Shows
Blues Brothers PodcastThe Hidden Death Spiral in eCommerceIn this podcast episode, Nathan discusses the prevalent issue of the 'death spiral' that many e-commerce brands are facing in 2024. He explains how rising customer acquisition costs, coupled with a reliance on returning customers, can mask underlying financial problems. The conversation delves into the importance of cohort analysis, understanding customer acquisition costs, and the impact of attrition on revenue. Nathan emphasises the need for brands to track key metrics to identify potential declines in profitability and offers strategies for recovery and sustainability.Takeaways- Customer acquisition costs are rising, impacting profitability.- Returning customer...2024-10-3029 minBlues Brothers PodcastNavigating Agency Accountability & Black Friday Projections with Josh TayIn this episode, Nathan and Josh Tay discuss the importance of accountability in agency relationships, the challenges of forecasting retention and sales, and the necessity of setting realistic goals. They delve into financial transparency, especially during Black Friday, and the impact of offer structures on consumer behaviour. The conversation highlights the significance of profitability over revenue and the complexities of branding in a competitive market.TakeawaysAccountability is essential in agency-client relationships.Forecasting retention sales requires a different approach than acquisition.Setting realistic goals is crucial for agency success.Financial transparency fosters trust between agencies and...2024-10-0343 minBlues Brothers PodcastRound 2 Live eCommerce P&L Teardown with Valentin KuznetcovIn this episode, Nathan and Val dive into a P&L teardown of a business that operates multiple D2C brands. They discuss the importance of accurately structuring the P&L to understand the business's activities and potential to generate profit. They highlight the need to separate and track components of net revenue, such as gross revenue, discounts, returns, and shipping collected. They also emphasise the importance of transitioning from cash accounting to accrual accounting and the challenges of accurately tracking cost of goods sold and inventory. They discuss the significance of tracking transaction fees and the need to...2024-09-051h 02Blues Brothers PodcastLessons Learnt Over The Past 6 Months in eCommerceIn this episode, Nathan shares nine lessons learned from working with brands and running a digital marketing agency. The lessons include the importance of cost of delivery, marketing, and operational efficiency, the value of omni-channel distribution for brands approaching $10 million, the ability to fix P&L exports in accounting software, the effectiveness of Meta (Facebook) as a platform compared to Google, the challenges of measuring incremental return on ad spend for small brands, the role of email and SMS as communication channels for retention, the impact of colour variants on conversions, the benefits of manufacturing revenue spikes through a...2024-08-1524 minBlues Brothers PodcastLive eCommerce P&L Teardown with Valentin KuznetcovIn this episode, Nathan and Valentin dive into a real P&L and discuss the importance of understanding accounting principles and how to read a P&L. They highlight the limitations of a basic P&L structure and the need for a more comprehensive breakdown of revenue and costs. They discuss the impact of discounts and refunds on the business's profitability and the importance of optimising contribution margin. They also touch on the significance of OPEX and the potential for reducing costs to increase profitability. Overall, they emphasise the need for a proper P&L structure to facilitate better...2024-08-0839 minBlues Brothers PodcastDo Email & SMS Create Incremental Profit with Josh TayIn this episode, Nathan and Josh discuss the incremental revenue available through email and SMS marketing. They emphasise that while email and SMS are important communication channels, the true drivers of retention and revenue are merchandising and operations. They explore the concept of purchase intent and how it affects the effectiveness of email and SMS campaigns. They also delve into the importance of understanding the customer journey, leveraging reviews mining for messaging, and creating novelty and exclusivity through merchandising. They highlight the need for a comprehensive retention strategy that goes beyond email and SMS marketing. In this conversation, Josh...2024-07-3159 minBlues Brothers Podcast10 Brutal Truths of eCommerceIn this episode, Nathan discusses 10 brutal truths of e-commerce for DTC brand owners. The first truth is that reducing ad spend is not the solution to higher operating expenses. Understanding how the P&L works and the flow of revenue is crucial. The second truth is that most accounts are either overspending or underspending, and finding the right balance is key. Attribution tends to overattribute bottom-of-funnel actions and underattribute top-of-funnel efforts. Customer repeat rates are largely influenced by merchandising and operations, not just marketing. Site intent is a better measure of success than click