Dec 9, 2020
Summary:
Today’s episode focuses on the new landscape of business in Q4 of 2020. This week’s episode should be extra good because we did it twice (only pressed record the second time… womp, womp). We dig into this year’s sales holiday as customers and as agency owners, talking about the mindset of clients when creating campaigns as what we can take away as Agency leaders. How can you use the same consumer psychology to grow your business?
Top 3 Curtain Pulls in this episode:
For more tips, discussion, and behind the scenes:
About The Guys:
Bob Hutchins: Founder of BuzzPlant, a digital agency that he ran from from 2000 -2017. He is also the author of 3 books. More on Bob:
Brad Ayres: Founder of Anthem Republic, an award-winning ad agency. Brad’s knowledge has led some of the biggest brands in the world. Originally from Detroit, Brad is an OG in the ad agency world and has the wisdom and scars to prove it. Currently that knowledge is being applied to his boutique agency. More on Brad:
Ken Ott: Co-Founder and Chief Growth Rebel of Metacake, an Ecommerce Growth Team for some of the world’s most influential brands with a mission to Grow Brands That Matter. Ken is also an author, speaker, and was nominated for an Emmy for his acting on the Metacake Youtube Channel (not really). More on Ken:
Show Notes:
[2:08] Bob starts out this episode with Black Friday results- in-store shopping dropped by 52% this year, and he asks the guys about their thoughts on results from their ecommerce clients.
[3:27] Brad says that most of their clients are in healthcare technology, so there wasn’t a huge amount of buzz surrounding a lot of their preparation. He asks Bob and Ken about their clients and prep time for Black Friday.
[4:53] Ken says that because their clients are all ecommerce, the Wednesday before Thanksgiving is always the busiest day of the year. He says that most of his clients think about Black Friday as a season rather than one event.
[8:04] Brad talks about the concept of doorbusters in retail and says that it’s not such a big deal online- really there is no point in it.
[9:36] Ken says that doorbusters aren’t a thing in ecommerce, as ecommerce comes from a very different model. Acquiring new customers and creating a relationship over time means that you’re taking a loss upfront and making that value back over time. So the customer lifetime value is the true focus.
[11:02] Brad asks Ken if brands use Cyber Monday and Black Friday as a way to acquire new customers, even if to just keep their eye on them.
[11:35] Ken talks about getting customers to buy your brand and not just your products.
[12:03] Bob talks about a friend who has an ecommerce startup that is a very specific niche: kayak fisherman. He collected 5,000 entries for a giveaway and then used that list to send out ads for Black Friday and Cyber Monday.
[14:10] Ken talks about the real opportunity- new customer acquisition. If you do this correctly, you can level up your Q4 exponentially.
[15:17] Brad asks if these buying holidays are ever going to go away.
[15:45] Bob says that he often thinks about this and hopes that one day it won’t be a thing. But in reality humans are humans and it’s in our nature to want to make money.
[16:07] Ken talks about how the shopping holidays have extended and the philosophies that have changed and shifted as newer models for ecommerce businesses have grown.
[17:40] Bob shares a story about modern competition for sales around this time.
[19:05] Brad shares that the Apple Store and Google Play saw more downloads of apps that ever in history- that is reflective of both the times we’re in and the shift of technology.
[20:00] Ken talks about coupon codes and how the bots have collected and shared coupons that you may not necessarily want them to have.
[21:50] Bob asks how agency owners can use shopping holidays to monetize their own agencies or businesses. When you sell services, how does that work?
[22:30] Ken talks about the products and services that Metacake offers.
[24:32] Ken talks about discounting services in terms of his business, that ultimately it would be an approach to either acquire bad customers or go out of business fast. The question is really how do you create products and services that are replicable, have less cost and acquire the right kind of people.
[26:46] Ken talks about the products that Metacake sells, and says that the higher cost items have served to create new clients.
[28:05] Ken: “The product that agencies have is experience and knowledge.”
[28:45] Bob talks about WHY the guys have the podcast and how that passion drives their work as agency owners. “We also really believe that giving value is going to pay back at some point.”
[29:15] Bob asks The Guys about their plans for 2021 and how they see the landscape further shifting.
[32:18] Brad and Ken discuss Ken’s visit to the mall on Black Friday.
[32:55] Ken shares that on Black Friday there was no one there basically. He saw firsthand that there is a massive impact due to the year’s events. Ultimately online sales for Black Friday weren’t what anyone expected, they didn’t blow previous sales holidays out of the water by any means. So that is a sign of less pressure for things to happen in a short window, spreading out campaigns and sales over time instead of pushed into one weekend or one day.
[34:49] Brad talks about WalMarts changing to distribution centers instead of stores. Whole Foods is a prime example of this, teaming up with Amazon as a small-scale distribution center.
[35:52] Ken talks about making a warehouse a place that you can come inside of and also buy things from. Inside of the mall, there are a lot of opportunities for fulfilling products.
[37:19] Bob proposes a try-on then order model for malls and other retail spaces that are becoming more antiquated.
[38:35] Ken says that it may eventually become a frustrating experience for customers because they want to take things home right away. The Guys discuss how supply chains and shipping companies are already seeing the compilations of this.
[39:26] Bob says that the experience that Amazon has provided of overnight shipping or quick 2-day shipping has now become the expectation across the board, so there is a big push for accommodating that 2-day window.
[43:09] Bob talks about the Tesla 18-wheeler and the guys discuss how distribution models are changing and shifting, with drones and driverless delivery becoming more and more popular as well as possible.