How to Go from Zero to 60 in Customer Acquisition

10.15.2014#MakeMoney

CUSTOMER ACQUISITION FROM ZERO TO SIXTY

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Hi there,

we’re Julep.We are … A beauty 3.0 company launching 300+ products each year… a recognized beauty brand @ Sephora, Nordstrom, and QVC… 4 Seattle area “test lab” parlors

We believe… in beauty without rules… in supporting organizations that empower women through our Powered by Girlfriends program We’re building the first global full-stack beauty brand

@julepmaven

Uh…everything’s perfectly all right now

We’re fine. We’re all fine here now, thank you.

ZERO TO SIXTY

1. Data comes first

2. Understand your customer

3. Learn the ecosystem

4. Embrace Risk

“It is a capital mistake to theorize before one has data. It biases the judgment.” -- Sherlock Holmes

#1 – Data Comes First

1. Get maximum visibility

2. Establish a credible relationship to business results

Get Your Tracking In Order

How To Get The Tracking You Need

1. Pick a platform (ad server, attribution manager)

2. Map out all of the channels

3. Define the activities that matter

4. Partner with engineering on the implementation

5. Partner with Business Intelligence on the financial side

Build A Credible, Meaningful Data Stream

• Get as much measured as possible under a single platform

• Recognize tech limitations – pick the right source of truth for each key component (site, advertising, brand)

• Establish a data connection between front-end activity and business results (ROAS, LTV)

#2 Learn Your Customer

• Who she is

• What she wants

• Why she buys

BRANDS: Topshop, Nordstrom, Sephora

MEDIA: Gmail, Popsugar, Facebook, Pandora, Hulu, MTV, Allure, Vogue

AGE: 18-44GENDER: Female

INTERESTS: Music, art, the environment

OCCUPATION: Store Manager, Retail, Student, Mom

Who She Is….

What She Wants...

Why She Buys

“Beauty is about connection, not competition”

Get And Leverage Consumer Insights

• Find ad tech partners that can provide audience analysis

• Monitor your social feeds and find the common threads that can inform better experiences

• Develop creative and offer variations that test theories about what and why they are buying

#3 Understand The Ecosystem

Learn the ecosystem

Understand Where They Fit

Find The Shortest Path To Your Audience

Engage Marketing Partners That Add Real Value

• Learn the questions to ask to determine what’s different

• Avoid engaging multiple ad partners in the same space unless for the sake of A/B testing

• Understand the value that they add for the consumer as well as the advertiser

#4 Embrace Risk

The laws of physics can and do change at the whim of the biggest marketing platforms

Don’t bet 70% of your conversions on the assumption of a stable marketing environment

Manage Risk For Growth

“The biggest risk is not taking any risk.In a world that is changing really quickly, the only

strategy that is guaranteed to fail is not taking risks”

It’s Not About Throwing Money At The Problem

Offer

AudienceCreative

ChannelDevice

Every Impression Is An Opportunity To TestElement Description Learning Objectives

Image• Close-up hand/ nail• Close-up nail w/ product shot• Beauty Product shot• Polish product shot

• Which image type has the highest CTR (and CVR)?• Which primary image colors have the highest CTR (and CVR)?

Copy• Early access• Fashion/ fast fashion• Discovery• Award winner/ brand building• Value

• Which copy messaging has the highest CTR (and CVR)?• Does the success of different marketing messages vary by age group?

Age• 20-24• 25-29• 30-34• 35-39

• Which age group has the highest CTR?• Which age group has the highest CVR?• Are there ages that click but don’t convert (click-happy, expensive)?

Demographic• Keywords around nail polish brands • Keywords around beauty brands• Keywords around fashion brands• Affinity analysis after we determine who’s

converting/ what’s effective

• How do reach vs. similarity lookalikes compare?• Does branded targeting work?• Does non-branded, more specific keyword targeting work?• Of nail polish, general beauty, cosmetics, and fashion targeting, what is and isn’t working?• How do we scale effective niche audiences?

Bidding Strategy • Yield• CPA

• Which of yield and CPA optimization works best for Julep ads?• Are there audiences that respond better to the different bidding strategies?

Expected Cost ÷

(Total Visibility * Expected Response Rate )

= Cost Per Engagement

Set An Expectation For Every Test

Sometimes You Just Have To Take The Bet

Reduce Dependency Through Diverse Growth

Build And Scale A Diverse Marketing Plan

• Enforce testing structures at every level of the planning process

• Develop proxies for unknown channels and promotions to see if they make sense

• Avoid over-dependency on any one partner / channel

ZERO TO SIXTY

1. Data comes first – TRACK EVERYTHING

2. Understand your customer – WHO AND WHY

3. Learn the ecosystem – AND SIMPLIFY IT

4. Embrace Risk– DIVERSIFY AND EXPAND

How to Go from Zero to 60 in Customer Acquisition

Marketing

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