Our biggest weakness right now is the rise and cost of acquisition. We started selling last June, and in order to achieve the conversions, we relied heavily on paid advertising. Although it worked for us, we have seen an increased rise in our total CPA. On top of that, our core offer's margins are not where I would like them to be. Essentially we are battling acquisition costs while battling to try and increase margin. Not the recipe for success. What are we doing and what have we learned? First of all, we experienced the seasonality of our business first hand. Not having the experience in the past, it was hard to make decisions without the data to back it up. We actually increased our ad spend during the winter/spring time in hope's to withstand the seasonality lull. My naivety did not know what to expect. Next year, what if we cut back in total ad spend and allocated resources to bridal expo's, strategic partnerships, our community building? True brand building. The other thing we will do? Introduce new product/services to our store with healthier margins (80%+) At the end of the day, the lessons and struggles we face allow us to learn and grow faster. I'm a firm believer of learning the first time it happens and correcting it so it doesn't again. #growth #building #ecommerce #entrepreneurship
Focus on increasing the conversion rate of the website.
Seasonality and rising acquisition costs are tough. How can we pivot towards sustainable growth amidst these challenges?
A story old as time. I'm guessing there's a fair amount of guessing going into figuring out who your ideal audience is and what about them makes them ideal too. This is kind of why it's everything other than the ads that makes the money, more brands are in the same situation and in my personal opinion trying to grind their way out of it instead of taking a tactical approach.