what does direct mean on shopify

hey there and welcome to step four in,this video we're going to talk about the,direct to consumer marketing system,so here's what we're going to cover,first the most important ratio in direct,to consumer e-commerce second the,fastest way to increase the lifetime,value of your customers and third how to,increase your sales five thousand,dollars or more in the next 25 days for,free so the most important ratio in,direct to consumer e-commerce success,let's give an example couple different,businesses so business a let's say they,sell a product for 25,average customer maybe buys you know one,and maybe they come back and they buy,this product or something else twice in,their entire lifetime say over the next,few years so the value per customer,assuming it produces 25 dollars in,profit they just buy one up front and,over some period of time on average they,end up buying another one so total,profit double the initial,product profits about 50,business b,say same exact product profit 25,but this customer because you engineer,the sales funnel in a certain way so,that they buy on average three of them,up front,and the average number of repeat sales,is four you've built in better systems,email marketing sms postcard marketing,everything you can do to get in touch,with people on average they end up,buying four times,this means that the value per customer,is three hundred dollars,that means you can spend six times more,to acquire a customer in the second,business versus the first one who do you,think is going to win in this scenario,my goal is that you build a business,more like the second one so that you can,scale up faster bigger,and better than any of your competitors,so the most important ratio in direct to,consumer e-commerce is lifetime value,total amount of money the customers give,you over time some people talk about,this in terms of revenue it's kind of,easier to think about i think it's,better to consider profit so if you know,your average gross margin how much do,you make when you sell a product after,product cost packaging costs shipping,costs,not including you know your operational,expenses not including your salaries,employees all that just the core product,costs,what is that relative to the amount of,revenue so maybe it's for example 50,um could be pretty common and so if you,know you have a lifetime value customers,end up buying say 200 worth of stuff,over the first couple years,then your,lifetime value in terms of gross profit,is half that or 50 of that so about 100,bucks,divided by lifetime value divided by,customer acquisition cost what does it,cost for you to get a new customer most,of us use paid ads to get customers in,this kind of a business so what does,that cost you in whether it's facebook,ads tick tock ads i mean you could even,sort of quantify this with more organic,sort of um,you know,uh search engine optimization that sort,of thing you can also do with,influencers with affiliates overall what,does it cost for you to get a customer,the more money customers give you and,the less it costs to get a customer the,better this ratio and the better the,performance of your business,so lifetime value is the total amount of,stuff a customer buys from you overall,time customer acquisition cost is what,you have to spend to get a new customer,so,a general rule of thumb that kind of,came from the software world is three to,one if your lifetime value is three,times your customer acquisition cost,that allows you to fund the growth of,your business allows you to acquire a,lot of customers grow very quickly and,still be profitable for an example say,your customer acquisition cost is fifty,dollars that means you'd want your,lifetime value to be a hundred and fifty,dollars alternatively if you realize,your lifetime value is 150 dollars then,you're like okay then i'd be willing to,spend you know say 50 to acquire a new,customer because you could technically,spend that entire 150,the problem is is that some of that,lifetime value is probably not going to,come in for six months a year or two,years that means all the way up until,then you've lost money acquiring that,customer but even once the full lifetime,value is realized you haven't made any,profit all you've done is recoup the,cost to get that customer and so if it's,truly the lifetime value then,that has to also include a margin there,for your own profit and so i think this,is kind of the reasoning behind this,three to one rule of thumb so you have a,target to shoot for,so now what's the fastest way to,increase lifetime value sure you can,provide better customer service you can,create way better products also very,important things to do these things are,going to take a little while the fastest,way to increase lifetime value is to get,more money from customers today on the,initial purchase,and so you know something like 75,percent of your customers are probably,never going to buy from you again,and even the ones who do it may take,them a while to reorder so if you want,to increase your sales now if you want,to make your advertising,perform better today the best and,fastest way to do it to increase,lifetime value and to grow your sales is,to get customers to buy more stuff,literally today you can implement some,of this stuff and within hours or at,least 24 hours you could be producing,more sales with no increase in traffic,and so here's an example of a