jump into that, let me suggest a few, the eCommerce

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podcast episodes to listen to that are also gonna hit.

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This amazing topic of email marketing, try Gabrielle Rapone's, why everything you

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know about email marketing can be wrong.

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That was a great conversation with Gabby, uh, and another one,

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my, fantastic conversation with Jessica Totillo uh, about how to

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convince customers to buy from you instead of your competition.

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Now, this episode is brought to you by the eCommerce Cohort.

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which helps you to deliver eCommerce Wow to your customers?

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Yes, it does.

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Now.

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I'm sure you've come across a bunch of folks stuck with their eCommerce

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areas of their business and miss.

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The big picture, well, enter the eCommerce cohort to solve this particular problem.

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So you're gonna want to get in early doors and get these fantastic rates.

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You are definitely, if you are involved in e-commerce, uh, at all in any

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way, you should check out e-commerce cohort, you're gonna learn loads.

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And it's all online.

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It's an absolute doddle.

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Yes, it is.

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Uh, but if you've got any questions, email me directly at

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matt@ecommercepodcast.net, uh, because let me tell you it's, it's awesome.

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Now all of that said, and without further ado, let's jump into this.

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Here is my conversation with Daniel.

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Well, I am here with the amazing Daniel Budai.

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Daniel always has a knack for business.

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He's always had it.

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It's it's always been there, but it wasn't until he started learning about marketing

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and eCommerce that he truly found.

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His calling now as a former geology student, can you believe it?

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Right?

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Uh, he never would've guessed that he would've ended up owning a seven figure

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marketing agency, Budai Media now, Daniel

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realized early on that most e-commerce business professionals lacked the skills

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to implement emails professionally.

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Can I get an amen?

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We all know what he's talking about, right?

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And that's why he founded his agency Budai Media with the sole purpose

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of helping eCommerce brands build strong relationships with customers.

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So these days Daniel spends most of his time drinking

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Americanos , which I, I don't do.

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I'm not gonna lie, uh, and running Budai Media.

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Uh, but when he is not working, you can find him playing, guess what of

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all sports, basketball and spending time with his wife and two kids.

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He is a family man, but he also loves his coffee as well

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as traveling around the globe.

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Daniel.

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Great to have you on the show.

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Thanks for joining us.

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Great that you are

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here.

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Yeah, I'm really happy to be here.

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And I love the introduction and I love the energy that you really,

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you know, everyone can feel.

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So, yeah, I'm really happy to be here.

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Oh, good.

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Thanks man.

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Yeah, I, I, uh, I dunno what I'd be like if I drank

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coffee, maybe it's be a bit too much for the world to handle.

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So where are you?

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Whereabouts in the world?

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Are you.

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so at the moment I'm in, uh, Hungary, Budapest mm-hmm . And since COVID, you

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know, in the last two years, I was mostly here before I traveled a lot in the US

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and, uh, in Asia and actually I'm planning to move to Poland for one month because

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I'm really interested in their culture.

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And, um, yeah, I just want to see Krakow, Warsaw and those cities.

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So that's my next plan this summer.

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Oh, wow.

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So

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you, you do like to travel, you do like to get.

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um, I would say I'm not like a, you know, crazy digital nomad mm-hmm when

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I stopped being the geologist guy.

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As you said, when I finished the university, I had around half a year

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when I traveled like crazy, you know, every week I moved to a different

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place, but I realized after six months

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it's really hard to focus on your business.

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Yeah.

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And of course you don't have to, if you don't want to do it, but

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I wanted to scale this business.

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And nowadays I spend at least three, four months in one city in the last

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two years, actually here in Budapest.

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And, uh, yeah, but I still like traveling I'm and I'm

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planning to do it in the future.

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Yeah.

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Very good.

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Very good.

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So how did you go from being a geologist to a email expert?

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What was that journey?

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Cuz that's not, that's not standard textbook, is it?

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It's not written in any sort of career progress manual that I've come across!

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Yeah.

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Yeah.

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So I also have my podcast, the e-comm show, and I always ask

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these questions from the guests.

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From older guests, because I can hear so many interesting stories and here's mine.

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So I studied geology and earth sciences here in Budapest, in

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Hungary for almost six years.

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And I finished my Master.

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And back then, around 2016, the oil prices dropped mm-hmm and

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quite the opposite then now.

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And, uh, it was really hard to find a job with geology and

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find a job in the oil industry.

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So, okay.

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I was like, let's try to, you know, make some money and let's enjoy what I do.

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Um, so actually my first job after university was a call center job.

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I was a customer support agent and I oh, wow, really hated that work, you know?

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Yeah.

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So I spent there seven months, but at the same time, in my spare time, I,

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uh, started learning copywriting and I got a few small clients through Upwork.

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This is how I started out.

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And then I was lucky enough to quit my job after seven months and I

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could get bigger and bigger projects.

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And at some point I realized that copywriting is fun.

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I really like it.

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I think it's the core of marketing and understanding psychology and, you

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know, marketing, but ultimately just not for me, I prefer building a team

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or, uh, thinking about strategy also.

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I'm not a natively speaker, so.

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You know, it would take a lot of my time to pick up all of those skills.

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And I just decided to hire copywriters and I started delegating the job and

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focusing on sales and managing my people.

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Mm-hmm and then I think this was around 2017 and what I also realized

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is, what if instead of just copywriting, we create the whole strategy.

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We build the whole strategy for businesses.

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Mm-hmm . At the same time, I got contacted with a really big eCommerce business.

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It, I think, I think nowadays it's a mid eight figure eCommerce business.

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And back then it was huge for me.

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And we started working together and just naturally I started, you know,

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emerging into eCommerce more and more.

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And yeah, I, I, you know, after like one, two years, I could see

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that, okay, I can hire people.

