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Scaling E-commerce: Beyond The Magic Wands And Quick Fixes
Episode 16216th November 2023 • eCommerce Podcast • Matt Edmundson
00:00:00 00:58:18

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Step into the e-commerce growth with guest, Ian Hammersley and host, Matt Edmundson as they dissect the numbers that power successful online businesses. In this insightful episode they reveal the seven unexpected KPIs that could catapult your e-commerce store beyond the £10 million mark. Forget surface-level strategies; it's what lies beneath that counts. Tune in to master the art of scaling in the relentless digital marketplace, and turn your e-commerce venture into a towering success.

Here's a snapshot of the key insights shared:

  • The critical role of mathematics in e-commerce scalability, highlighting how margins, average order value, and lifetime customer value are vital indicators of a brand's potential to scale.
  • The importance of knowing and monitoring unexpected yet logical Key Performance Indicators (KPIs) that can dramatically influence e-commerce growth
  • The vast potential of the American market, where even niche products like hosepipe ends can generate multimillion-dollar revenues, vastly outstripping similar markets in the UK.
  • Ian and Matt Edmundson, share anecdotes about the unique challenges and opportunities in smaller markets like New Zealand, where lower competition can be both a blessing and a curse due to the limited consumer base.

ABOUT IAN:

Ian Hammersley is a standout entrepreneur, celebrated as a finalist for the Great British Entrepreneur Awards in 2014. With a knack for ecommerce, he enthralls global directors of mammoth online businesses through lively keynote speeches, while his bestselling book, 'Ultimate Guide To E-commerce Growth,' showcases his seasoned strategies. Beyond print, Ian co-hosts the buzzing Hammersley Brothers Ecommerce Podcast, sharing ecommerce gold with thousands worldwide every week.

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For complete show notes, transcript and links to our guest, check out our website: www.ecommerce-podcast.com.

Transcripts

Matt Edmundson:

Well, hello and welcome to the e commerce podcast

Matt Edmundson:

with me, your host, Matt Edmundson.

Matt Edmundson:

Now this is a show that's all about helping you to deliver e commerce well.

Matt Edmundson:

And to help us do just that, I'm chatting with my very special

Matt Edmundson:

guest today, Ian Hammersley.

Matt Edmundson:

From the Hammersley Brothers, from Smart E Business, he's, they've

Matt Edmundson:

literally written the book they have.

Matt Edmundson:

And we're going to be talking about how to scale e commerce beyond the magic wands.

Matt Edmundson:

And quick fixes.

Matt Edmundson:

Oh, yes.

Matt Edmundson:

But before we get into that, dear listener, let me encourage you,

Matt Edmundson:

if you haven't done so already, to sign up to the newsletter on

Matt Edmundson:

the e commerce podcast website.

Matt Edmundson:

Just head over to ecommercepodcast.

Matt Edmundson:

net.

Matt Edmundson:

And sign up for it, and we'll send you all the show notes,

Matt Edmundson:

links, and all that sort of stuff.

Matt Edmundson:

All free all to magically.

Matt Edmundson:

It's awesome.

Matt Edmundson:

So make sure you do that.

Matt Edmundson:

And also let me give a big shout out to today's show sponsor.

Matt Edmundson:

You've guessed it e commerce cohort.

Matt Edmundson:

If you would like to know more about our monthly mastermind, our

Matt Edmundson:

monthly membership do come and find out more e commerce cohort.

Matt Edmundson:

com.

Matt Edmundson:

All the information is there.

Matt Edmundson:

Everything you could possibly want.

Matt Edmundson:

Everything you could possibly want to know is all there.

Matt Edmundson:

So check it out.

Matt Edmundson:

Come join us.

Matt Edmundson:

We'd love to see you in there.

Matt Edmundson:

And as part of being on the cohort, one of the new features is we live stream

Matt Edmundson:

the recording of the podcast into cohort.

Matt Edmundson:

So you can come and listen to our live recordings like with amazing

Matt Edmundson:

people like Ian, and you can get to ask your questions too, which is.

Matt Edmundson:

thAt's just super, super important, isn't it, really, because you want to know,

Matt Edmundson:

you want, you've got your questions, so if you're in Cohort, come and ask

Matt Edmundson:

those, do join in on the live streams.

Matt Edmundson:

Now.

Matt Edmundson:

Before we get into the conversation, I was just saying to Ian, actually, before

Matt Edmundson:

we hit the record button, that it's great to actually finally get to meet.

Matt Edmundson:

He is a fellow e commerce podcaster, uh, the Hammersley Brothers podcast

Matt Edmundson:

the e commerce podcast with those guys is definitely worth checking out.

Matt Edmundson:

But actually It's it's one of those things where the person that connected

Matt Edmundson:

us is actually Oliver Spock from Sweet Analytics, which is fascinating.

Matt Edmundson:

Oliver's been on the show he's been in cohort as well.

Matt Edmundson:

Legend of a guy.

Matt Edmundson:

Thanks for the connection, Oliver.

Matt Edmundson:

And if you want to know more about Sweet Analytics, check out sweetanalytics.

Matt Edmundson:

com.

Matt Edmundson:

It is a great little thing going on there.

Matt Edmundson:

In fact, we're playing around with Sweet Analytics on one

Matt Edmundson:

of our own e com businesses.

Matt Edmundson:

As I read this.

Matt Edmundson:

So there you go, check it out.

Matt Edmundson:

Now let's talk about Ian.

Matt Edmundson:

Ian is a standout entrepreneur, celebrated as a finalist for the Great

Matt Edmundson:

British Entrepreneur Awards in 2014.

Matt Edmundson:

And with a knack for e commerce, he enthralls global directors of

Matt Edmundson:

mammoth online keynote speeches, while his best selling book, The

Matt Edmundson:

Ultimate Guide to e commerce growth showcases his seasoned strategies.

Matt Edmundson:

Beyond Print, Ian co hosts the Buzzin Hammersley Brothers e commerce

Matt Edmundson:

podcast, sharing e commerce gold with thousands worldwide every week.

Matt Edmundson:

So if you're an e commerce, go check it out, go subscribe

Matt Edmundson:

because it's a great show.

Matt Edmundson:

I listen which is important.

Matt Edmundson:

Ian, great to have you on the show, man.

Matt Edmundson:

Finally we get to have this conversation, so I'm super excited.

Matt Edmundson:

Great that you're here.

Matt Edmundson:

How are you doing?

Ian Hammersley:

hEy Matt, I'm really good.

Ian Hammersley:

I'm really good.

Ian Hammersley:

I haven't met, you recorded all that.

Ian Hammersley:

I thought you did that as an after take.

Ian Hammersley:

That's all like a live recording, isn't it?

Ian Hammersley:

All your intro, your music.

Matt Edmundson:

Yeah, everything.

Matt Edmundson:

I'm impressed.

Matt Edmundson:

I don't know if I would be here when you hear it back.

Matt Edmundson:

But no, we tend to do it all in one take, which is good and it

Matt Edmundson:

keeps it all a little bit fresh.

Matt Edmundson:

It is easy.

Matt Edmundson:

Yeah,

Ian Hammersley:

it is easy.

Ian Hammersley:

You know what, it's great to be here, Matt.

Ian Hammersley:

And like you, I listen to your podcast and we were just saying before.

Ian Hammersley:

When I'm pretending to work out at the gym, I put your podcast on.

Ian Hammersley:

Is that where you generally

Matt Edmundson:

listen to podcasts?

Ian Hammersley:

Sit there doing my little walk on the treadmill.

Ian Hammersley:

Yeah, listening to your your e commerce.

Ian Hammersley:

No, it's great.

Ian Hammersley:

It is great to be here.

Ian Hammersley:

Yeah, I'm excited to get, let's get going.

Ian Hammersley:

A wonderful briefing as well for our podcast, e commerce gold.

Ian Hammersley:

That's...

Ian Hammersley:

It's two, two old blokes,

Matt Edmundson:

two old brothers chatting, that's basically what it is.

Matt Edmundson:

Two old blokes chatting about e commerce.

Matt Edmundson:

But your, the thing I love about your show is you're in Manchester, right?

Matt Edmundson:

Yeah.

Matt Edmundson:

And your brother, Mark, he's in New Zealand.

Matt Edmundson:

New Zealand, yeah.

Matt Edmundson:

So this is this a case of the brothers just, we get on but we don't want

Matt Edmundson:

to be anywhere near each other?

Ian Hammersley:

hE married a Kiwi, that's what he did, let's face it, if he wasn't,

Ian Hammersley:

if he wasn't working with my brother...

Ian Hammersley:

Either said bye, when your business partner says, Oh, I'm going to

Ian Hammersley:

go and I'm going to move across the other side of the world.

Ian Hammersley:

He said, this is a problem.

Ian Hammersley:

Yeah.