business,that's done very well biotrust it's,created,by some people i i know and kind of a,friend of a friend but i'm also know,them,fairly well i guess and so,they've built this business did,extremely well tons and tons and,millions and millions of dollars in,sales if you go to one of their product,pages there's a reason why they have on,here one bag three back six pack most,e-commerce businesses you just buy one,unit you can click up the little,quantity indicator and get more they're,putting it in front of you and almost,making it look like the default is to,get three bags because this increases,average order value allows them to spend,more money on ads to get new customers,because customers order more up front,takes less time to realize the full,lifetime value plus,it likely increases the lifetime value,alone because some of these customers,are never going to come back to begin,with so this is one way to do it,make sure you have the option and,default to the option to people to buy,more than one up front almost no matter,what product it is say you're selling a,water bottle there's no reason why,people can't buy three water bottles,maybe you want one for your home office,for your gym maybe you want one for this,kind of liquid that kind of liquid maybe,you want it for a family member so,pretty much no matter what product,you're selling within reason there's no,reason why people can't buy multiple of,them so,have it available and give people a,discount to buy a multiple quantity of,them and if possible make that the,default on our store we default to,buying three units of our product,somebody has to go out of their way to,only buy one,so that's an option for you to consider,because there's a lot of in research,that has been done but as long as you're,doing this ethically you know people,often will just accept the default,option without changing it and um so,it's a great way to sort of increase,sales,uh also adding one-click upsells so this,is some screenshots i took on my mobile,phone when i actually bought a product,from them and so after you buy after you,finish checking out you'll notice that,they basically upsell you on this,product they say the retail value is 69,the upsell price is only 29,so with one click you can add this extra,product to your order and it's another,way for them to increase value and you,as a consumer also get a discount so,it's not a bad deal it's not like you're,tricking consumers or anything be,ethical tell them what they're getting,sell the value of their product don't,trick them into clicking anything and,just give them a discount so,you get the value because you get more,sales now from a customer that may or,may not ever come back and buy again and,then also,a customer gets a deal because they get,a discount on the product and then,overall your shipping costs are more,efficient because if somebody's already,ordered like three of a unit and you let,them order one more your shipping costs,are only going to increase incrementally,versus them coming back and placing a,whole new order whole new shipment so it,kind of works out good for everybody,the best way to do this today to add,these sort of one-click upsells post,purchase and you can even do this stuff,pre-purchase,is uh with the apps zipify so zipify one,click upsell if you google it if you,search in the shopify app store you'll,find it very simply allows you to do a,lot of these things it's another one's,created by my friend ezra firestone uh,so this is another great option for you,to use zipify one click upsell this,allows you to do the post purchase,upsells meaning after somebody's in your,credit card and everything they click a,button they can add more to the order it,allows you to also do pre-purchase,upsells which a lot of a lot of the time,is set up you know say you're on a,product page you click to add something,to the cart before you actually go into,the checkout enter your credit card,personal information,you could have the option to present,people with hey buy this complimentary,product add another unit to your order,upgrade your order all those options are,great and it's all possible within this,tool,so here's our general flow that i've,proven out across multiple businesses to,increase average order value which is a,big component of lifetime value because,if you think about it if your lifetime,value is the total amount of stuff,people order over time but a lot of,people only place one order then that,one order,is the lifetime value of that individual,customer which if that's the majority of,your customers that don't come back and,buy from you which is most ecommerce,businesses,then that's gonna have a dramatic impact,on the total lifetime value your average,lifetime value of all your customers,so first on your landing page and even,product pages make sure to give people,the option to buy multiple units at a,time one unit three unit and six unit is,a typical structure,second,add an immediate order bump before they,even complete their checkout so given,the option to double your order is one,that i like and we use a lot and so if,they bought three units let them buy,three more for a total of six if they,bought six units let them buy six more,for a total of 12 which may sound crazy,but people do this all the time you know,for example you go buy toilet paper it's,not uncommon to buy 18 rolls 36 rolls um,not all products are like toilet paper,but there