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I can manage them.

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Um, eCommerce is fun and it's a really profitable business

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for, for everyone basically.

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Uh, you, you know, you can scale it quickly.

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If you have the right people.

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So just naturally I niche down into eCommerce.

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I hired 26 people in like two years.

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Oh, wow.

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And by 2020, I think we had almost 25 people, few people left and

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yeah, now we are actually, at some point we had more than 30 people.

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Now we scaled a bit back to 26 mm-hmm and 25 clients around 25 clients.

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And that's where we are now.

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So fantastic.

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Still, e-commerce not just email marketing, but retention, marketing.

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So we help clients with loyalty programs, SMS marketing,

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even physical mail sometimes.

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So that's what we do nowadays.

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Yeah.

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Yeah.

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Fantastic.

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Well, I, I.

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That's quite coincidental because the two topics we are gonna be talking about

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today, uh, we're gonna get deep dive into this, um, retention marketing.

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I think the title of the podcast this week is the secrets of retaining

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customers with email marketing.

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So we're gonna get into all of that.

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I also want to grill you a little bit, uh, um, Daniel, about how, you know, uh,

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how you grew your business and the lessons that you've learned, I guess, in that.

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Um, because I think scaling rapidly scaling is something that I think a

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lot of our listeners are gonna, you know, if they're in eCommerce and

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their business rapidly grows, I think there's some something to learn there.

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So we're gonna get into that, but first let's get into this whole, uh,

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retention, uh, retaining customers.

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So you talked about doing that with email, with SMS.

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Um, is that something then that you've evolved into over the years.

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Um, that your agency has been growing, that you've sort of got more and more

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into this whole retention, uh, specialty.

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Definitely.

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So at the beginning I started with email copywriting mm-hmm and for

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mostly for eCommerce businesses.

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And then, uh, what I also realized is that, okay, email is, is a great

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marketing channel, but what if we go maybe one level higher and we think a bit

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more holistically about the eCommerce.

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and that's why we started doing, uh, SMS marketing messenger marketing.

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And I think the logic behind those channels is really similar to email

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mm-hmm and direct response marketing ultimately, and also loyalty programs.

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So we focus on retaining the customers.

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And also we just recently we started measuring metrics such as

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average time between two orders.

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Customer lifetime value, historic lifetime value, and future certain

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tools can help you with this.

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Um, for example, Klayvio and really measuring these metrics

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and reporting to the businesses.

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So they will know how much they can spend on ads on the front

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end side to acquire one customer.

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Yeah.

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Yeah.

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Yeah.

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And I think, especially small e-commerce businesses, they ignore these numbers

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and they don't have this mindset and that's where we come in place

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and we can educate them and help

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them.

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So the customer lifetime value, the historic lifetime value.

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And another one you mentioned there was the average time between transactions.

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Um, mm-hmm and, uh, different people call this different things, don't they?

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But one of the things that interests me about this is, um, this is

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one of those metrics that I think has been hidden for a while.

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Uh, people have not really talked about the average time

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between transaction that much.

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Uh, but if you're in a business that, that thrives on repeat customers,

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Yeah, which fundamentally is a great eCommerce business to be in

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then tracking this metric, I think, starts to become quite important.

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What is the average time between transactions?

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What have you noticed?

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Um, or what insights have you gained, I guess from just looking at that single

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metric, what does it tell us when we, when we do start to measure it?

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Hmm.

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Yeah.

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So, as I said, we are still in the early phases, but just yesterday we had a

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call with our account management team.

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They ask the same question, like, okay, Danielle, we are measuring

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it, but why, how should we use it?

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I think one guy asked this in the team because you know, reporting is,

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is good and, you know, sometimes we can have a big ego on numbers like

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I'm able to measure this pretty cool, but why should we measure this?

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Yeah.

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Um, what decisions can we make based on these numbers?

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That's the ultimate question.

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And we went through these numbers.

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I think customer lifetime value is crucial to know how much you

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can spend on your, on traffic.

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Sorry, customer acquisition.

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Yeah.

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I think the prime example is Starbucks where one coffee is, I don't know,

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four, $5, something like that, but there customer lifetime value

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is more than $10,000 so, Wow, I did not know that that's insane.

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I think that's a prime example and.

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I think that, um, returning customer rate is, you know, close

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to 100%, like 90%, or once you go to Starbucks, you will come back.

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Even if you hate Starbucks, because sometimes you just need a coffee quickly.

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So, um, you know, but, um, I would say if it's an extreme

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example, but AOV is like $4, $5.

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Lifetime value is $10,000 and Starbucks really knows this.

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So they know that they can spend one, two K to acquire one customer.

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That's totally fine because they will get this money back later.

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Mm-hmm so I think that's the ultimate example.

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And, uh, I think most people, they would be happy to have a brand like Starbucks,

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um, smaller businesses, smaller brands

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they don't have this huge difference between the AOV and the lifetime value.

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Mm-hmm but still, uh, let's say your AOV is 20 bucks.

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Your lifetime value is $100, then that's five times more and you become

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more confident to spend more on ads.

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Yeah,

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customer, let me just clarify.

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Actually, if you're listening to the podcast and you're like, what is AOV?

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If you're new to eCommerce, AOV just stands for average order value.

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That's the amount that an average person typically spends

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when they're on your website.

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So, um, sorry to interject there.

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Daniel, just clarifying terminology.

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I think it's important.

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Yeah.

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Um, yeah.

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So that's lifetime value and then average days between orders.

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I think it's really interesting to see different segments,

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especially on an email list.

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For example, I think yesterday we checked the US pet brands, um, and the whole

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list they had something like 200 days.

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Between two orders on the average, the whole email list, which was

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more than two hun 200,000 people.