Ian Hammersley:

But we managed to, interestingly, the podcast came about

Ian Hammersley:

because we're 12 hours apart.

Ian Hammersley:

So he was driving into work.

Ian Hammersley:

And I was driving home from work and we would start chatting in the car

Ian Hammersley:

about e commerce because of obviously what had happened during the day.

Ian Hammersley:

And so it was very natural.

Ian Hammersley:

That's what happened.

Ian Hammersley:

We ended up just starting to record those conversations and that's where

Ian Hammersley:

the podcast came from, which was.

Ian Hammersley:

As I say, when you go back to some of the early episodes,

Ian Hammersley:

you're like, Oh, dear Lord.

Ian Hammersley:

This is very low tech.

Ian Hammersley:

This is not good.

Matt Edmundson:

Yeah.

Matt Edmundson:

It's fair to say that I'm with you, brother.

Matt Edmundson:

I, some of our earlier part, we were saying before we hit the record button,

Matt Edmundson:

there are people that reach out to us and we do, I'm sure that you're the

Matt Edmundson:

same way and you love to hear from the audience and people connect with me

Matt Edmundson:

either on Instagram usually or LinkedIn and they say, Hey, listen, love the show.

Matt Edmundson:

But every now and again, somebody says to us, Oh I'm loving the show.

Matt Edmundson:

I decided to start at episode one and work all my way through

Matt Edmundson:

and we're like, I'm really sorry.

Matt Edmundson:

Those first few episodes I don't know how you guys did it.

Matt Edmundson:

I've not heard your I should probably go back and listen to

Matt Edmundson:

your early episodes, but for me.

Matt Edmundson:

Please don't.

Matt Edmundson:

And what I did was I just literally grabbed a microphone and just

Matt Edmundson:

started spouting about e commerce.

Matt Edmundson:

Just anything that I knew just came out of my mouth.

Matt Edmundson:

There was a little bit of a structure, but nothing more than that.

Matt Edmundson:

And I think I got to about episode 19 and I said to the team, I

Matt Edmundson:

said, listen, I'm really bored of the sound of my own voice here.

Matt Edmundson:

So that's when we made the permanent switch to doing the interview

Matt Edmundson:

style podcast, which was great.

Ian Hammersley:

Yeah.

Ian Hammersley:

It's got better.

Ian Hammersley:

Yeah, no, it's funny.

Ian Hammersley:

And when when you start doing your podcast and like when, the book we

Ian Hammersley:

wrote, obviously, you put in all this effort and you think literally no

Ian Hammersley:

one's listening at all, so you don't really know how it's going to develop,

Ian Hammersley:

but obviously over time the ramblings of things start to take shape and you

Ian Hammersley:

form this sort of structure as you go.

Ian Hammersley:

In some respects it's a philosophy of business really, is that, you don't

Ian Hammersley:

let perfection get in the way of good.

Ian Hammersley:

And people in e commerce, bringing it back to e commerce, who who try

Ian Hammersley:

to get everything absolutely perfect, sit themselves in a, in a dark room

Ian Hammersley:

somewhere for six months and then emerge thinking they've got it cracked and

Ian Hammersley:

obviously the market's moved on and how e commerce works, it's almost like

Ian Hammersley:

everything's in beta, you're testing.

Ian Hammersley:

All the time and eventually, you get better and it's the

Ian Hammersley:

same thing with everything.

Ian Hammersley:

The podcast and any business really.

Matt Edmundson:

That's such a good way of putting it.

Matt Edmundson:

Always in beta.

Matt Edmundson:

E commerce is always in beta and I like that.

Matt Edmundson:

I might steal that, if I do, I'll try and remember to give you the credit.

Matt Edmundson:

But e commerce is always in beta and it, and you're right, we've all always got

Matt Edmundson:

to Learning, always got to be improving, always got to be iterating, and that

Matt Edmundson:

desire for everything to be just bang on perfect before you do something

Matt Edmundson:

is quite a common desire, I think especially with people starting up, right?

Matt Edmundson:

If they're starting out or if they're re platforming their website, everything has

Matt Edmundson:

to be just so before they do it and it, I think you're right, I think by the time

Matt Edmundson:

you've launched that perfect website, it's

Ian Hammersley:

out of date, right?

Ian Hammersley:

Yeah.

Ian Hammersley:

And and I think it's a danger throughout every phase of e commerce, right

Ian Hammersley:

from the, from starting, but also the ones that are doing, much bigger, 20,

Ian Hammersley:

20, 30 million plus, and it's like the danger of shiny distractions.

Ian Hammersley:

And I think that, that is the fundamental thing that.

Ian Hammersley:

Probably I've spent the most, I've been working in e commerce now for over 20

Ian Hammersley:

years and the thing that, that I've focused on or seen is how you navigate

Ian Hammersley:

through the shiny distractions of e commerce, because our industry is like...

Ian Hammersley:

It's not like an accountancy industry or, a lawyer, solicitors

Ian Hammersley:

where, it's been practicing for hundreds and hundreds of years.

Ian Hammersley:

E commerce is literally embryonic.

Ian Hammersley:

And so this, and it's moving so fast, it's like doggy years, and so if, if

Ian Hammersley:

you spend six months doing something on your e commerce site, you're, and you

Ian Hammersley:

think it's going to move the needle.

Ian Hammersley:

And you get it wrong, it doesn't, you've like, all your competitors

Ian Hammersley:

have just accelerated ahead.

Ian Hammersley:

So I think it's knowing, because there's so much you can do and there's so many

Ian Hammersley:

things that you can plug in and so many things you can focus on, Average

Ian Hammersley:

Order Value, Lifetime Customer Value, Widget Plugins, all sorts of new tech,

Ian Hammersley:

and you're like, what and how do I do?

Ian Hammersley:

And it's knowing what to do and having a framework for taking That

Ian Hammersley:

emotional, emotion out of it and coming up with the rationale to

Ian Hammersley:

actually, have a clear, concise path.

Ian Hammersley:

And, I think that's generally what most people will struggle with, is that scatter

Ian Hammersley:

gun approach that's all over the place and it's I just, I know what I need to

Ian Hammersley:

do, but I don't know what order I need to do it in, because if I get it wrong...

Ian Hammersley:

A could be loads of money, but also it's time is the biggest worry, isn't it?

Ian Hammersley:

I think.

Ian Hammersley:

Yeah.

Matt Edmundson:

You lose.

Matt Edmundson:

Yeah, you're right.

Matt Edmundson:

It's I like the analogy with the accountancy company because they, like

Matt Edmundson:

you say, they've had years, centuries to perfect in effect what they're doing.

Matt Edmundson:

They've got software to help them now, but in effect it's a

Matt Edmundson:

ledger with two columns, right?

Matt Edmundson:

So it's what they, I did accountancy at university.

Matt Edmundson:

The rules haven't changed.

Matt Edmundson:

It's just, it is what it is,

Ian Hammersley:

we don't want to offend any accountancy firms, do we, but no,

Ian Hammersley:

there's no sort of rule book for how you run your e commerce store really as

Ian Hammersley:

opposed to, the ways that the accountancy firms are structured, isn't it?

Ian Hammersley:

And it's, yeah, and it's just, there's an overwhelming danger

Ian Hammersley:

to, to do the wrong thing next.

Ian Hammersley:

And, and, and I think the other thing that people find, I think, is to

Ian Hammersley:

navigate your way through all of that.

Ian Hammersley:

BS, really.

Ian Hammersley:

Take the example I always give, take something like website speed.

Ian Hammersley:

peOple think, or often, people hear people say, website speed, you've got to make

Ian Hammersley:

it faster you've got to make the website faster and then people will repeat, it's

Ian Hammersley:

going to, it's going to, it's going to really improve your conversion rate.

Ian Hammersley:

And it's will it?

Ian Hammersley:

Let's think about it logically, like if you've got a site that's loading

Ian Hammersley:

at I don't know, three seconds, on average, like a three second page load,

Ian Hammersley:

which is, like pretty, pretty average.

Ian Hammersley:

And if you, if you make a website faster, is it going to magically pay?

Ian Hammersley:

Make people buy.

Ian Hammersley:

It's if you put a self service checkout, like a fast service, like

Ian Hammersley:

Tesco checkout in a high end jewelry store, on the high street would

Ian Hammersley:

that magically make people buy?

Ian Hammersley:

No, of course it wouldn't, but it's it's these are the sort of things that are

Ian Hammersley:

spouted out in our industry and people go, Oh, it's gonna, there's this magic.

Ian Hammersley:

It's a thing that's going to make people buy and I think it's a lot of

Ian Hammersley:

the work that I do with my brother is actually taking it right back down

Ian Hammersley:

to the basic fundamentals of retail.

Ian Hammersley:

If our business was a shop, on the high street, how would we lay it out?