are products that people will,use a lot of and there's no reason they,can't buy a lot of them 12 of them for,example,one click upsell so this is post,purchase,so after they've completed checkout,ask them to buy one more of the same,product at a discount for example,if you sold them the water bottle for,say 20 bucks maybe your one click upsell,is hey buy another one of the exact same,water bottles and we'll give it to you,for fifteen dollars is a good upsell,structure buy one more of the same,product at a discount then if people do,not accept that first upsell maybe,they're just kind of like i don't want,to buy anything else so you got to think,of something else different so the down,sell is what happens if they don't,accept the first upsell so they've,already completed their first order,pretty much but then you're like hey buy,one more of these at discount they're,like no i don't want that so then i,would recommend one last offer present,them with a different product that they,haven't bought yet at a discount so if,you were selling water bottle maybe it's,cooler or maybe it's something else,whatever else you sell maybe it's a,coffee mug so let them buy that one at a,discount typically something better than,what they see in the store so it's sort,of an impulse purchase and it's like hey,this is the best deal you're ever gonna,get sort of take it or leave it a lot of,people will take it,and then if in step three on the one,click upsell,if they say no then they're going to get,the down sell and they're done if they,say yes so they've already added one,more to discount so then the one click,upsell number two is the second offer,that they're presented in that case,and so i would,a lot of times i just copy the offer,from the downsell and make it the upsell,too so it's basically either no matter,what whether they accept or don't accept,the first upsell they're getting a,different offer for a different product,something else they could possibly buy,and then once you get this general flow,in place it's very easy to constantly,just test different upsell and down sell,offers if you're using zipify or,something similar they make it very easy,to be like okay i want half the traffic,to go to this product i want half the,traffic to go to this product let's see,which one performs the best but getting,this basic structure in place will allow,your,direct to consumer business to have a,higher average order value and therefore,lifetime value than almost any of your,competitors which allows you to spend,more ads to get customers and win in the,marketplace,another way to increase lifetime value,is to add a subscription offer i want to,throw this in there because right now,subscription is one business of mine is,about half of sales we do over a million,dollars a month in subscription sales,alone which means we wake up every day,to 40 to 50 000 in sales before we've,done anything which is an amazing,position to be in and so if you can do,it and i pretty much believe almost,anybody any anybody can do this with any,kind of e-commerce business one way or,another is to add a subscription offer,for us and i think in a lot of,businesses i recommend getting the,one-time sale first so just sell them,anything and then after they become a,customer try to get them on a,subscription maintenance plan you know,sort of replacing certain units or if,your product is consumable buying more,of those if you can add a consumable,product uh buying more of those for,example in the water bottle company,maybe a subscription offer could be sort,of electrolyte tablets or something,they're putting in the water bottle so,that'd be something they could order on,a regular basis and you can sort of,present that to them after the initial,sale,but if you can add a subscription,great way to increase lifetime value as,well so now as we kind of wrap up this,video and uh you know next we're going,to have the final video in the series i,want to talk to the people that own an,e-commerce business,that already exists you own the brand,you own an e-commerce business you own,the brand and you want to scale,massively on shopify so maybe you,produce most of your sales on amazon or,maybe you're haven't quite figured,everything out i think there's a lot of,room left to grow based on what you see,with competitors doing on shopify so if,you're in that position definitely,listen up now if you're not i still,recommend paying attention because at,some point hopefully you're in that,position and this will still be for you,so these are the real stats from an,e-commerce business that i own um,and so before i joined,this business was only doing a couple,hundred grand a year in sales,once i decided to partner with this,company purely performance based it was,built by a friend of mine but i decided,hey i'll come in and if we can't grow,sales by minimum 3x in six months,then you don't owe me anything,but if we do then i'll get a small piece,of the business if we can grow sales by,5x in the next 12 months then i'll get a,larger piece of the business as the kind,of deal that i made and so when we,started out this business was doing,seventeen thousand dollars a month,within um six months or so it was doing,hundreds of thousands of dollars a month,and as you can kind of see here so,if we kind of fast forward so january,2019 about 17 grand a month a year later,was doing about 600 grand a month and,then a year after that