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Mm-hmm but the VIP list, which was only a few thousand people,

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the average days between two orders, it was like 15, 20 days.

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Yeah.

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Which is 10 times different and that's, you know, huge difference.

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And, uh, if the business really needs money quickly, then they

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should target the VIPs first.

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Yeah.

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They buy really frequently.

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So yeah,

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no, that's very true.

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And actually, I think it informs your marketing efforts.

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Not just that, I mean, I I understand that customer lifetime value helps

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inform how much I can spend on customer acquisition or CAC, the cost

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of customer acquisition, isn't it.

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Or customer acquisition costs.

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Uh, if you're new to e-commerce, you'll find there's a lot of three letter, three

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letter acronym, just all over the place.

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We just like to use them all over the place.

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Um, and CAC is probably my favorite one, given what it means here in the UK.

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Um, but, um, but yeah, you, you know, you've got these sort of these,

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these metrics over here, but this.

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Uh, days between transactions, I think is a really interesting metric from a

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marketing point of view, because actually, if you go, if you're a business and you're

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saying, well, typically it takes 200 days to get someone to buy a second order.

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What can I do to get that to be 190 days?

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What can I do to get that to be 180 days?

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Um, because you're selling to existing customers and you're trying to increase

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the frequency, uh, at which they buy.

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And I remember, I remember sitting down in a meeting.

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Well, I was in a conference led by the copyright genius

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actually, uh, called Jay Abrams.

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This was a long time ago.

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This was maybe 30, 40 year, not 40 years ago.

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I'm not that old.

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Geez.

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Um, but it was 30.

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This was 30 years ago.

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Right.

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And I'm setting in this conference and he said, there's only three ways that

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you can grow your business and it's always stuck with me said, number one,

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you can increase the amount of customers that you have customer acquisition.

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We like to call it now, number two, you can increase the amount each customer

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buys from you, average order value.

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And number three, you can increase the frequency with which they buy from you.

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As in, you know, you can increase the, uh, you can reduce your 200

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days down to the 10, 12 days.

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And I think.

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it's for me, it's one of those untapped marketing potentials.

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Isn't it just to look at that number and segment customers and go, well, these

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guys order between 10 and 20 days, but these guys order between 50 and a hundred

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days, what, what do I need to do to get them to be within the 10, 20 days guys?

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And thinking about that, I think is a really interesting idea.

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And it opens up some really interesting opportunities.

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Is that what you guys were doing yesterday?

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um, yeah, so actually let's introduce one more, uh, acronym, which is, uh, RFM.

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Yeah.

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Because you just, I think you just talk about it, like, uh,

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recency frequency and monetary.

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Yeah.

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These three.

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Yeah.

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And I think that's huge.

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It's really powerful, but I talked to a few industry experts on this and

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I think it's useful about 100, 200,000 subscribers.

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So if you have a big list and smaller brands, I think they don't need this kind.

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I, I, the mindset is good.

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Definitely.

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They should think about it, but they shouldn't measure

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it too, too much, you know?

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Um, it's just enough to know the lifetime value or start calculating

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that maybe average days between orders.

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Yeah.

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But I think that's enough.

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And once they get to you know, higher level, let's say they have

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multiple hundreds of thousands of subscribers, even millions., Then they

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definitely need this RFM segmentation.

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That's you just mentioned, I know tools that can measure it quite well, and

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they can segment the customers based on this, like people who buy not frequently

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once a year, but then they buy, I don't know, $1,000 worth of product.

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Which is a high number for most stores.

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So, or, or people who buy frequently, but low value or maybe the window shopper.

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So you can create a lot of segments.

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But the other side of the equation is don't over complicate things.

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and, uh,

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which we have a tendency to do.

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I,

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I, I have to exactly.

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I know because we tried it with a few clients, this RFM segmentation, and I

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could see it's just too early for them.

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So yeah, we, we tried to still, you know, keep things simple.

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Mm-hmm so.

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That's my 2 cents on this.

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No, it's good.

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I mean, I, I have to be honest with you.

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We use RFM segmentation with our customers.

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Mm-hmm um, on our eCommerce websites.

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And I think it's really insightful, uh, the information it gives you, but we,

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we have a lot of customers and we can, you know, we can extract some meaningful

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data, but I, I do think the principles of grow your customers grow the average

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order value and increase the frequency in which they buy as marketing ideas are,

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are sound, Do you know what I mean?

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And, and, and they, they do make sense and you can track those three things.

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You don't have to go to the expense of some, uh, RFM segmentation software yet,

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but you should be aware of them, uh, I think, and, and, and, and track them.

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So what tools can we use to track things like customer lifetime value,

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average order between average time between orders and stuff like that?

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So we use, we used reveal before.

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and I think we already discussed this earlier, uh, and is really good.

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We are really happy with it.

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And I also know that, uh, they use it with a few big like enterprise

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level companies, like DACA loan in Romania and those companies,

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they have millions of subscribers.

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Mm-hmm so it's, it's a really solid tool to use.

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We use Metrio or Metrilo with one skincare company.

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They are smaller on Shopify, but they are big on Amazon.

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Yeah.

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So I think that email list is a few tens of thousands of people.

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Mm-hmm , but these guys, since they already have a big Amazon business, they,

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they are, uh, they are new on Shopify, but they are not new to eCommerce.

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So they really started the business, the Shopify business

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with a really good mindset.

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And they wanted to measure these metrics, uh, from the first day.

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Yeah.

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So we use these.

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I would say these two, and then we also use Google analytics to get certain data.

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We can get cohorts from analytics, but, um, honestly to it, it took a lot of time

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to get the right data up from analytics and also analytics will change soon.

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Yeah.

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So change it again.

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Yeah.

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Yeah.