Ian Hammersley:

And why would we lay it out?

Ian Hammersley:

And how would we get people in and navigating around the store?

Ian Hammersley:

It's much, much simpler.

Ian Hammersley:

It is.

Ian Hammersley:

Think about it from that perspective.

Ian Hammersley:

Yeah, it is.

Matt Edmundson:

No, I like that because actually, for me, commerce is still a

Matt Edmundson:

lot about old school principles, right?

Matt Edmundson:

Technology's changing, the way people buy are changing, and

Matt Edmundson:

we've got to keep up with that.

Matt Edmundson:

But the principles of...

Matt Edmundson:

How to deal with people, even online, are still pretty timeless, aren't they?

Matt Edmundson:

And you still want to treat people properly, with respect.

Matt Edmundson:

You still, there's all these things that you can think about.

Matt Edmundson:

But we think because it's e commerce, those rules don't apply.

Matt Edmundson:

So you do focus in on, Oh, I just want to get my site speed.

Matt Edmundson:

I want to get that magic green number on the Google page speed test.

Matt Edmundson:

And it's yeah, but if there's a fundamental problem with how you're

Matt Edmundson:

connecting with people, how you're talking with people, the language you're using

Matt Edmundson:

on the website, but I think I know which is the bigger problem to solve, yeah.

Ian Hammersley:

It's I think, in some e commerce businesses speed.

Ian Hammersley:

If you've got people are adding, 10 things to the basket, like a, like AB two B site,

Ian Hammersley:

the speed just be to quite important.

Ian Hammersley:

But like the average lifetime customer value, so the amount of times people

Ian Hammersley:

shop online in a year in a typical e-commerce business is 1.2 times a year.

Ian Hammersley:

It's like they're not coming to the site that often, like they're

Ian Hammersley:

only buying 1.2 times in a year.

Ian Hammersley:

Yeah.

Ian Hammersley:

For them, they're not buying because the website's fast.

Ian Hammersley:

They're buying because.

Ian Hammersley:

They believe that, we've convinced them that there's our abilities there,

Ian Hammersley:

that we've removed their anxiety, we've positioned the brand and actually believe

Ian Hammersley:

that we're going to, we're actually going to get the product to us, that we want.

Ian Hammersley:

And, that's why they buy.

Ian Hammersley:

And I always think, going back to the analogy of e commerce,

Ian Hammersley:

it is all about people.

Ian Hammersley:

And if you're looking at your Google Analytics and you're looking at

Ian Hammersley:

your sessions, like that's people.

Ian Hammersley:

Okay.

Ian Hammersley:

Apart from a bot, let's not talk about bots, but let, the

Ian Hammersley:

sessions, it's people, isn't it?

Ian Hammersley:

It's actually people coming in.

Ian Hammersley:

And I always say.

Ian Hammersley:

Imagine if your e commerce store was a physical shop on the high street

Ian Hammersley:

and just close your eyes for a minute and just go imagine if someone, if

Ian Hammersley:

I could see people coming into the shop and I might get people who, go

Ian Hammersley:

over to a, a bunch of shelves and put something in the basket and then drop

Ian Hammersley:

the basket on the floor and walk out.

Ian Hammersley:

You could see this happening and then maybe some people would would go over to

Ian Hammersley:

the till and they're about to buy and then they just leave the basket on the floor

Ian Hammersley:

and then run out of the shop, or there was some people that were just about to

Ian Hammersley:

put the credit card on the contact list and they just abandoned and then you

Ian Hammersley:

end up like with all these empty baskets all over the shop and you'd have some

Ian Hammersley:

people that had come in the shop and just walk out the door and it like, this is.

Ian Hammersley:

This is how we break down the conversion rate, because it's like

Ian Hammersley:

how many people add to basket?

Ian Hammersley:

On average, it's about 10 percent should add to basket.

Ian Hammersley:

And then of those people that add to basket, about 50 percent of

Ian Hammersley:

them should go to the checkout.

Ian Hammersley:

Yeah.

Ian Hammersley:

And then about 85 percent of them who go to the checkout should actually buy.

Ian Hammersley:

So if you think about, because if someone says to you, oh, get your

Ian Hammersley:

conversion rate high, you just need to get your conversion rate high.

Ian Hammersley:

It's it's completely pointless.

Ian Hammersley:

It's like saying, be more successful, just sell more stuff.

Ian Hammersley:

It's It's

Ian Hammersley:

really irritating.

Ian Hammersley:

So you've got to break it down to those things.

Ian Hammersley:

And I think, what we often find as well is that in fact, true

Ian Hammersley:

story, there's a business in Manchester, a fashion econ brand.

Ian Hammersley:

That we're doing, we're pretty big, doing about 20 million and

Ian Hammersley:

they wanted to improve their, they thought to improve their conversion

Ian Hammersley:

rate, they'd improve the checkout.

Ian Hammersley:

Let's improve the checkout.

Ian Hammersley:

And they were obsessed over it, it took them about six months and spent a lot

Ian Hammersley:

of money and time trying to make their checkout really slick and, roll it out.

Ian Hammersley:

After six months of absolute blood, sweat and tears, and nothing

Ian Hammersley:

happened, like no, nothing happened.

Ian Hammersley:

There was no improvement to checkout whatsoever, no improvement to

Ian Hammersley:

conversion rate, like the drop off was identical, there was no change at all.

Ian Hammersley:

And when you look back and you go, obviously there wasn't

Ian Hammersley:

going to be any change, because their checkout to order stats.

Ian Hammersley:

Was already at 92% and the average is 84.

Ian Hammersley:

So you're like, you're already way higher than average.

Ian Hammersley:

But guess what's low?

Ian Hammersley:

That like their add to basket stack was less than 4%.

Ian Hammersley:

So they've got less than 4% of people running to basket.

Ian Hammersley:

And you're like what?

Ian Hammersley:

That's why you should spend your time.

Ian Hammersley:

Yeah.

Ian Hammersley:

At which then they did subsequently did spend the time and, they, they

Ian Hammersley:

put a little bit of effort in there and they got the ad to basket up to

Ian Hammersley:

about 6%, which was like revolutionary.

Ian Hammersley:

They massively increased the conversion rate and I think they added like a

Ian Hammersley:

couple of million quid, just by, and if they'd started looking at the how many

Ian Hammersley:

ad to basket, how many go from basket to checkout and they looked, they see

Ian Hammersley:

where the opportunity is and it's.

Ian Hammersley:

Simple stuff like that, once you figure, once you understand that, you go, oh that

Ian Hammersley:

makes sense, why are we faffing around, and the same thing about if it was a

Ian Hammersley:

physical store, if you had a physical shop, you'd be like faffing around

Ian Hammersley:

with the wallpaper behind the checkout.

Ian Hammersley:

Because, you think that's going to make people check out better.

Ian Hammersley:

Actually, it'd be far better to look at the fact that you, no one can find

Ian Hammersley:

your bloody products in the first place.

Ian Hammersley:

You No,

Matt Edmundson:

this is all good stuff.

Matt Edmundson:

And I'm busy taking notes in cause I, all very helpful.

Matt Edmundson:

What sort of things then if we go through this, going back to the example of the

Matt Edmundson:

company, their add to basket rate was 4%.

Matt Edmundson:

Work on that.

Matt Edmundson:

They increased it by 50%, 6%.

Matt Edmundson:

What sort of things would, did they do, or would you recommend people do to it?

Matt Edmundson:

If they're struggling there, how do we increase our

Ian Hammersley:

add to basket rate?

Ian Hammersley:

Yeah.

Ian Hammersley:

So that particular business actually was very.

Ian Hammersley:

tyPical of a lot of e-com businesses now that, if you break it down,

Ian Hammersley:

so their add to basket was 4%.

Ian Hammersley:

So that, so for them, we'd probably say, the average order

Ian Hammersley:

value was about 80 pounds.

Ian Hammersley:

Something like that.

Ian Hammersley:

Yeah.

Ian Hammersley:

So we'd say, okay, let's try and get your ba add to basket up.

Ian Hammersley:

Let's try and really focus on it.

Ian Hammersley:

So somebody like that, maybe about 8% and basically.

Ian Hammersley:

Once you, if your ad basket is low, you have to look at where they're landing.

Ian Hammersley:

So now the average amount of people that land on the product page,

Ian Hammersley:

about 60 percent of a normal e com business land on the product page.

Ian Hammersley:

So they don't go to the home, like 20 percent is home, 20 percent is category.

Ian Hammersley:

And then 60 percent is product, so normally, and so the product

Ian Hammersley:

page is the new landing page.

Ian Hammersley:

And then you look at the fact that, how much was mobile, how much was desktop,

Ian Hammersley:

and this particular business is 75 percent was mobile, and so you're like, okay,

Ian Hammersley:

so they're all landing on the product page, and they're all on mobile, And

Ian Hammersley:

so you that's where we need to start.

