Let’s look at a case study of The Scaler. You’ll learn from a real example of how we’d approach the strategy for a business owner who’s at The Scaler stage.
As fitness managers building on a strong foundation The Scaler merchant came to me with 12 million in revenue looking to create additional value in their storefront. Their success was in part due to their quantitative orientation. But there was an opportunity to take that focus even further. They wondered how they could recoup revenue being left on the table by visitors with little
to no shopping behavior to lower acquisition costs and to extract even more value from high frequency customers. Finally our Scaler hypothesized that their storefront was in need of updates to optimize the core purchase funnel and to reflect their maturing brands look and feel. Stop and take a moment to think about what
the Scaler should do. Write it down or make a mental note. So now that you’ve established a solid market footing and I’ve been collecting data for a while. It’s time to optimize your core purchase funnel and begin benchmarking yourself consistently. This benchmarking feeds continuous optimization
of standard commerce metrics like average order value but you should consider the entire customer journey, including the post order experience, including fulfillment returns and loyalty programs. Since many brands at this stage are considering new channels, including standalone brick and mortar stores or branded sections inside larger retailers
it’s important to expand your customer journey maps and become more sophisticated in how you track and how you optimize customer interactions across all of these channels. If you are also expand your catalog at this point personalization becomes increasingly important as you distinguish yourself in the market and signal to customers
you understand their needs. Intuitively let’s talk about what to avoid for scales. At this stage is when vertical drivers begin to diverge. For these direct to consumer clients for many brands you hear buzzwords about headless commerce. A r or VR or other exciting new technologies and you
wonder if you’re falling behind. However unless you can clearly identify a major return on such investments I find it’s better to focus on the blockchain and tackling fundamentals of your business and supporting expansion into new channels and expanded product offerings. Also, before you jump into partnerships with large brands
like a target or Walmart or begin building a bunch of your own brick and mortar stores. Ask yourself if your business has the requisite expertise processes and systems in place to support those types of initiatives. From my experience jumping into these activities too early can be critically fatal to up and coming brands so
thinking back to the case study our is excellent mindset energized the engagement with BPA and led us to focus on efficiency performance and finding new ways to improve those measures. So while the foundation of the business was incredibly strong the challenge to growth was finding proof for what actions could drive results to improve efficiencies.