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I would say this to and material, if you want to get started with

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RFM.

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No.

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Great, great.

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And we will, of course link to both of those in the show notes.

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If you wanna get hold of them, um, we are gonna, I tell you what I'm gonna do now.

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Don't go anywhere.

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We're gonna be right back in just a few seconds where Daniel, I gonna

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carry on our conversation and get into some of the specifics about what

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we can do to build customer loyalty.

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Uh, don't go anywhere.

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We'll be back in just a few.

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Hey

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there are you a business owner here at Orion digital?

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We know firsthand that running an e-commerce business

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can be really hard work.

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As the online space gets more competitive.

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It is becoming even more challenging to stay ahead of the curve.

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We totally get it.

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So we wanna help you succeed by offering a wide range of services from

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fulfillment marketing, customer service, and even coaching and consulting,

Speaker:

just so that you can do what matters.

Speaker:

Save yourself the time and the money and let us handle the day to day tasks.

Speaker:

This way you can run your business without having to worry about the boring stuff.

Speaker:

So what do you say?

Speaker:

Are we a good fit for each other?

Speaker:

Come check us out@oriondigital.com and let us know what you think.

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We were talking before the little break there that, um, you know, about RFM

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segmentation, about tracking certain, uh, ideals and metrics, which is great.

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And what, so we've, we've got our metrics in place, which we are tracking those.

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What are some of the things that I can do then to implement, um, using, you know,

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The strategies, which you use day in, day out with email, SMS and messenger.

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I think the three you mentioned mm-hmm what are some of the insights

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and strategies we can use then to, um, build, uh, customer loyalty,

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increase our customer attention?

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Yeah.

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Great question.

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So I think it also depends on the, a AOV for sure.

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And also what niche you are in.

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So there are certain industries, but, but it's really hard to

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build on loyalty.

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So let's say expensive jewelry or furniture companies that, uh, the average

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days between two orders, it's really high.

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It's a high number.

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You know, you don't buy a 5k, um, necklace every second week, obviously.

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So, um, first week, you know, we have to take this into account.

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I think where's crucial is, uh, consumable.

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And, uh, I think around 60% of our clients, they also sell consumables.

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So baby products, pet products, food, uh, fashion, skincare,

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beauty brands, hair care.

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Yeah.

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All of these.

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And, uh, I think their loyalty is crucial.

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So first of all.

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I think everyone should think about using less discounts because , I think

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it's just so you know, it's, it's so mainstream and in a negative way.

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So yeah, nowadays consumers, they are smart.

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So not just marketers, but many people they know if they just abandon

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the cart, they will get a discount.

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Yeah.

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Within one day.

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Yeah.

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People are smart.

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And, um, there are much better ways to, you know, to either get

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more subscribers or get, uh, more loyal customers and subscribers.

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So you can try something like a free sample product.

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Mm-hmm, , I'm a really big fan of it.

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And what I can see is that, uh, pop-up subscription rates are almost double,

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sometimes triple if you have a free sample mm-hmm and I know it takes some

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investments, so maybe a new business cannot afford this, but once you

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get some traction and the good cash flow, then you can think about it.

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My, uh, favorite example is, uh, Lumin skincare.

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It's an Australian company.

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I also use the product and if you go to the website, you will, you can get

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a free product sample mm-hmm . And I think you can even pick from.

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Different products.

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Yeah.

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Based on your skin type, I think.

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Yeah.

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So that's really smart.

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People love those.

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Um, yeah.

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So yeah.

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Free, free sample.

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I would say that's the best really?

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Um, yeah, we

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did that.

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We did that with Jersey company.

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The.

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Which was a website.

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I sold one of my e-commerce businesses I sold, but we did that.

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If you, if you came to our website, you could just order free samples.

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You didn't even need to order a product.

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We did charge I think, a minimal fee for shipping and handling, but it was

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really interesting, you know, the people that came and ordered the free samples,

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half of them were a waste of time.

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And I mean, this would all due respect.

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A lot of them were just freebie hunters, uh, which is why we actually started

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to charge for shipping and handling to just reduce the freebie hunters.

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Yeah.

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Um, Then the other thing we started to do was the sort of, um, the

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tester packs where you paid, like, I don't know, a minimal fee, like five

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bucks for, you know, a tester pack.

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But if you ordered from us, um, you got the $5, you know, we gave you a five pound

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gift voucher to spend on the website.

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Um, and we, we tested both those things and the free sample

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thing worked really, really.

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Really well, yeah, very high converting.

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And then as long as your email sequence afterwards was good,

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which we'll get into, you know, um, they, they converted quite well.

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And how did you recognize the, the hunters, the gift hunters?

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You

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just, it's one of those, isn't it?

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You J because somebody's purchased from you a sample pack, a purchase from you

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or ordered from you, a sample pack.

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You just have no idea about that person, what you could tell um, uh, was you

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could, you could track say, uh, let's say you were running paid media, a paid

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media campaign, like a Facebook ad to that free sample to generate new leads.

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Um, you could test which ads brought in the best customers, you

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know, and which, which audiences bought in the best customers.

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And so you could track those kind of things, which was really helpful.

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Um, and we found that actually, if somebody put, um, Somebody came across

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it and they would share their, the link to, um, I don't know, like mum's

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net or some kind of forum like that.

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Um, then depending on the forum that they posted it on would also depend

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on the quality of customer that you would get as a, as a result of it.

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But we just solved the problem by just charging a fee of like, I

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think it was like three pounds, two pounds, 53 pounds, something like

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that for a shipping and packaging.

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And so that solved most of the issues right there.

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That's a good tactic, indeed.

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Yeah.

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So not completely free, but

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almost.

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Yeah, but almost, you know, the product itself was free.