Ian Hammersley:

And then you look at what are the most popular products?

Ian Hammersley:

And there's no, the 80 20 rule, like there's always the best sellers.

Ian Hammersley:

And you go these are the products they're landing on.

Ian Hammersley:

So you then start to know exactly where they're landing.

Ian Hammersley:

What device that they're on and obviously then you optimize that because you

Ian Hammersley:

can't do everything You know that in this particular business had I think

Ian Hammersley:

go thousand or two products a couple of thousand products So you're like

Ian Hammersley:

actually the way where we should optimize is where we're spending the money

Ian Hammersley:

like they know And the reason why the landing on the product page on mobiles

Ian Hammersley:

because that's where they're at the ants Oh, that's where the customers were.

Ian Hammersley:

Cause it was, they're looking at their own Google shopping and on Facebook

Ian Hammersley:

product ads and all meta products.

Ian Hammersley:

You Facebook when we looked at it, but you get a good idea.

Ian Hammersley:

And basically the next thing to look at was that their

Ian Hammersley:

bounce rate was really high.

Ian Hammersley:

People are landing on the product page on the mobile and the bounce

Ian Hammersley:

rate was like 80 about 85%.

Ian Hammersley:

Yeah Now the average bounce rate for a product page should be less than 60%.

Ian Hammersley:

So this particular business, how do they bounce rate at 80?

Ian Hammersley:

And so there's the other, benchmark is if the bounce rate for the homepage

Ian Hammersley:

should be less than 25 bounce rate for a collection or category page should

Ian Hammersley:

be less than 50 and the bounce rate for a product page should be less than 60.

Ian Hammersley:

So you go well normally when the ad basket is low, it's cause

Ian Hammersley:

there's a bounce rate problem.

Ian Hammersley:

So you go okay, if I get the bounce rate.

Ian Hammersley:

Lower, we are naturally, we go, we should get an increase anti basket and

Ian Hammersley:

if the ante basket's higher, we should get an increase of conversion rate.

Ian Hammersley:

And if the conversion rate's higher, we should get an increase of roas.

Ian Hammersley:

Which means we could then pull the traffic lever again.

Ian Hammersley:

So it's just, it's following the route up rather than having this

Ian Hammersley:

generic, let's do everything.

Ian Hammersley:

'cause essentially in Ecomms, I think if you do everything, you don't do anything.

Ian Hammersley:

Yeah.

Ian Hammersley:

Because it's just waste of time.

Ian Hammersley:

Often, and it can be expensive.

Ian Hammersley:

So essentially with that particular business.

Ian Hammersley:

It's, it was product page mobile and what you're really doing then

Ian Hammersley:

is you're looking at okay, are we positioning the business correctly?

Ian Hammersley:

Do they, do people know who we are?

Ian Hammersley:

Do we pass the busy restaurant test, which is something that Mark and I came

Ian Hammersley:

up with, which was the positioning.

Ian Hammersley:

And sometimes people put their positioning on the homepage, like where

Ian Hammersley:

the UK is leading such and such with, 50, 000 amazing reviews and then they

Ian Hammersley:

don't put that on the product page.

Ian Hammersley:

Then no one ever sees it because they're landing on the product page.

Ian Hammersley:

So there's and the Busy Restaurant Test.

Ian Hammersley:

I'll just tell you a story really quick.

Ian Hammersley:

Go for it.

Ian Hammersley:

If you, if I may, you don't want, don't wanna go down too many rabbit

Ian Hammersley:

holes and you have to bring me back, Matt, and problems with you and me.

Ian Hammersley:

We'll just end up chatting here for days.

Ian Hammersley:

But the busy restaurant test is the idea that, let's say you are in a, someone

Ian Hammersley:

like Paris or London or something and you're with your partner and you're

Ian Hammersley:

hungry, you are really hungry and you are walking down the high street and you

Ian Hammersley:

need to find somewhere to eat quickly.

Ian Hammersley:

And two restaurants.

Ian Hammersley:

And one, one restaurant is nicely full, nicely busy, and the other

Ian Hammersley:

restaurant is completely empty.

Ian Hammersley:

And you say which restaurant do you want to eat in?

Ian Hammersley:

And you say I'll go to the busy one.

Ian Hammersley:

Why?

Ian Hammersley:

Because there's people in it.

Ian Hammersley:

So there's evidence that it must be good.

Ian Hammersley:

And you're like, at this point, you don't even know if the food's any good.

Ian Hammersley:

You can't even see the food.

Ian Hammersley:

You can't even see the menu, but people in it and you go it must be good.

Ian Hammersley:

And there's loads of.

Ian Hammersley:

There's a like nanosecond of time where people make the decision whether

Ian Hammersley:

or not they should stay, should stick around, and am I going to find what

Ian Hammersley:

I want in this e commerce store?

Ian Hammersley:

Should I bother to invest my time here?

Ian Hammersley:

Cause the overwhelming temptation is to go back into Google or Instagram

Ian Hammersley:

or wherever the hell you work and try and find it from somewhere else, cause

Ian Hammersley:

you can, it's not like being in a...

Ian Hammersley:

A town on the high street where, you're the only, shop that

Ian Hammersley:

sells hammers in this town.

Ian Hammersley:

Yeah.

Ian Hammersley:

And that's where like the e coms change and I think, you have to position it

Ian Hammersley:

because you, you might be one of 300 shops in the town selling the same hammer

Ian Hammersley:

or whatever you're selling, online is, it's like walking into the Trafford set.

Ian Hammersley:

We have a.

Ian Hammersley:

The shopping, big shopping mall near me in Manchester called the Trafford

Ian Hammersley:

Centre, there's about 300 shops in there.

Ian Hammersley:

And I always say to people, it's imagine if you walked into the Trafford Centre and

Ian Hammersley:

there's 300 shops in there, all selling the same stuff that you're selling.

Ian Hammersley:

And you're like, as a customer, where, why would you buy from you?

Ian Hammersley:

How are you going to position people to get to come in and buy and that's

Ian Hammersley:

a really difficult question for a lot of econ businesses because

Ian Hammersley:

they often say things like, Oh we just got great customer service.

Ian Hammersley:

We're a family business, we've got great customer service, we

Ian Hammersley:

really look after your customers.

Ian Hammersley:

And then you go to the website and you're like there's no evidence

Ian Hammersley:

you are what you say you are.

Ian Hammersley:

Like, there's nothing, you're not even saying that.

Ian Hammersley:

And things like trust and credibility is a big one, and the only way to

Ian Hammersley:

demonstrate trust and credibility is to prove it, to actually show it.

Ian Hammersley:

You can't say, we're great.

Ian Hammersley:

You have to show.

Ian Hammersley:

Evidence of trust from customers and credibility often from a third party.

Ian Hammersley:

Anyway, I'm rambling.

Ian Hammersley:

I'm rambling a lot now.

Ian Hammersley:

No,

Matt Edmundson:

it's good.

Matt Edmundson:

It's good.

Matt Edmundson:

I'm curious, as you're talking, who do you think is doing this well at the moment?

Matt Edmundson:

Positioning their brand well, showing that sort of trusted

Matt Edmundson:

credibility that you're talking about.

Ian Hammersley:

Yeah, there's a couple of examples that I always throw out there.

Ian Hammersley:

One of them, one of them is Spoke London, so there's a business called Spoke

Ian Hammersley:

London, it's a UK business, Southern Men's Chinos and what we often find is that

Ian Hammersley:

the positioning of an e com business.

Ian Hammersley:

It should be based on two things, like what people want and what they don't want.

Ian Hammersley:

And the way to find this, so that spoke London, if you're buying, they

Ian Hammersley:

sell men's trousers online, right?

Ian Hammersley:

If you've, if you ever bought trousers online, particularly

Ian Hammersley:

trousers, and for particularly for men, but the thing that we...

Ian Hammersley:

One is we want it to fit like we're anxious about for

Ian Hammersley:

what happens doesn't fit me.

Ian Hammersley:

Yeah.

Ian Hammersley:

Like that, that's what we're really bothered about.

Ian Hammersley:

So their positioning is they're focused on the biggest pain or anxiety when

Ian Hammersley:

you're buying something online, trousers which is fit, but will it fit me?

Ian Hammersley:

And then that whole strap line is the best we know fit no one else,

Ian Hammersley:

we've got over 400 custom fit.

Ian Hammersley:

And so that's their positioning.

Ian Hammersley:

And then they back that up with a quote from the Telegraph saying,

Ian Hammersley:

the, the ultimate go to best fitting Chino we've ever tried.

Ian Hammersley:

So they've got that third party and then their reviews from their

Ian Hammersley:

customers are all talking about fit.

Ian Hammersley:

Oh my God, I never thought I'd find a pair of Chinos that would fit me as well.

