There are many things that might go out of control sometimes, but let's start with product.
Today it's on products that worked offline don't work online.
2021 quarter 1 revenue: SGD15,262.41
2021 quarter 2 revenue to-date: SGD6,031.68
MRR 2021 Goal: SGD0 🟩🟨◻️◻️◻️◻️◻️◻️◻️◻️SGD60k
We are halfway there to match Q1 revenue. That's good.
The bad? iOS 14 update on Facebook kicking in. 🤦🏻♂️
To improve product effectiveness and cater to larger audience within the segment, we reduced the usage of preservatives in the formulation.
Our learning? Such formulation is good for customers but bad for digital sales as a channel. Very bad.
How bad? About 30% product defects.
Before digital, products are sold offline.
With digital, products have 2 variables added to it:
2. Time from production to first usage.
Previous formulation didn't cater for the environment products need to endure during logistics causing up to 30% of product defect i.e. customers getting products with molds.
Rather than compromising by increasing preservatives to improve product stability for logistics, we decided to fix pre-shipping storage conditions and guidelines for customers on storage when products are received.
This helped to reduce product defect to single digits recently.
The second learning in optimizing for digital sales is time from production to first usage by customers.
When selling online, we began getting feedbacks that products are faulty. Upon speaking with customers, we found that one of the reason is there are customers that bought products but only use it months later.
In solving this, we added customer education have products used within 5 days upon receiving it. Solves the issue.
Trying to balance between scaling ads, production, logistics, and customer experience can be daunting.
There are times we made kneejerk decisions that in hindsight are bad for business. But it's a continuous learning continuous improvement path.
If we are not breaking things, then we are not pushing boundaries hard enough to grow out of current limitations.
We still have:
1. Non-optimized website,
2. Cross-border logistics issues,
3. Ad spend limits,
And long list of items that we fix one at a time using revenue as execution triggers.
#AdstruxAsia #Digitalmarketing #BuildInPublic #restorationessence
[Content reposted from Adstrux Asia's Key Account Manager, Richard Moh]