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We just decided to pay shipping and handling, but we didn't charge

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like 10 bucks shipping and handling because that would just be outrageous.

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Do you know what I mean?

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It was like a minimal fee, but enough to stop the, and we tested

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different levels to stop the, you know, the freebie hunters.

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yeah.

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Speaking about loyalty because this, this is just a small part of it.

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So I really recommend the book to everyone, which is

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never lose a customer again.

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Okay.

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I just, I just had the author, Joey Coleman in our, uh, podcast

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and more, more will come with him.

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But I think I should keep that secret now.

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So yeah.

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He's a great guy.

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Yeah.

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He, he is really, I think.

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Probably he's the, one of the best in the world when it comes

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to loyalty, customer loyalty.

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Um, and it's not just about software or whatever, but psychology,

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like how this works and yeah.

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So check out that book.

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I really recommend that.

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And besides you can use tools such as JPO stem Dota.

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My favorite is loyalty lion, which is actually a UK company.

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and those are all great to create VIP tiers for, for your most loyal customers.

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They can, uh, you know, collect their points and they can use them

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in a, in different creative ways.

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You can also connect this with SMS and play view.

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Mm-hmm with email marketing, so you can set up different smart flows to

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communicate with your loyalty members.

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And yeah, so about tracking, you can also track the numbers that actually

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these guys, they are really valuable.

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They are 10 times more valuable than your average customer, and

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you can see why it's so important.

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So these are the best tools that we use.

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And I would say, try to come up with creative ideas, how to

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retain those loyal customers.

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And don't just use discounts, but.

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, you know, I think big brands are actually pretty good at this

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like Nike Adidas.

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They offer you even live meetings.

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Uh, if you hit certain points, I know brands who, who do it.

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I think Jim shark is going into this direction as well.

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So.

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Try to be creative and, uh, come up with great offers and you can

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steal ideas from these big brands.

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So

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what are some of the things that you, I mean, you've

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mentioned the free samples thing.

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Um, what are some of the other ideas that you've seen work really well?

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That are what you'd call.

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Well, they're just not discounted basically.

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They're a bit more

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creative.

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Yeah, yeah, yeah, yeah.

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I will be honest.

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So actually my team know, knows it better.

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Um, yeah, if you want, I can send you a short list, uh, of, of the best

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ideas, but I think everyone should be really conscious about their brand and

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their audience and what they offer.

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Yeah.

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So, yeah, and even can work out pretty well.

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If you can manage that, uh, we mentioned free sample and, uh, Yeah.

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I know someone who holds, uh, Facebook lives mm-hmm and uh, people can

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participate in the Facebook live.

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Yeah.

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Or even ask questions.

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It's a keto brand.

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Yeah.

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So these are just a few ideas.

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Yeah.

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Yeah.

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That's fascinating.

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I'm seeing this live streaming thing more and more, and they're starting

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to call it live selling now, which is, or live commerce, which, it's gonna

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be an interesting thing coming out.

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So, um, what sort of, what sort of things could I use, um, with emails, for example?

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So how do I can, how can I use my emails to build customer loyalty?

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Mm-hmm

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. . Yeah.

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So first of all, I would, uh, recommend everyone that you should have solid

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email flows cause automations, they usually have higher revenue

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per recipient than campaigns.

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Mm-hmm because flows are triggered by certain behaviors.

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So it's not just automated, but the targeting is solid.

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Like, yeah, it it's, it's hard to achieve something similar with

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campaigns within my campaign.

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And, uh, build the right type of flow.

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So everyone needs a new customer flow, have a separate flow for new customers,

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make it long with many emails and just try to introduce your brand to them.

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Um, you can also send them some instructions how to use the product,

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especially if it's a more complex product, maybe furniture mm-hmm

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If it's a t-shirt probably you shouldn't do it.

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And then to put in a T.

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Yeah.

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Maybe how, how to wash the t-shirt.

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Yeah, maybe that's a better one.

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Yeah.

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Yeah.

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so, yeah, you never know.

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Um, what we also do once they get the product, then, uh, we send them

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a survey and we try to upsell more.

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Uh, and then we collect the fresh customer reviews and you can

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send it out as an email campaign.

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Mm-hmm and actually it converts really well in most.

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And then have separate flows for your VIP customers where, you know,

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it's more warm hearted, let's say.

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And, uh, you can even ask their opinion about your products.

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Like what do you think about our products and not just product, but okay.

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What do you think?

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How should we become an even better business brand?

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Uh, how, what direction should we set, uh, with our product development?

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So, uh, VIP flow and then you can set up different flows for, for, you know, in

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connected with your, with your loyalty program, like redeem your points.

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This is how you can use them or refer us to a friend.

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Um, so there are different flows for, for loyalty as well.

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Yeah.

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Yeah.

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That's very good.

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I mean, and they're all.

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I mean, all the stuff you've mentioned, there is all fairly straightforward setup.

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Isn't it?

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In systems like Klayvio or active campaign or, um, you know, whatever platform you

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use, I think MailChimp do them as well.

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Um, but there, do you have an email platform of choice?

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I mean, you've mentioned Klayvio a couple times.

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Is that the one

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that you use?

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Yeah, Klayvio 100%.

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In the past, we worked with some merchant.

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We tried, I think at least five other platforms.

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Mm-hmm we tried drip internally.

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We use HubSpot for B2B and then sand grid, I think.

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Yeah.

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But still Klayvio is our go to choice.

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Yeah.

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So if youre an e-commerce then Klayvio yeah, yeah,

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yeah.

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It's actually, we're using Klayvio at the moment.

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Um, and it's, I've just got my through my first.

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little while of using them.

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We we've tried a whole bunch of other ones and I, and the other one I like

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is Omni send we've had, we have Omni send on the podcast, actually the

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guys from there and they, they do it.