Ian Hammersley:

And and it just repeats it.

Ian Hammersley:

So they've positioned it on fit.

Ian Hammersley:

And then they're backing it up with third party credibility

Ian Hammersley:

and evidence from customers.

Ian Hammersley:

And to be honest, like 50 percent of e commerce is about,

Ian Hammersley:

it's about getting that yeah.

Ian Hammersley:

Particularly now.

Ian Hammersley:

And they did it.

Ian Hammersley:

And each industry in e com, there's always a different like anxiety.

Ian Hammersley:

Take something like gifting.

Ian Hammersley:

The gifting isn't obviously about fit, but the gifting anxiety is,

Ian Hammersley:

will it arrive on time for the event?

Ian Hammersley:

Like for the birthday, is it going to arrive?

Ian Hammersley:

So and then the second one is well, what happens if they don't like it?

Ian Hammersley:

And so and then you go well Then we know that we know what they're bothered

Ian Hammersley:

about because we can see it in the because that's what the negative reviews

Ian Hammersley:

are You always we always look at we do something called the anxiety test.

Ian Hammersley:

Yeah, you look at the reviews.

Ian Hammersley:

That's brilliant all your competitors Like what people love about

Ian Hammersley:

them and they hate about them.

Ian Hammersley:

It's all online go on Trustpilot no one does this we like we love doing it.

Ian Hammersley:

We love doing it.

Ian Hammersley:

I'm with you

Matt Edmundson:

I spend a lot of time looking at reviews from other sites here

Ian Hammersley:

It's so good, and then essentially you go back,

Ian Hammersley:

like gifting, and you say are we addressing the biggest anxieties?

Ian Hammersley:

Which is, will it arrive on time, and what happens if they don't like it?

Ian Hammersley:

And often the answer is no.

Ian Hammersley:

You're not saying when it's going to arrive, guaranteed delivery, next day,

Ian Hammersley:

or super fast dispatch, or, guaranteed next day delivery, in stock you don't

Ian Hammersley:

even say if it's in stock sometimes.

Ian Hammersley:

And then the second one is, what happens if they don't like it?

Ian Hammersley:

You just put, 60 day returns don't put a bloody 14 day, or

Ian Hammersley:

even a third, it's not enough.

Ian Hammersley:

You buy a gift for somebody, you want an extended return, nobody returns

Ian Hammersley:

gifts anyway, so it's like free money.

Ian Hammersley:

So you have to put this, and you have to put it in the place that people

Ian Hammersley:

see it you wouldn't put it in the terms and conditions, you've got

Ian Hammersley:

to put it next to the after baskets so people can actually see it.

Ian Hammersley:

And once you do that review mining.

Ian Hammersley:

Your positioning becomes quite clear and, the job to be done for gifting

Ian Hammersley:

is the emotional reaction that your gift recipient is going to receive.

Ian Hammersley:

So if I gave you a gift, I'm going to be like, oh my god,

Ian Hammersley:

Matt's going to love this.

Ian Hammersley:

I can't wait to see his face.

Ian Hammersley:

When I give it to them, that's the job to be done.

Ian Hammersley:

That's what I'm buying.

Ian Hammersley:

And the marketing then.

Ian Hammersley:

On, on, on social should technically be little videos of people go,

Ian Hammersley:

Oh my God, this is amazing.

Ian Hammersley:

Thank you so much.

Ian Hammersley:

Cause that's the job to be done.

Ian Hammersley:

So it's on, it's just understanding I think psychologically where people

Ian Hammersley:

are when they're starting that decision and what they want and we've

Ian Hammersley:

done loads of bloody, work around if it's a problem, like if you're

Ian Hammersley:

selling a, like a replacement fridge It's very different to selling a

Ian Hammersley:

beautiful cashmere scarf of 500 pounds.

Ian Hammersley:

Isn't it different?

Ian Hammersley:

The needs are different, aren't they?

Ian Hammersley:

Yeah.

Ian Hammersley:

Yeah.

Ian Hammersley:

So you have to, is it desirability, is it problem solving?

Ian Hammersley:

Is it convincibility?

Ian Hammersley:

But it's, to be honest, it's the same method.

Ian Hammersley:

It's just you have to understand psychologically what, what doubt they

Ian Hammersley:

want, which the anxieties, how can we get rid of all those anxieties

Ian Hammersley:

and what do they want, which is desirability or preventability,

Ian Hammersley:

and then you back it up with.

Ian Hammersley:

With evidence that we've done it.

Ian Hammersley:

Ah, great.

Matt Edmundson:

And everyone will be checking out Spoke London now.

Matt Edmundson:

I've actually been on their website and they send me, or they used to send me,

Matt Edmundson:

I've not sent me, maybe because I've moved actually, I told them my new address,

Matt Edmundson:

but they send those little well done, mini catalogue type things, the little

Matt Edmundson:

paper things, which are quite lovely.

Matt Edmundson:

So I know the site that you mean, and yeah I fully appreciate, it's a great example.

Matt Edmundson:

Were you involved with that, or did you just think it's a good example?

Matt Edmundson:

No,

Ian Hammersley:

no, we, no, I'd to say, I think we did have a chat

Ian Hammersley:

with them once, but, they're, like most of our great ideas, we just.

Ian Hammersley:

We see somebody's doing a good job and we then we go, oh, that was clever.

Ian Hammersley:

I like that.

Matt Edmundson:

I like that.

Matt Edmundson:

We'll that a lot.

Matt Edmundson:

Yeah.

Matt Edmundson:

We do that a lot.

Matt Edmundson:

And like you, I do a lot of mining through reviews.

Matt Edmundson:

Not only our reviews, but the reviews of competitors, the reviews of similar

Matt Edmundson:

products which might not even be a direct competitor and you're always

Matt Edmundson:

looking for the common statements or the common questions that people have, or

Matt Edmundson:

the common, this solved this problem, that sort of information, aren't you?

Matt Edmundson:

And it's, I'm always surprised at how many people don't do it, but it is just

Ian Hammersley:

a gold mine And I think I actually call it like the gold nuggets

Ian Hammersley:

of e commerce because, you always find...

Ian Hammersley:

These really great reviews.

Ian Hammersley:

So you know, we did it for a big cookware retailer in the UK, one of the biggest

Ian Hammersley:

and we were looking at saucepans and like they're trying to, they're trying

Ian Hammersley:

to sell, more saucepans and there was a non stick saucepan and you look at

Ian Hammersley:

the, and it's like when I say this, it's so obvious, but like until you

Ian Hammersley:

look at the reviews what they're good.

Ian Hammersley:

And we, we looked at I mean we're nerds, we looked at

Ian Hammersley:

thousands, one of the reviews.

Ian Hammersley:

The good reviews is, it says things like, it's truly non stick.

Ian Hammersley:

And it said, there was another one that said, It's so easy to clean,

Ian Hammersley:

even my teenage son couldn't do it.

Ian Hammersley:

You're like, there's

Matt Edmundson:

my box in Strathlane.

Ian Hammersley:

That's it!

Ian Hammersley:

That's the job to be done, that's what you want.

Ian Hammersley:

The opposite is is, basically, it's hard to clean and let it work.

Ian Hammersley:

It was a pain.

Ian Hammersley:

And so you know what people want, so you exactly, you know how to position

Ian Hammersley:

it and then you know what to back it up.

Ian Hammersley:

So yeah, it's like a gift.

Ian Hammersley:

Lots of people don't do it, which is a mistake in my opinion.

Matt Edmundson:

Yeah.

Matt Edmundson:

Now like you, I can't begin to tell you how many headlines I've used because it's

Matt Edmundson:

a comment written in someone's review.

Matt Edmundson:

Yeah.

Matt Edmundson:

And you just think, even ChatGPT couldn't have come up with that,

Matt Edmundson:

it's just, it's a beautiful thing.

Matt Edmundson:

And so yeah, we, I like that, even my teenage son could clean it.

Matt Edmundson:

How to sell out your saucepan range, just put that in the...

Ian Hammersley:

It's just, and once you see those reviews,

Ian Hammersley:

you just know, ah, that's it.

Ian Hammersley:

And actually the...

Ian Hammersley:

We often find that people will install the latest Trustpilot widget or

Ian Hammersley:

whatever widget, review widget, and they'll just plonk it on and go, Oh,

Ian Hammersley:

there you go, I've put my reviews on.

Ian Hammersley:

And it's no, because what problem is when you just plonk on the

Ian Hammersley:

a generic review engine that's pulling through the latest reviews.

Ian Hammersley:

You end up getting reviews on there that have nothing to do with

Ian Hammersley:

the job to be done or anxiety.

Ian Hammersley:

And, for example, for the cookware brand, we would know, for that

Ian Hammersley:

saucepan, that people really want to see evidence that it's truly non stick,

Ian Hammersley:

and that's what they're bothered about.