attribution. Buying the right products...2024-07-2528 minBlues Brothers PodcastThe Future of Marketing in a One-Click World with Caden ThompsonIn this episode, Nathan and Caden discuss various topics related to Google Ads and agency land. Caden shares his background in marketing and how he got into the digital marketing industry. They dive into the concept of Google's Performance Max and its purpose in reducing the barrier of entry for small businesses. They also discuss the challenges and limitations of using Performance Max and how it can be used in conjunction with other channels. The conversation then shifts to the importance of specialization versus broadening focus in agencies, and the difficulties of upskilling large performance marketing teams. They also...2024-07-1843 minBlues Brothers PodcastEnabling Profitable eCommerce Growth with Carla Penn-KahnCarla Penn-Kahn shares her experience in the e-commerce space, from working in investments at Credit Suisse to starting her own e-commerce businesses. She discusses the challenges of launching perishables by delivery when delivery was primarily for letters, and the operational complexities involved. The conversation then shifts to the importance of financial operations and unit economics in e-commerce, with a focus on the changing landscape of paid media and the need for strong financial operators. Carla also emphasizes the significance of product selection and category in determining lifetime value and the challenges of building customer loyalty. The discussion concludes with...2024-07-0445 minBlues Brothers PodcastWhen to Consider Outsourcing to a 3PL with Valentin KuznetcovIn this podcast episode, Nathan and Val discuss the topic of 3PLs (third-party logistics providers). They cover the factors to consider when deciding whether to use a 3PL, such as cost, volume, and customer service. They also explore the differences between in-house fulfillment and outsourcing to a 3PL, and the considerations for brands with low volume and high ticket products. Val provides insights into the 3PL landscape in Australia and the United States, and emphasizes the importance of conducting a cost-benefit analysis and asking the right questions when evaluating 3PL partners.TakeawaysThe decision...2024-06-2732 minBlues Brothers PodcastQ&A Answering Listeners Questions: LTV, Creative Testing & MoreIn this episode, Nathan answers questions from listeners about budget allocation for retention, the growth of BlueSense Digital, the effectiveness of Advantage Plus, TikTok advertising, server-side tracking, and the importance of creative testing. He emphasises the importance of merchandising in driving lifetime value and suggests that technical competence is key to agency growth. He also provides insights into the volume of creative testing required for effective advertising.TakeawaysLifetime value is largely influenced by the merchandising and quality of the product, rather than marketing efforts alone.Technical competence is crucial for agency...2024-06-2033 minBlues Brothers PodcastHow to Align Google & Meta Ads With Your Business GoalsIn this episode, Nathan discusses how to align Google and Meta campaign builds with business and financial goals. He emphasises the importance of understanding the incentive structure of big tech advertising platforms, which is to maximise advertiser revenue. He also highlights the complexity of customer journeys and the need to allocate budgets strategically. Nathan shares insights on SOP creation, emphasising the importance of data-backed SOPs and having a mental model that explains why. He provides specific strategies for Google and Facebook campaign optimisation and emphasises the correlation between performance and top-line revenue.TakeawaysAligning...2024-06-1336 minBlues Brothers PodcastHow to Scale An eCommerce Brand to $100k per MonthIn this episode, Nathan shares his advice for ecommerce brands aiming to reach $100k a month. He covers the fundamentals of scaling, customer acquisition, resource allocation, and the benefits of being under $100k per month. Nathan emphasises the importance of understanding the business equation, effective resource allocation, and the role of creative in scaling. He also discusses the misconceptions around return on ad spend and the significance of tracking CAC and first purchase contribution margin. In this conversation, Nathan shares valuable insights on scaling an e-commerce business to 100K a month. He discusses key metrics, common mistakes, and actionable...2024-06-061h 00Blues Brothers PodcastMastering Google Ads in 2024 with Michael NadalinIn this episode, Nathan interviews Michael Nadalin, the founder of Market Lead, a niche Google Ads agency in Australia. They discuss Michael's background and the growth of his agency, as well as the importance of expanding scope beyond Google Ads. They also delve into the effectiveness of Google's Performance Max campaign type and the challenges of being a Google media buyer in today's evolving landscape. The conversation covers various topics related to account management, client communication, understanding business goals, and the importance of financial knowledge