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Great.

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Yeah.

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Cause they integrate also with SMS messaging don't they?

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Omni send.

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Yeah.

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Um, does Klayvio integrate with SMS or is it just email

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only for those that don't know,

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So Klayvio can do SMS as well.

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However, we tend not to use it.

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Mm.

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And we use other tools like SMS bump, pre card post, because

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there are certain limitations.

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So I think it's still only available in, uh, English speaking countries.

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So not in France, Germany, right.

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Or, you know, other European countries.

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Um, that's one limitation also.

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I think campaigns could be better.

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Um, Yeah, I, my go to choice would be recard now, but this landscape

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changes almost every month.

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So before we use SMS bump with most clients, now we prefer recard.

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So yeah, it's, it's always about the features, I would say.

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Yeah, I'm not envy of these guys to be honest because they, they,

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it's a kind of rat race, you know,

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Yeah, it is.

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And they're always trying to like out do each other on features aren't they

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and the latest thing and, um, yeah.

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And what happens.

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And then of course, apple come along and screw everything up

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with some latest iOS change.

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And then it's like, oh, back to drawing board again.

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Thanks guys.

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Yeah.

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Um, , we've seen that.

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Uh, we've seen that a lot.

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So, um, so that's, I mean, there's some top tool tips there and we

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will, of course put the links to those tools in the show notes.

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If you want to know those in terms of, um, I get that, that you

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know, that we need to, in terms of customer loyalty, we, we, we want

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to increase our average order value.

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We want to increase our lifetime value.

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We want to increase the, or decrease the amount of days between transactions

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increase their order frequency.

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Uh, and we want to be creative in doing this.

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We don't just wanna keep giving discount after discount after discount,

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because that's just never a great way to win long term with e-commerce.

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So I've gotta set up my email sequences and my, um, or flows as you

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called them where a certain action is gonna trigger a certain event.

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And I've got, I've got these different, uh, emails, uh, all set up, um,

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all the different flows working.

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And there's, you know, we've talked about flows a lot on the podcast.

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Um, And a flow could be anywhere from probably three

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emails up to maybe about seven.

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I think it depends on you and your brand, I suppose.

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Um, what sort of things, should I be thinking about in terms

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of design of those emails?

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Because I tell you what, um, the flows I get, like we've got

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a, a, a vegan supplement brand.

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Vegetology one of our, our websites.

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I understand the, the flows that I have to send to customers to make that work.

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Right.

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I I've got my head around it, I guess.

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What sort of, how should I lay it out?

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How should I design it?

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I dunno if you've got any thoughts on that?

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Yeah, that's a really important question.

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And, uh, I can see people fighting over this topic , you know?

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Yeah.

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We should definitely.

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Yeah.

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Yeah.

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Especially when it comes to designers and copywriters.

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So yeah.

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Um, I would say it really depends, and I know everyone has this answer, but

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let me give you some insights on this.

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You know, what we can see is that many times plain text emails, without

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any design, they convert amazing

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especially if it's a warmhearted email.

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Yeah.

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From the CEO when I started my career, I used these emails a lot, you know,

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um, I made up some story that I'm traveling to a conference now and I have

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half an hour to give you a discount.

Speaker:

mm-hmm I remember those emails in the early days and they converted really well.

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Yeah, but what we realized after a while.

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So, you know, there are fashion brands, skincare brands, all of these gym brands,

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let's say where design gym shark is a really good example, I think, or Nike.

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So their design is crucial because this is what sells.

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It's not about the copy.

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It's not about how you write the email.

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Of course it's important, but that's a really small part of it.

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Design is the most, I.

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So I think the business owner and the, the marketers in the team should know,

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okay, what really sells these products?

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Are we design focused or more like copywriting focus?

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And probably, I would say most brands, they should be copywriting focused

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because direct response just works.

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You know, if you are a good copywriter, you will sell your products.

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Yeah, but there are those cases when it's a lifestyle brand or there is

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some reason for that, then design becomes much more important than copy.

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So you just, maybe let's, uh, talk about an example.

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So you just mentioned this, uh, vegan brand that you have, and, uh, I'm curious,

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what do you think about this brand?

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Like, is it design focused or more like, you know, good offers.

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Good copy.

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Uh, if I'm honest with you, Daniel, I'm trying to do all of it.

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Uh, I'm trying to, what I've, what I can tell you is we do the emails

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where they're very well designed.

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Um, And it's, it's hard to make, um, a tablet look pretty right.

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Is, is so, you know, you have to do the lifestyle shots and

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the lifestyle photography.

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Um, but one of the things that I do like to do, although I, I, I

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don't actually make up the stories.

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I, as the MD of that company, I do like to email just a plain text email.

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Okay.

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And, um, or at least a minimal email, you know, like a, a with

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very minimal graphics, like.

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Here's an update or here's something, you know, and, um, whenever

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I've sent those out, certainly with our existing customers, you

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always always get an overwhelming response in terms of, because it

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it feels like a normal email.

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Yeah.

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Normal.

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As in, it's not a promotional email, there's no real heavy graphics in there.

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People respond, people just hit the reply button and they, they

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answer you, whatever question you've asked, Do you know what I mean?

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And they, yeah.

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And it starts to engage them in a conversation.

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Um, and I actually really like that to the point where, um, I've said to the

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team, I'm like, how do we do that more?

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Really?

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Yeah.

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But if you, but if you did only.

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It's a good question.

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Isn't it?

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It is a really good question.

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Could we do just something like that?

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Uh, I dunno if I'm that brave, if I'm honest with you.

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yeah, yeah, yeah.

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Or, or let's let, let me ask you differently.

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So, uh, why do you do the nice design emails?

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I

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think it's I, again, I like to mix it up.