Ian Hammersley:

So if the reviews come through and they go, oh, it arrived next day...

Ian Hammersley:

People aren't buying the source because it arrives the next day.

Ian Hammersley:

We often like to cherry pick the reviews and highlight them.

Ian Hammersley:

And bring them out.

Ian Hammersley:

And then, that's what you put in your Instagram, Facebook ads, you

Ian Hammersley:

put in your welcome series, all your emails, that's what you put

Ian Hammersley:

on the website, all over the place.

Ian Hammersley:

You're starting to bring that story and tell that story on throughout everything.

Ian Hammersley:

And it's, I don't know that, this is, I think it's 50 percent of it is.

Ian Hammersley:

It's about finding the right positioning and then backing it

Ian Hammersley:

up with trust and credibility.

Matt Edmundson:

It is because I like, what you're in effect doing is you're talking.

Matt Edmundson:

A language that matters to the customer in a way that they understand on

Matt Edmundson:

you and this again goes back to the earlier comment of e commerce is about

Matt Edmundson:

old school principles using in effect modern technology as a form of delivery.

Matt Edmundson:

It's still the same thing.

Matt Edmundson:

What matters to your client?

Matt Edmundson:

Talk in a way that matters to them and and you'll be amazed

Matt Edmundson:

at just doing that simple thing.

Matt Edmundson:

It's it's quite an incredible thing.

Matt Edmundson:

What's your just on a slight tangent here, Ian since we're talking

Matt Edmundson:

about reviews, how let's say I'm a econ business just starting out.

Matt Edmundson:

My reviews aren't great in terms of numbers.

Matt Edmundson:

What sort of things can I do to go and get more reviews, do

Ian Hammersley:

you think?

Ian Hammersley:

Yeah, I think the first thing to note is actually, the biggest

Ian Hammersley:

thing you have to demonstrate with e commerce is really evidence

Ian Hammersley:

that you can, back up your claims.

Ian Hammersley:

And sometimes the worst thing you can do is actually put, we've got ten

Ian Hammersley:

reviews, or, and I always say anything, actually anything less than a thousand.

Ian Hammersley:

You know what, in some respects it can do more harm if you've got the

Ian Hammersley:

widget on there, the Trustpilot widget that says, hey, yeah, we've

Ian Hammersley:

got 200 reviews, rated, and it actually makes you look like you're,

Ian Hammersley:

selling from your bedroom sometimes.

Ian Hammersley:

You look, you don't, you look.

Ian Hammersley:

So I actually say hide, you're better off hiding your, your

Ian Hammersley:

kind of small review count.

Ian Hammersley:

And you're better off, coming up with better positioning around,

Ian Hammersley:

how many products you've sold or how many customers you've had

Ian Hammersley:

or how long you've been trading.

Ian Hammersley:

Yeah.

Ian Hammersley:

Because it just looks a lot more impressive and I really don't buy the.

Ian Hammersley:

obViously it depends on who you are and what you're selling, but generally,

Ian Hammersley:

people are sceptical and, people don't know because when you're on, when you're

Ian Hammersley:

in, when you're buying on the high street or in a supermarket, shopping

Ian Hammersley:

arcade, you can see the shop, right?

Ian Hammersley:

You know that it's there, it's credible.

Ian Hammersley:

When you're online, people are much more sceptical about

Ian Hammersley:

who the hell are these guys?

Ian Hammersley:

Are they a guy in his bedroom?

Ian Hammersley:

Are they a big mash and mash?

Ian Hammersley:

And people don't want to feel that they're going to be let down.

Ian Hammersley:

Yeah, generally, and obviously to try to get more reviews, really, you have to

Ian Hammersley:

ask for it, we have, some industries tend to get, naturally, more reviews, we're

Ian Hammersley:

working with a jigsaw company at the moment, and And they're selling jigsaws

Ian Hammersley:

to probably slightly older demographics.

Ian Hammersley:

And I think when they email them and say, can you give us a review?

Ian Hammersley:

I think they go this is part of the process.

Ian Hammersley:

I'm like, I've got to do this.

Ian Hammersley:

So they get a little like.

Ian Hammersley:

Over I think one's got 40, 000 reviews on Trustpilot, and we're

Ian Hammersley:

like, holy God, how did you get that?

Ian Hammersley:

And so I just asked for it, whereas in other industries, the same

Ian Hammersley:

thing doesn't work quite as well.

Ian Hammersley:

They're not bothered.

Ian Hammersley:

Yeah but it obviously does over time, it does it does grow.

Ian Hammersley:

Yeah.

Ian Hammersley:

One, one, one little trick actually, just in the perspective of us completely

Ian Hammersley:

learning all the time, whenever we're working with an e com brand.

Ian Hammersley:

It's always something you learn and one did it the other day and they said,

Ian Hammersley:

Oh before we send the, the review on Trustpilot or wherever it, whatever review

Ian Hammersley:

engine it was we email them personally and we say, Hey, welcome to our brand.

Ian Hammersley:

We're so proud.

Ian Hammersley:

We're, we are, we're a family business, we really want you

Ian Hammersley:

to have a great experience.

Ian Hammersley:

So if there's anything that you're not.

Ian Hammersley:

Entirely happy with, please let us know and we'll put it right.

Ian Hammersley:

And they did a video of them and I think like one of them, like the,

Ian Hammersley:

she's holding like the, she's at home.

Ian Hammersley:

Yeah.

Ian Hammersley:

She's holding a baby.

Ian Hammersley:

And there's and they get so many emails back saying I was going to

Ian Hammersley:

give you a one star review because it the, the postman left it on

Ian Hammersley:

the, with the doorstep, whatever.

Ian Hammersley:

But actually, I'll reach out to you and then that massively helped them

Ian Hammersley:

get the the five star like rather than negative reviews because sometimes

Ian Hammersley:

you can get the odd negative review and it's, it is as an owner, it's

Ian Hammersley:

quite soul destroying, isn't it?

Ian Hammersley:

Yeah, you

Matt Edmundson:

take it quite personally sometimes.

Matt Edmundson:

No, you do.

Matt Edmundson:

I remember with with Trustpilot when we were, we don't use Trustpilot anymore,

Matt Edmundson:

but when we were, one of the problems that we found was again, it came

Matt Edmundson:

down to sequencing with the emails, I think in some respects, but one of the

Matt Edmundson:

problems we found was people treated Trustpilot like a customer service thing.

Matt Edmundson:

So it's my order's not arrived yet, so I'm going to give you a one star review

Matt Edmundson:

rather than going to customer service.

Matt Edmundson:

Where's my order?

Matt Edmundson:

Do to figure, it's just I think those, how we position those reviews,

Matt Edmundson:

how we, the sequence in which we ask them is actually quite important.

Matt Edmundson:

Because I think people do start to think, say things on there, which is

Matt Edmundson:

that's actually a customer service issue.

Matt Edmundson:

That's not a review issue.

Matt Edmundson:

A review issue is the product was crap, or the product was great

Matt Edmundson:

or a review issue is not, oh I've not got my tracking number yet.

Matt Edmundson:

It's just, it's an interesting one, isn't it?

Ian Hammersley:

It is unfair.

Ian Hammersley:

I think the only thing really you can do if you get negative reviews,

Ian Hammersley:

I agree with you completely about the sequencing, is actually to

Ian Hammersley:

drown the negative in positive.

Ian Hammersley:

And sometimes you'll find facebook, you'll have some negative reviews

Ian Hammersley:

on Google or Facebook and, you want to just get them above four

Ian Hammersley:

because, people will find a way to, to make a comment, a decision.

Ian Hammersley:

And you really just have to try and drown them out and forget about them

Ian Hammersley:

actually, and not take them too seriously.

Ian Hammersley:

The problem is sometimes, obviously we're told as marketers, yes, you have to

Ian Hammersley:

listen to your customers, but actually, you don't want to listen to possibly Mrs.

Ian Hammersley:

Miggings who's saying that, the website was hard to use and you end up putting

Ian Hammersley:

like a big bloody, tick box on the, the, on the checkout that says, Do you

Ian Hammersley:

accept that we may never, if you listen to your customer services to, in some

Ian Hammersley:

businesses have actually moved the e com directors away from the customer service

Ian Hammersley:

team because they're getting really depressed listening to the customer,

Ian Hammersley:

and all I'm saying is that obviously we have to listen to our customers, we need

Ian Hammersley:

to make the website better and answer questions, but the negative customers

Ian Hammersley:

have a disproportionately loud voice.

Ian Hammersley:

Yes they do.

Ian Hammersley:

And it stops you doing.

Ian Hammersley:

Things that are going to encourage growth.