in marketing. Follow Michael on LinkedIn Here: https://www.linkedin.com/in/m...2024-05-3047 minBlues Brothers PodcastThe State of eCommerce in 2024 with Brendan GillenIn this episode, Nathan interviews Brendan Gillen, an e-commerce expert and founder of Fight Gear Direct and the e-Commerce Academy. They discuss the performance of e-commerce in 2024 and the importance of innovation and adaptation in the industry. The conversation highlights the need for e-commerce operators to understand their numbers, focus on profitability, and find ways to increase average order value. The conversation covers topics such as branding, measuring success, customer acquisition and retention, and the use of AI in e-commerce. Engage and follow Brendan here: Youtube: https://www.youtube.com/@theecomacademyEcom Academy: https://ec...2024-05-2345 minBlues Brothers PodcastBuilding A Word-Class Agency with Kasim AslamIn this episode, Nathan, Sebastian and Kasim discuss what it takes to build a world-class successful agency. They touch on topics such as the importance of talent acquisition, the transition from artisan thinking to systems thinking, and the challenges of scaling the sales portion of the agency. Kasim shares his experience of scaling Solutions 8 and emphasises the need for margin control, niche specialisation, and investing in international labour. He also provides advice for individuals looking to excel within a systems-led organisation, including focusing on high-value tasks and proactivity. The conversation explores the framework for scaling an agency, the importance...2024-05-1653 minBlues Brothers PodcastBecoming First Order Profitable with Valentin KuznetcovIn this episode, Nathan and Val discuss the importance of first-order profitability in e-commerce businesses. The podcast is structured into three sections, firstly setting the scene, secondly how to become first order profitable, and finally how to operate a repeat purchase model. TakeawaysFirst order profitability is crucial in e-commerce businesses to avoid financing losses through repeat customers, investors, or creditors.Accurate gross margin calculations and efficient marketing are essential for achieving first order profitability.Understanding unit economics, including average order value, contribution margin, gross margin, and customer acquisition cost, is key...2024-05-0955 minBlues Brothers PodcastThe Ego-Driven Mistake Most Service Providers MakeIn this episode, Sebastian and Nathan discuss the ego-driven mistake that most service providers make. They emphasise the importance of putting clients above oneself and maintaining an orientation towards the client. They highlight the dangers of pride and self-orientation, such as neglecting client needs, losing trust, and ultimately losing clients. On the other hand, they explain that by putting clients first, demonstrating a passion for their business, and going the extra mile, service providers can build trust, admiration, and long-term client relationships.TakeawaysPut your clients above yourself and maintain an orientation towards the...2024-05-0228 minBlues Brothers PodcastStorytelling & Branding with Matthew BanksIn this episode, Nathan interviews Matthew Banks, the founder of Merchants of the Sun, a sustainable jewellery brand. They discuss the story behind the brand, the importance of creative direction and branding in the jewellery industry, and how Merchants of the Sun stands out in a crowded market. They also talk about the brand's sustainability initiatives and the challenges of scaling an e-commerce business while maintaining the brand's ethos and quality. Matthew shares his insights on building a community, launching new products, and the unexpected challenges of running an e-commerce business.Takeaways...2024-04-2537 minBlues Brothers PodcastThe Death Spiral for Scaling AgenciesSummaryIn this episode, Nathan and Sebastian discuss the two levels of value within an agency and the three major problems that arise during scaling. They emphasise the importance of understanding the agency business model for any business owner who may work with or be approached by an agency. They explain how value is generated through the solution of problems and how agencies achieve economies of scale. They also provide insights on assessing the quality of internal systems and the accountability of agency employees. The conversation discusses three major challenges that agencies face when scaling...2024-04-1851 minBlues Brothers PodcastZero Party Data in D2C eCommerce with Jon IvancoIn this episode, Nathan and John Ivanco (founder of Formtoro) discuss the concept of D2C as a channel, the cost of retail and ad costs, the commoditisation of products, the role of media figures in pushing brands, the value of zero-party data, and the overhyped KPIs in marketing. They also delve into the challenges of attribution and the limitations of attribution software. Overall, the conversation highlights the need for a customer-centric approach and a focus on branding, messaging, and understanding the customer journey.TakeawaysD2C should be seen as a channel rather t...2024-04-111h 02Blues Brothers PodcastDatabase Marketing