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And so, um, if we have, for example, a new product, uh, which comes out on,

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uh, so we're just about to launch, um, a sleep tablet, for example, mm-hmm,

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, it's something that helps with sleep.

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Yeah.

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And so, um, You want something that is well, you know, good copyright,

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but I think also your, your showing as well as telling aren't you, and

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I think a picture paints a thousand words in situations like that.

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And so for me, some kind of lifestyle photography, even just somebody sleeping

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in a bed soundly, it implies so much that just from that single picture, you

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know, so, um, we would, we would use

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uh, images when, when we feel like it helps enhance the

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story.

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Makes sense.

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Yeah.

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Yeah, yeah.

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Actually then, uh, I think what you're talking about this, you

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know, picturing how the product works, what, what's the benefit.

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That's also quite direct response because if you think about even the old direct

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response ads, they had images or yeah.

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Or drawings, they were really similar, but they had a purpose, which.

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Showing how the product is used.

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Why, why it's good to use it.

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It's not because it's nice or whatever.

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So, yeah, I think, uh, you know, if you can see this, then maybe you

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could try that, okay, this month we will send more plain text emails.

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Next month we will try more design emails and then just

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change the ratio, um, of those.

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And.

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Yeah.

Speaker:

After five minutes for me.

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Uh it's it sounds like you should try more, um, copy based and you can use

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images, but it's not a bad, nice design.

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It's not like Gym shark.

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So yeah, that's what I would try for.

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Yeah,

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no, I, I totally agree.

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And it's something on our, on our roadmap to do, because I think,

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um, the simplicity of those emails just encourages conversation and,

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and that's actually quite nice.

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Mm-hmm and so.

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um, yeah, that's all, it's funny.

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Isn't it?

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How these things come and go, you know, right at the beginning, I remember all

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you could do was plain text emails.

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Yeah.

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And then we started doing HTML emails and they became all graphic

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space and everyone loved them.

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And then we could put video and emails and, and now it's coming back round.

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So it's like, actually it's understanding the right tool for the right job.

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At the right time.

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Right?

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So, uh, listen, I, I think we could keep talking about this, but one

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thing that I did say we would touch on, um, that I, I, I wanted touch on

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because I'm aware of time is just.

Speaker:

the fact that you built an agency quite rapidly to, um, you know, and had to hire

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a whole bunch of people quite quickly.

Speaker:

Um, and you know, you started yourself as a freelancer on Upwork.

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Uh you've I'm guessing you have gone and recruited people from

Speaker:

places like Upwork in your agency.

Speaker:

Um, so what is somebody's listening to the show?

Speaker:

Their business has grown in scale.

Speaker:

And what are some of the key lessons that you've learned?

Speaker:

sure.

Speaker:

So first of all, hiring is, is crucial.

Speaker:

Hiring is a kind of inverted sales or inverse sales.

Speaker:

Many people say not many, but.

Speaker:

Think Alex homos said this, actually.

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And I really like this quote because you are hiring clients as an agency,

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but you are so, or sorry you are.

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Yeah, you are acquiring clients basically to increase your business, but also

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on the other side, you need people who deliver the work and you also.

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Acquire them.

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So it's, it's, you know, and it's also about people.

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So sales and hiring is pretty close to each other.

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Um, always look for talent people.

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They always look for clients, but they don't always look for talent.

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And I think that's a huge mistake.

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Um, and what I just realized recently, and yeah, I think this is huge.

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So people come first, like it's not about strategy, not about marketing,

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not about copywriting, but people because good people, they can create

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good strategy marketing copywriting.

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So, you know, it's really about people in your team and get being connected

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with good people, talented people.

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Um, I, I think those are my recent.

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Learnings, but of course along the way, I learned a lot of things.

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Um, I, I learned, um, I, I read a lot of books about management and leadership.

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I think I read more than 40 books on this topic.

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Wow.

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So I, I really like this topic, actually.

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I'm thinking about, uh, making a course or some kind of

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mentorship program or whatever.

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I really enjoy teaching this.

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Yeah.

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Uh, topic.

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Also, I think it's undervalued, you know, like you can find a lot of marketing

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courses everywhere, but you cannot find any about creative management

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or good leadership in eCommerce.

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So, yeah.

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Um, I would say, yeah, these, these are the few takeaways.

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Um, I can get more specific if you want.

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No,

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I think it's interesting.

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Isn't it?

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Because I, um, I know you've got your podcast, the ecom podcast,

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which is a great podcast and everyone should go and subscribe to it.

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And again, we'll link to that and show.

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And in fact, uh, it's, I've been on your podcast.

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It's not great because I've been on it.

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I irrespective , it's a, it's a great show.

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One of the things that I found Daniel, and I dunno if again you found the same

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thing, when you go onto other people's shows, right, and they interview on

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their podcast, they want to know things like, we want to know, like, how do

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I do emails that increase customer loyalty, but as I've done today,

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I'm like, well, hang on a minute.

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There's also this other side.

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There's also this other story.

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Um, in terms of your you've had to rapidly scale and grow your business.

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Well, that's not really eCommerce, but that's stuff we definitely want to know

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about because yeah, we're facing similar sort of stuff in our own business.

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And so, um, I find it fascinating, know this whole idea of leadership and

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challenges and how you deal with them and like you, the whole thing intrigues me.

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And I'm, I'm not doing a course on it.

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We're actually starting a second podcast.

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But by the time this episode comes up, that may well be started.

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I don't know.

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Um, but where do you go to find good people?

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Because that, I think that's one of the key questions people have is like, how

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do I go and hire group, it's great to go and get talent, but where do I find?

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Sure.

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So as you mentioned, I started hiring on upward because that's how

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I got hired as well at the really.