Ian Hammersley:

Your recruitment offer, your retention offer, you just have to accept that

Ian Hammersley:

they're going to be some people that that moan and, but it's, you might've

Ian Hammersley:

had a thousand customers that are really happy and one that's then given you a,

Ian Hammersley:

a negative review and then it's like whole businesses like change their

Ian Hammersley:

entire strategy of one damn review and you're like, why are you doing why would

Matt Edmundson:

you do that?

Matt Edmundson:

Yeah.

Matt Edmundson:

Yeah.

Matt Edmundson:

No it's I'm with you on that.

Matt Edmundson:

I think it's one of those things where you, especially if you care about your

Matt Edmundson:

business and I appreciate this is not true of everybody, but if you care

Matt Edmundson:

deeply about the business you do have a tendency to take those negative reviews

Matt Edmundson:

to heart and you take them personally.

Matt Edmundson:

And I think very simply, you just look at the review and go, is there honestly

Matt Edmundson:

anything that we can learn from this?

Matt Edmundson:

Yes or no.

Matt Edmundson:

Thank you.

Matt Edmundson:

And how can we reach out to this person, offline, not in a in a

Matt Edmundson:

commentary underneath, this sort of whole conversation plays out in the

Matt Edmundson:

review, but how do we reach out to them and just talk to these people

Matt Edmundson:

and just see what's actually going on before we make any crazy decisions,

Ian Hammersley:

yeah, like putting check boxes on the

Ian Hammersley:

basket page and things like that.

Matt Edmundson:

Or just making your terms and conditions so convoluted.

Matt Edmundson:

That was always something that bothered me a little bit, whenever you call a

Matt Edmundson:

company up and they go, yeah, but our terms and conditions clearly state.

Matt Edmundson:

The terms and conditions which I never read before.

Matt Edmundson:

It's not our fault, is it?

Matt Edmundson:

And you yeah, I just wanted you to act like a normal human

Matt Edmundson:

being, if I'm honest with you.

Matt Edmundson:

But apparently you can't cause you've wangled your way out of

Matt Edmundson:

that and your terms and conditions.

Matt Edmundson:

And it's.

Matt Edmundson:

Yeah, I feel like I'm going to get on my soapbox in a minute, Ian,

Matt Edmundson:

so I probably should avoid it.

Matt Edmundson:

We

Ian Hammersley:

have our own e comm brands as well, and we always say, look, just,

Ian Hammersley:

Just give them a, don't even worry about it, just give them a refund, obviously

Ian Hammersley:

it depends on your costs and your margins, etc, but generally, just let it go.

Ian Hammersley:

Just put it down to experience as part of the, the whole, all that ethos of growing

Ian Hammersley:

an e com, like going back to the beta mode that's interesting, and, just generally

Ian Hammersley:

try and stay to the course and keep going.

Ian Hammersley:

Yeah.

Matt Edmundson:

No I'm with you.

Matt Edmundson:

I'm totally with you.

Matt Edmundson:

Listen, Ian, I'm aware of time and we're just, we are just losing it here.

Matt Edmundson:

Tell me a little bit about the book.

Matt Edmundson:

What I was fascinated with.

Matt Edmundson:

'cause Chloe's is also, if you're not aware, they're listening.

Matt Edmundson:

Chloe does an e-Commerce podcast, Chloe Thomas.

Matt Edmundson:

whIch is also worth checking out, but Chloe's also written a book and I remember

Matt Edmundson:

sitting down with Chloe going, what on earth possessed you to write a book?

Matt Edmundson:

Why would you do that?

Matt Edmundson:

So I'm going to ask you the same question Ian why and what

Matt Edmundson:

was that whole journey like?

Ian Hammersley:

So the story behind the book, essentially my brother

Ian Hammersley:

and I we've been in e commerce for, we're like, we're veterans now.

Ian Hammersley:

We're like over 25 years.

Ian Hammersley:

And.

Ian Hammersley:

I think going back, quite early on and our focus really has been on

Ian Hammersley:

answering a couple of questions, like two basic questions of e commerce,

Ian Hammersley:

which is why some e commerce businesses scale and some don't like that.

Ian Hammersley:

That was the, that was, and that still is the question that we set ourselves

Ian Hammersley:

every day as we continue to go.

Ian Hammersley:

And the book went into that really what are the.

Ian Hammersley:

What are the successful things that e commerce businesses are doing that

Ian Hammersley:

are growing and what are the ones that are stuck or just can't grow, is it,

Ian Hammersley:

what were they doing, like what was consistent about both groups and that

Ian Hammersley:

sort of, that was a bit of an obsession and it came down to some basic principles

Ian Hammersley:

which we wrote about in the book and yeah, I think really we wrote the book

Ian Hammersley:

probably as A bit of fun really, didn't think it would be, anyone would read

Ian Hammersley:

you think what you're talking about, internally is common sense, but it's only

Ian Hammersley:

because you've been doing it every day.

Ian Hammersley:

You realize actually it's not, but the book was quite a cathartic exercise of it.

Ian Hammersley:

And it really, it goes through the main KPIs that we look at when

Ian Hammersley:

we're running our own e com brands and we, Mark and I, we're probably

Ian Hammersley:

looking at four or five e com.

Ian Hammersley:

We do analytics a day, and we have done for over 20 years, and through sheer,

Ian Hammersley:

certainly no intelligence, but through sheer exposure, you get a very, like

Ian Hammersley:

an unrivaled exposure to thousands, and you then get this sort of, this

Ian Hammersley:

instinctive, and the book really talks about this, and I think the first one

Ian Hammersley:

is really the maths, which is, which.

Ian Hammersley:

unFortunately we can't get away with it.

Ian Hammersley:

I was, I spoke in London the other week and at an event and I told a story

Ian Hammersley:

that I was practicing for this speech and I turned to my, I've got three

Ian Hammersley:

daughters and I turned to my daughters and I said, it's all about the mass.

Ian Hammersley:

And they're like, no it can't be about the mass, take it back.

Ian Hammersley:

And I was like this is a big part of in econ business.

Ian Hammersley:

It was about that, and when we looked at the ones that were scaling, and the

Ian Hammersley:

ones that were getting stuck, a lot of them had the maths on their side,

Ian Hammersley:

so when I say the maths, like we're really talking about margin, life

Ian Hammersley:

to customer value And, they had it.

Ian Hammersley:

And you couldn't call it from the outside.

Ian Hammersley:

I think as an e com professional, if you look at two e com brands, and you

Ian Hammersley:

go that looks really slick, like really good, like beautiful, really well

Ian Hammersley:

executed, great team, great marketing, great positioning, really nice.

Ian Hammersley:

And the other one over here, perhaps a little bit rough and ready.

Ian Hammersley:

And, but you couldn't, you cannot on that basis see which one's going to

Ian Hammersley:

scale, like you can't, you have to go inside and the numbers are the key.

Ian Hammersley:

So story we talk about in the book is there's two, the one on the left that

Ian Hammersley:

looks super slick, that you think is going to scale, actually has low margin.

Ian Hammersley:

Like 30 percent margin, which is pretty tight an average order value of 30

Ian Hammersley:

and a lifetime customer value of one.

Ian Hammersley:

It's not like it's a one gift, one product gift company.

Ian Hammersley:

And you're like that's difficult because you've got so little room to

Ian Hammersley:

play with when it comes to advertising, it's so hard to try to, cause you

Ian Hammersley:

basically, we're at the mercy of.

Ian Hammersley:

The Gorillas, which are Google and Meta, like they're the

Ian Hammersley:

ones that we've got to play.

Ian Hammersley:

We can't say to Google we're only want to give you 50p for a convert.

Ian Hammersley:

They are literally going to dictate how much, you, they will allow

Ian Hammersley:

you to recruit a customer for.

Ian Hammersley:

So we've got to work with them.

Ian Hammersley:

And the other side, that other one is a supplement type.

Ian Hammersley:

Business of collagen type business and they've got margin of 60 percent Average

Ian Hammersley:

order value of 50 and people buy 6 times a year, so over a year That customers

Ian Hammersley:

worth, what, that's 200 or 300, so you can see how much easier it is to

Ian Hammersley:

scale that one because you can really aggressively pull that traffic leaver

Ian Hammersley:

and go for a very low New Customer ROAS.

Ian Hammersley:

Whereas the one on the left, that gifting company, you're

Ian Hammersley:

like, oh my, it's so difficult.

Ian Hammersley:

Yeah, super tough.

Ian Hammersley:

Super tough.

Ian Hammersley:

So the maths, we talk about the maths it's basically the KPIs that we go through

Ian Hammersley:

when we're running our own business.

Ian Hammersley:

Like the, it wouldn't, and we said unexpected KPIs, but

Ian Hammersley:

they're not that unexpected.

Ian Hammersley:

The, the fairly logical ones, but it's a lot of it's telling

Ian Hammersley:

stories of, of how we've.