was doing over,one and a half million a month and fast,forward another five six months you know,doing over two and a half million,dollars a month about and so this is the,kind of growth that's possible when you,implement everything that we're talking,about in this free course,so do you want to rapidly speed up your,direct to consumer growth by working,directly with me because you can go out,there and implement all the stuff on,your own you can figure it out how to do,direct marketing email marketing uh sms,paid ads,and everything else that we've kind of,talked about here or,i can just do all this stuff for you and,that's what i want to talk about right,now so what we will execute in your,business if you decide to take me up on,this,we'll implement the order bumps based on,your products upsells and cross sales,email reactivation campaign to get,customers that are maybe kind of stale,or haven't bought in a while to start,buying again plan and launch new ads to,grow your customer acquisition implement,postcard mailing campaign,implement sms marketing so you have,every way possible to follow up with,leads and customers implement lead,capture and a good lead nurturing system,and then also implement email,autoresponders for,leads and for customers so all of this,right here is just what we would do in,the first 30 days beyond this we'll,implement every other single tool that,i've used to grow a business from,basically nothing to about 27 million a,year,we'll implement that in your business,and a lot of stuff that i've used to,sell over 200 million dollars online so,far you're basically getting every,single tool that i know applied to your,business specifically to grow your,direct to consumer e-commerce sales on,shopify,now this all starts with what i call the,5k and 25 days blueprint my goal is that,you immediately start growing sales,whether no matter what sales you're,currently producing on shopify,i will help you immediately start,producing thousands of dollars in sales,in the first 25 days and then we're,going to keep scaling from there so now,while working together my goal is to get,you at least six figures into new,direct-to-consumer e-commerce sales so,if you're already selling,hundreds of thousands or millions of,dollars a year my goal is to as quickly,as possible,increase that baseline get you far more,sales well into the six figures as,quickly as possible in brand new sales,you are getting now by implementing,everything that we've talked about,now i do require an upfront investment,to make sure you're committed because i,don't want to waste my time don't want,to waste your time and 25 of new sales,everything i do performance based if i,don't perform you don't pay anything and,so uh it's all based on new sales,whatever you're doing now that's your,business i had nothing to do with it my,goal is to help you grow way faster than,where you're at today and this is my,general structure so my guarantee is,that if your sales don't grow,significantly you get all of your money,back nobody else is willing to do this,because nobody else can produce these,kind of results and i honestly don't,want to work with somebody that i'm not,producing good results for so this is my,guarantee,now i call this the direct to consumer,or dtc accelerator program now as you,can imagine i can only work with so many,people so the spots are highly limited i,can only take on a maximum of four new,people per month that's it i don't have,time to start more than about one person,a week i still running my own business i,have a software business i have a,training business i have e-commerce,business,but i love helping people with this kind,of opportunity and this is my sweet spot,figuring out how to accelerate growth as,quickly as possible using this model so,that's what i want to apply to your,business if we think we're a good fit,for each other so if you're interested,apply now at dtc,empire e-m-p-i-r-e as you can see on the,screen,dtcempire.com or there's also a button,inside your membership a blue button you,can see in there you can also click that,that'll take you to the same place both,of them will take you to an application,form gotta fill out some information see,if you qualify if you do qualify then,you'll see a link to book a call and,we'll see if you're a good fit and on,that call it's 100 free no obligation,we'll sort of develop a strategy for you,see where you're at today what your,goals are what it's going to take for,you to get to those goals and then we'll,finally see if you're a good fit and if,we have any spots open so if you own an,e-commerce business whether you sell on,amazon or sell on shopify and you want,to dramatically scale it as quickly as,possible i highly encourage you right,now to go over there and apply at,dtcempire.com,and if you're a good fit then we'll jump,on a call and we'll see one last final,check and if there's a spot available we,might just get to work together so would,love to do that so if you own a,successful ecommerce business go ahead,and apply now now up next in the final,lesson we're going to talk about the,simple path to a 100 000,per month direct to consumer business,we're going to kind of wrap everything,together recap the steps that we've,covered so far so you walk away with a,game plan to implement and achieve this,in your own business i'll see you in the,final video

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