Why things don’t matter in ecommerce (and why some things really do)...
I want to tell you an oh so common story…
In the past month we’ve scaled a new client from £40,000 to £150,000+ in monthly DTC revenue.
In our first month working with the brand.
(wow!)
Previously they had tried with a few agencies to no success.
And honestly, we were pulling our hairs out as to why this brand hadn’t already scaled
We didn’t know what we were missing
For us the solution seemed so painstakingly clear, that even a blind monkey could get you there…
After a month of wins someone on their team asked us
‘ We're seeing our CTR, drop, cvr drop, and cpc rise from this time last month… Should we turn off the ads and rethink strategy?’
Yes, that genuinely happened.
And it now became abundantly clear what was going wrong
Whilst we had kept new customer roas the same (3.3x!) whilst spending 10x more a day.
They legitimately were proposing to turn off ads which were crushing every important metric, because some unimportant metric was poor.
And this happens.
ALL THE TIME.
And it’s not because they're stupid, or because they spilled their double vanilla soy macha latte on the way to the office this morning.
It’s because everything they’ve been taught has been wrong.
Here is a screenshot of a google search ‘what metrics should I look at with facebook ads’
You can do things which would literally be a fireable offense at my agency, just by following the top google search.
Almost all the information out there is wrong.
And that is why it seems so easy for the few who actually know what to do, to create immense scale.
Employees, and partners, and investors will constantly and continually try to GET IN YOUR WAY.
(Sometimes a blind monkey is better ha ha…)
You need to lean into what works.
Because most of the things you read out there are written by people who have never done it, never spent their money, never even really made a sale in their life.
Here’s what matters in ECOM in order:
Contribution (short term & long term)
Order Revenue
Ad Spend
MER
Everything else is way way way down, and they are only there because they are a function of these metrics.
CTR, CVR, and CPC don’t even get onto the list, because they have literally ZERO effect on the important metrics.
Happy friday,
live long and scale.