and Retail Meets eCommerce with Chris DalyChris Daly, an expert in database marketing and retail, discusses various topics related to marketing data, customer segmentation, and customer-generated offers. Chris emphasises the importance of understanding customer value and purpose, as well as the challenges faced by retailers in pricing, targeting, and audience building. Daly also highlights the need for marketing data warehouse services and the potential of machine learning in offer generation. He shares insights on the evolution of e-commerce and the ease of starting an online store. Overall, Daly provides valuable perspectives on the retail industry and offers practical advice for retailers. This conversation covers various...2024-04-041h 05Blues Brothers PodcasteCommerce Analytics, Finances & Operations with Valentin KuznetcovIn this episode, Nathan interviews Valentin Kuznetcov from Optimizator, a fractional CFO specialising in finance, analytics, and operations for e-commerce businesses. Val shares his background and how he became an expert in the field. They discuss the common mistakes made by e-commerce brand owners and the importance of understanding unit economics. Val explains what a fractional CFO is and when businesses should consider bringing one on board. They also explore the transition from D2C to omni-channel and the role of data collection and customer research in building a successful business. In this conversation, Val and Nathan discuss various...2024-03-271h 05Blues Brothers PodcastBecoming A Strong eCommerce Financial OperatorIn this conversation, Nathan and Thomas (from StoreHero) discuss the importance of contribution margin in e-commerce businesses and the shift away from relying solely on ROAS as a metric. They also delve into the impact of operational issues on marketing performance and the need for businesses to understand their true gross margin and operational expenses. Thomas emphasises the importance of building a lean team and aligning revenue goals with profitability. They conclude by highlighting the need for business owners to identify profitability red flags. This conversation explores the importance of understanding unit economics and profitability in e-commerce businesses. It...2024-03-2057 minBlues Brothers PodcastWhy Most Agencies Aren't Right For YouIn this episode, Sebastian and Nathan discuss why most agencies aren't right for e-commerce brands. They emphasise the importance of identifying the problem you want to solve with an agency and being specific about the outcomes and expected ROI. They also highlight the need to consider the type of relationship you want with an agency and validate the culture fit. When vetting an agency, they recommend asking for the why behind their recommendations and an actionable roadmap. They also discuss the number of agencies needed and whether to choose an expensive or cheap agency.Takeaways2024-03-1330 minBlues Brothers Podcast10 Biggest Wastes of Spend for eCommerce BrandsIn this episode, the hosts discuss the 10 biggest wastes of spend for e-commerce brands. They emphasise the importance of focusing on profitability and tracking cash flow. The first waste of spend they discuss is huge website builds, recommending that brands start with a simple and cost-effective website on platforms like Shopify. They also caution against spending on CRO agencies in the early stages, as the ROI may not be immediate. Other wastes of spend include expensive UGC, search campaigns, overinflated Klaviyo list costs, stock inventory mismanagement, inefficient shipping strategies, unnecessary staff, software subscriptions, and SEO.Takeaways2024-03-0635 minBlues Brothers PodcastGoogle vs Facebook Ads for eCommerce StartupsThis conversation discusses the choice between Google Ads and Facebook Ads for e-commerce brands. It covers considerations for choosing the platform based on search volume, novelty, and CPA targets. The conversation also explores the importance of testing both platforms and setting up initial campaigns. It provides insights into the potential of advertising on TikTok and the content requirements for success. Additionally, it addresses budget considerations for startups and established retailers, as well as the impact of cross-channel marketing. The conversation concludes with a discussion on large-scale advertising and optimizing platform allocation.Takeaways- Consider existing...2024-02-2836 minBlues Brothers Podcast10 Biggest Mistakes In eCommerce | Blues Brothers Ep #1SummaryIn this episode, Sebastian and Nathan discuss the 10 biggest mistakes e-commerce brands make. They cover topics such as shiny object syndrome, poor negotiations with suppliers, neglecting average order value, neglecting retention, lacking a blue ocean selling proposition, joining agencies too quickly, churning agencies, and taking on too many agencies. In this conversation, Nathan and Sebastian discuss common mistakes made by e-commerce brands. They cover topics such as misleading ROAS projections, agency costs, choosing the right agency, choosing the right ad platforms, and neglecting conversion rate optimization.TakeawaysFocus on one key...2024-02-211h 03