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and then we had the chance to work with, uh, I will mention her name.

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So, so Angela Muong she's from South Africa, but she lives in California or?

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Yeah, I think she lives there now.

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Mm-hmm, , she's a big traveler and, uh, she's amazing with, uh, with hiring.

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So I think her professor was, uh, cheeks and MI high and he

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wrote the book flow, which is a really well known psychological.

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So she, she is, you know, she's really good with hiring and with, with people.

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And she helped us at the, at the beginning.

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And then we started using LinkedIn ads to find good talent.

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Just recently last year we started looking into more niche platforms

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like designers, B hands and dribble mm-hmm and then developers.

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I think that is a Shopify platform just for Shopify devs.

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And, uh, yeah, we just, you know, indeed I think in the us it's huge.

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So we just started looking into more platforms and uh,

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now we use all of them and our

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HR guy, uh, our head of culture.

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That's how we call him.

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So he takes care of the whole process.

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But what I would recommend to everyone is that try to have a person in your

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team who is your head of culture, your HR person, and, uh, someone

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who really takes care of the teams, mental health a bit as well, not just

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hiring and, uh, yeah, I think that's, that's really, really important area.

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That's actually really, really important, uh, who looks after the

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team's mental health, because it's, it is becoming a bigger and bigger issue.

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Um, and definitely one, we need to get involved with one of the things that I

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like about what you've said, and it's kind of like a bit of an under current you've,

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you've mentioned it a couple of times is whenever you want to know

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something, you tend to go and find an expert in that field and either

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get them onto your podcast or work with them in some kind of mentorship.

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um, is that kind of one of your life philosophers?

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Like, let me go and learn from other people.

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Yeah, I think that's really important because it can

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speeds up the learning process.

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So if you have to learn everything by yourself, it it'll take a lot of time.

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And, uh, it's interesting because I just talk to a guy who, who is more

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successful than me in business, let's say, and he learns everything by himself.

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And I'm really curious where we'll, we will be in 15.

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Yeah, so it's possible, but it's really hard and you must be smart.

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Learn quickly, all of that.

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So I'm a bigger fan of, uh, hiring people or if you cannot hire at least

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to hire a consult and then that person will tell you the 80 20 of that area.

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Yeah.

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Because if you have to dig out the information yourself and learn it by

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yourself, that takes the most time.

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So.

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Yeah,

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no brilliant.

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I like it.

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I like the, uh, you, you come across Daniel as a very humble guy, actually.

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And I quite like that.

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And, and the willingness to learn from other people is a, is a good sign of that.

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So, um, listen, thank you for being on the show.

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Thank you for sharing your wisdom and insight.

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If people wanna reach out to you.

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People want to connect with you?

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How do they do that?

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What's the best way.

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Yeah.

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So check out our website, the budaimedia.com.

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And I ask you to put the link into the description because Budai is my name and

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I know it's difficult for some people.

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We also have our Facebook group it's, uh, top written top

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eCommerce retention, marketing.

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You can find it.

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And I think these, these two are the main channels,

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the two main ways.

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So the, the website, Budai the Budai Media group, which is B U D A I, if

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you wanna know how to spell it and the, the Facebook group and like dang

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requested, we will, of course put all of those links in the chat, man.

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Our show notes, just gonna be full of links this week.

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It's just one.

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Uh, of links, but you can get that, uh, full free at the

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website, uh, eCommercepodcast.net.

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Um, Daniel just quickly tell folks about your podcast.

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Sure.

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So the e-com show and I launched it almost two years ago.

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I think we will have the second, the third year we have started next month

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and, and, uh, we just had our 100 episode with Ezra Firestone and, uh, Basically,

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I invite eCommerce business owners, agencies, marketers in this field.

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And I ask them to talk about their, uh, you know, mindset, how they

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started their journey in eCommerce.

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And we also share valuable tactics strategies, what to implement

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tips and hacks, all of that.

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And, uh, make sure you check it out if you want to learn more.

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Yeah the income show do check it out is a great show.

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Uh, and very helpful.

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I.

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eCommerce entrepreneurs.

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And like, we talked about the best way to learn something is to go and learn

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from somebody who's done it before.

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Uh, just, you know, putting that out there.

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And this is why I love this show because I get to talk to people who have expertise

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and insight in these areas like Daniel.

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And, uh, I've got again, pages and pages of notes, uh, to talk to the

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team about, which is wonderful.

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So.

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Daniel.

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Thank you so much, uh, for being with us really appreciate it, but, and

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always great to reconnect with you.

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Uh, yeah, appreciate it.

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Uh, have a, have a fantastic day in, in Hungary.

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Thank you.

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I wish the same two of you and to every listeners.

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So there you have it.

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What a phenomenal conversation.

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Huge.

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Thanks again to Daniel for joining me today.

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Uh, and also a big shout out to today's sponsor-.

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the eCommerce cohort do head over to eCommercecohort.com for more information

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about this new type of community, which you can join at amazing rates.

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Now be sure to subscribe where you get your podcast.

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Because as always, we've got some great episodes, uh, some great

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conversations lined up, uh, and I don't want you to miss any of them.

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And.

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In case no one has told you yet today.

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You, my friend are awesome.

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Yes, you are.

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Now the eCommerce podcast is produced by Aurion Media you can

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find our entire archive of episodes on your favorite podcast app.

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The team.

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The fabulous team that makes this show possible is Sadaf Beynon Josh Catchpole,

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Estella Robin, and Tim Johnson.

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A theme song is written by me and my son, Josh Edmundson.

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Uh, and if you would like to read the transcript, all show notes, head over to

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the website, ecommercepodcast.net where you can also sign up for our newsletter.

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So that's it from me.

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Thank you so much for joining us.

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Have a fantastic week.

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See you next time.