I want to ask you how
much does discounting play into your overall
eCommerce strategy? It’s funny, with ShineOn a little bit– A lot of these ecommerce stores, their status quo is to have
discounts listed as a tool. Is that something—
do you use it a lot? Doesn’t it become
less effective the more it’s used? We have a lot of brands
that actually won’t give. They truly don’t really give discounts. In fact, they just don’t give
free shipping or a free gift or a free hat
with a purchase of something. But, there are certain brands
that the discounting works very well for. If you have something that you can give
that has a very high perceived value, it is a like the DVD set
and a shirt which is valuable, but they do sell for 100, they sell that stuff for
$125 dollars on the store, it’s better to give them that gift
than it is to just give them 20% off. So, sometimes, they’re only saving
10 bucks or five bucks. But to answer your question,
we do run discounts heavy. Some of our brands run
very, very, very heavy discounts. I’d say this year seems like
the trend was to go BOGO, buy one get one,
rather than giving big discounts. That’s essentially equates
to a 50% discount. The thing that we’re really– and all marketers, should really think
about that in the direct response world is you want to pay attention
to your average order value. If you’re giving discounts
but you’re getting a cost— if your normal cost for purchase is $10 and you’re getting a $5 cost
per purchase during the holidays, but you’re giving such heavy discounts
that your average order value plummets, your return on ad spend,
your row ads is going to lower. It might not be any better than it normally was without
the holidays ads. What was the point of giving the discount? You spent a lot of money
and you returned the same amount. You returned the same amount,
basically, that you normally wouldn’t. So, we do use discounts
but we’re really careful to not offer really big discounts
on the stuff that our best sellers or that keep our average
order value up. I’ll give you an example. We work with a rodeo lifestyle brand
called Lane Frost. They have products that are
their best-selling products, that are often ordered. If we were to offer
a big discount on that, it would it would take our average
order value down quite significantly. What we’re doing there is we offer
30% off on one tier of product, 20% off on another tier product,
10% off on another tier product. That’s essentially
based on margin and also based on
how much those products cost, so that we’re managing
our average order value a little bit more strategically
than you wanted. I think that just one final note on that
is if you are going to run discounts, you should always make sure write down. “Okay, this is my ad spend. If I have a
$10,000 ad spend, my normal customer acquisition
cost is 10 bucks. My average order value is this. I’m asking maybe my average order value
will be this after I give discount. What is my return
on ad spend going to be?” If you’re not pre-penciling out,
making sure your numbers, they’ll work out before you’re launching
your ads with those discounts, you’re doing it wrong. You got to make this number adds up
before you can launch it. That goes with everything
you’re saying too, how you plan campaign’s
months in advance with the right build ups
and the right incentives. I think a lot of the scrappy
mindset it should really be would be keep fly into
it and see how it goes. It go for there but it’s
interesting that you’ve learned to be a lot more procedural
about how you do all this. Absolutely. I was listening
to Nick Shackleford’s post about his results from Black Friday
this year versus last year. They were similar. I’m sure they were great. He said they were similar but this year
there was way less stress, way less, because they had these procedures in place
a lot when they do. They knew what to expect. So, I’m sure every Black
Friday that passes you just build your expertise
and get better and better, make it easier on yourself and the client. Yes, I can tell you that last year,
we worked on Thanksgiving, Black Friday, that Saturday, that Sunday. Even leading up to that
there was a lot of hair pulling; and this year it was,
“Hey, let’s talk on Thanksgiving morning. Let’s talk on Friday. Let’s make sure that everything
is running properly. We had to troubleshoot
a couple of minor issues. Rather than that, everyone got
to enjoy times with their family. So, we’re really stoked
about that this year. We did, honestly,
three months in advance. We’re thinking about Black Friday Cyber Monday,
droughting discounts, removing certain products in the store, and encouraging clients to release
new products for this weekend. There is just a lot
of strategic planning that went into this year’s
Black Friday, Cyber Monday, powwowing with clients
many, many, many times before we launch. Very cool.
Nice. So, let’s just talk a little bit
about Las Vegas. We’ve got–
you coming to speak along with 13 other amazing speakers
for Facebook and eCommerce live. We have you speaking on day one,
the Agency Focused Facebook Ads Day. I want to just talk…