Ian Hammersley:

How we've, KPIs, like how you prove that, the antibasket rate and bounce

Ian Hammersley:

rate and how it all comes together.

Ian Hammersley:

But we know, at the day, we wrote the book because we enjoyed writing

Ian Hammersley:

it, didn't really think it would be a bestseller, but it, shock, horror,

Ian Hammersley:

people want to hear two, two, two boys from Stoke chatting about...

Ian Hammersley:

Econ.

Matt Edmundson:

I'm always amazed how many people listen to our this podcast.

Matt Edmundson:

I'm a boy from Derby, so not just down the road.

Matt Edmundson:

Ah, we're pretty close.

Matt Edmundson:

And I'm not in Derby now, but you do think, yeah, people actually are

Matt Edmundson:

really interested in this stuff, which is always quite humbling.

Matt Edmundson:

It's but it's lovely.

Matt Edmundson:

So the book is called The Ultimate Guide to E Commerce Growth, Seven

Matt Edmundson:

Unexpected KPIs to Scale an E Commerce Shop to 10, 000, 000 Plus.

Matt Edmundson:

Do you I'm just looking at the picture on your website here.

Matt Edmundson:

Do you change the cover for the U.

Matt Edmundson:

S.

Matt Edmundson:

market?

Matt Edmundson:

So 10, 000, 000 plus?

Matt Edmundson:

Or do you just leave the little pound symbol

Ian Hammersley:

in?

Ian Hammersley:

a Sensible company would, yes.

Ian Hammersley:

I'd be lying if we were that attentive.

Ian Hammersley:

Fair enough.

Ian Hammersley:

That's brilliant.

Ian Hammersley:

The answer is no.

Ian Hammersley:

I'll tell you what's funny about the American market UK.

Ian Hammersley:

It might be doing like a couple of million, something like that.

Ian Hammersley:

In America, that little small niche, is like 10 million and beyond.

Ian Hammersley:

And just the market is so much bigger, the potential, it's hard, it's a

Ian Hammersley:

competitive market, it's harder to crack but boy, if you could actually get in

Ian Hammersley:

and start going, getting some of that market in America, it's a, it's huge.

Ian Hammersley:

We have, we had a one, one.

Ian Hammersley:

We were talking to the other day and he's selling like the ends of hose pipe, like

Ian Hammersley:

hose pipe ends okay, hoses and little ends, and you think, oh, this is a tiny,

Ian Hammersley:

in the UK, it would be like, I don't know, maybe 600, 000 pound turnover,

Ian Hammersley:

maybe that, you 5 million and his nearest competitor, this is purely online, nearest

Ian Hammersley:

competitor online is doing 60 million and the next one is doing 100 million online,

Ian Hammersley:

selling these little ends of these.

Ian Hammersley:

These hosepipes, I'm going to whoa,

Matt Edmundson:

where do I buy those from?

Matt Edmundson:

I'm going to sell those.

Matt Edmundson:

No, it's interesting what you say about the States.

Matt Edmundson:

Our first, our beauty business, which we sold, we weren't

Matt Edmundson:

allowed to sell to the states.

Matt Edmundson:

We only had, we were only allowed to sell in Europe terms and

Matt Edmundson:

conditions of the suppliers.

Matt Edmundson:

We can talk about that another day.

Matt Edmundson:

But our current side at the moment our supplement brand, we

Matt Edmundson:

distribute to the states and it is a massive market for us now.

Matt Edmundson:

Grown at a huge rate and it's.

Matt Edmundson:

It's interesting.

Matt Edmundson:

Australia is also a really interesting market, very up and coming, as is

Matt Edmundson:

New Zealand, where Brother Mark is.

Matt Edmundson:

There's only, the problem is in

Ian Hammersley:

New Zealand, there's only...

Ian Hammersley:

It's only four people, yeah,

Matt Edmundson:

300, 000 sheep, yeah,

Ian Hammersley:

it's like we're laughing because in New Zealand, in order to

Ian Hammersley:

have a big Econ brand in New Zealand, you literally have to get the entire

Ian Hammersley:

New Zealand population to buy from you, yes you do, because there's not enough,

Ian Hammersley:

there's not enough people, so it, but likewise actually competition is a lot

Ian Hammersley:

less, like there isn't as many people there because of the consumers, there's

Matt Edmundson:

not many.

Matt Edmundson:

Very true.

Matt Edmundson:

It is an interesting place for, we do a lot of business in New Zealand to be fair.

Matt Edmundson:

Which is great.

Matt Edmundson:

But no, interesting interesting.

Matt Edmundson:

Listen Ian, I know we could, we're just getting warmed up.

Matt Edmundson:

But if people want to reach out to you, if they want to connect, find out more

Matt Edmundson:

about you, what you guys are doing the podcast, the book, the, cause you guys

Matt Edmundson:

do a membership type thing as well.

Matt Edmundson:

Where do people go find out more about that?

Ian Hammersley:

Yeah, the route most people find us through is either the

Ian Hammersley:

masses of Facebook advertising that we ram down people's throats, though

Ian Hammersley:

essentially if you Google Hammersley Brothers you'll see us in various forms

Ian Hammersley:

and we've got the, we've got the site.

Ian Hammersley:

The podcast is a, is a good gentle place to, to listen to us.

Ian Hammersley:

But the Hammersley Brothers website is where we go.

Ian Hammersley:

And essentially you can either, you can join one of the courses there and

Ian Hammersley:

there's various different courses, trying to, some of them trying to get

Ian Hammersley:

to different levels essentially get, get to 2 million, get to get beyond that.

Ian Hammersley:

There's one that gets to 50k a month.

Ian Hammersley:

Trying to focus on the right levels.

Ian Hammersley:

But yeah, Hammersleybrothers.

Ian Hammersley:

com is probably the best place

Matt Edmundson:

to go.

Matt Edmundson:

Fantastic.

Matt Edmundson:

Fantastic.

Matt Edmundson:

We will of course link to that in the show notes as well, which if you're

Matt Edmundson:

subscribed to the newsletter, we'll be coming their way to your inbox.

Matt Edmundson:

Otherwise, sign up to the newsletter and we'll send it to you automatically.

Matt Edmundson:

Mark, listen.

Matt Edmundson:

Mark, Ian, I was thinking of your brother in New Zealand thank you so

Matt Edmundson:

much for coming on the show, Matt, and genuinely loved the conversation,

Matt Edmundson:

loved your insight, loved the down to earth Stoke manner that's quite

Matt Edmundson:

nice, very refreshing, and yeah, I appreciate Matt, honestly, genuinely

Matt Edmundson:

loved it, and we'll have to do it again.

Ian Hammersley:

Yeah.

Ian Hammersley:

Thanks, Matt.

Matt Edmundson:

It's great.

Matt Edmundson:

Yes.

Matt Edmundson:

Great.

Matt Edmundson:

Thank you for coming on.

Matt Edmundson:

So what a great conversation.

Matt Edmundson:

Huge thanks again to Ian for joining me today.

Matt Edmundson:

Also a big shout out to today's show's sponsor, the e commerce cohort.

Matt Edmundson:

Remember to check out the e commerce cohort at ecommercecohort.

Matt Edmundson:

com and be sure to follow the e commerce podcast wherever you get your

Matt Edmundson:

podcast from because we've got some more great conversations lined up and

Matt Edmundson:

I don't want you to miss any of them.

Matt Edmundson:

Any of them.

Matt Edmundson:

No.

Matt Edmundson:

And of course, if no one has told you yet today, let me be the first

Matt Edmundson:

person to tell you, you are awesome.

Matt Edmundson:

Yes, you are.

Matt Edmundson:

created awesome.

Matt Edmundson:

It's just a burden you have to bear.

Matt Edmundson:

Ian's got to bear it.

Matt Edmundson:

I've got to bear it.

Matt Edmundson:

You've got to bear it as well.

Matt Edmundson:

The e commerce podcast is produced by Aurion Media.

Matt Edmundson:

You can find our entire archive of episodes.

Matt Edmundson:

on your favorite podcast app.

Matt Edmundson:

The team that makes this show possible is the wonderful Sadaf

Matt Edmundson:

Beynon and Tanya Hutsuliak.

Matt Edmundson:

Our theme song was written by Josh Edmundson.

Matt Edmundson:

And as I mentioned, if you would like to read the transcript or show notes, head

Matt Edmundson:

over to the website, ecommercepodcast.

Matt Edmundson:

net.

Matt Edmundson:

So that's it from me.

Matt Edmundson:

That's it from Ian.

Matt Edmundson:

Thank you so much for joining us.

Matt Edmundson:

I'll see you next time.

Matt Edmundson:

Bye for now.

Ian Hammersley:

www.

Ian Hammersley:

crowd.

Ian Hammersley:

church.

Ian Hammersley:

org

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