First, sort out your unit economics!

When we look at diversifying the channels, we need to understand what we’re after.

Are we after revenue/growth or are we after margin/profitability?

Behind those metrics, behind revenue and profitability, there are other metrics that are affecting those.

For instance, the revenue is affected by the traffic, conversion rate, and average order value.

On the other hand, profitability is affected by the same things, plus the customer acquisition cost. So if we want to go one level beyond that, we need to look at what's affecting the conversion rate, the traffic, the AOV, and CAC.?

And then we look at these new metrics, which are important and not in plain sight because we might be trapped into thinking that we need more traffic or we need to lower the CAC because that's our model.

We don't want to acquire customers that expensively.

But what if we can acquire customers more expensively by making them buy more by justifying better the investment?

Having those unit economics sorted out correctly, looking at what are the dominant metrics that are important right now for your eCommerce, makes everything way easier for you.

If you're in the game of increasing the conversion rate, then look at:

• The landing page - invest more in customer research and then in the creative
• The messaging - same as with the LP
• The quality of traffic - consider zero and first-party data
• The cart abandonment rate - survey what stops visitors from buying and what almost stopped customers that bought?

If you're in the game of increasing traffic, then you could look at:

• Diversifying channels => TikTok => but wait, what kind of creatives do you have??

It all starts with the right unit economics and customer research, knowing whom you are targeting.

There is no black or white.?

It's not that TikTok is bad.?

The idea is not to get trapped in the new shiny toy syndrome with TikTok.?

There is all this noise about jumping on the TikTok bandwagon or ignoring it completely - which is kind of amusing because, yes - there is a huge opportunity there.

It’s a channel that is working, providing a better ROAS than Facebook.

Why shouldn't you try it if you have the right creatives and the right products??

However, you have to always respect the principles:

First things, first, and one at a time.

Obliquity is the idea that complex goals are often best pursued indirectly.

"In general, oblique approaches recognize that complex objectives tend to be imprecisely defined. These objectives contain many elements that aren't necessarily or obviously compatible with each other. Furthermore, we learn about the nature of the objectives and the means of achieving them during a process of experiment and discovery."

The objectives are better reached indirectly.

Are you after getting value?

Offer it first.

Do you want to be loved, respected, appreciated?

Offer those things first.

The same goes for eCommerce growth, also.

You have to find the underlying things that should be moved in order to reach your goals.

Things like ADBT, purchase frequency, product return rates, the boring things that nobody tasks about.

But we do.

And the CVO Academy is the place for those willing to learn more about these.