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Scaling an E- Commerce Business Adil Wali @adilwali August 2012 SpreeConf - Dublin

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The Quick Snapshot

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Winning is about luck.

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I’ve Done a Lot of Shit

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Choose your own adventure!  Features  Merchandising  Business Strategy  Tech Toolkit  Team & Process  Platform Scaling  Fullfillment and Customer Service  Capital Strategy

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Have something worth scaling; Scale it

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Have something worth scaling; Scale it

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A Disruptive Business

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No content

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Customer Acquisition

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Customer Acquisition Customer Lifetime Value

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Customer Acquisition Customer Lifetime Value Unit Economics

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Business Strategy

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Be disruptive about customer acquisition

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Retention doesn’t matter if you have no customers

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= ∞ profit Not all businesses are created equal

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Always Room for Unit Economic Innovation

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Always Room for Unit Economic Innovation

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Always Room for Unit Economic Innovation

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Always Room for Unit Economic Innovation

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# Customers * (LTV – CPA) What is your business worth?

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How many? How much do they cost? How much are they worth? # Customers * (LTV – CPA) What is your business worth?

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Customer Acquisition Customer Lifetime Value Unit Economics

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Customer Acquisition

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Hard to win on paid channels

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Unique Viral Customer Acquisition If Users are Viral, You can Spend more $$$ on Acq.

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Get to Know Your Audience General Search Term

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Get to Know Your Audience General Search Term Specific Search Term

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Lifetime Value

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Lifetime Value and Loyalty

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Lifetime Value and Loyalty

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Lifetime Value and Loyalty

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Lifetime Value and Loyalty

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Personalization Drives LTV

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Personalization Drives LTV Large SKU count

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Personalization Drives LTV Large SKU count Small SKU count

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Features

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You don’t need as many features as you think

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You don’t need as many features as you think

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Merchandizing, Branding, & Curation

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Features magnify products

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No Customer == No Brand

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Win on Curation

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Your Toolkit

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DATA

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Analytics == Part of Daily Life

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Avoid Data #Failure

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When You Scale: Everything Breaks

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Optimize Around Fixing Quickly

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Really. Everything Breaks.

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Really. Everything Breaks. • Infrastructure breaks

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Really. Everything Breaks. • Infrastructure breaks • Process breaks

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Really. Everything Breaks. • Infrastructure breaks • Process breaks • Brand breaks

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Really. Everything Breaks. • Infrastructure breaks • Process breaks • Brand breaks • Customer service breaks

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Really. Everything Breaks. • Infrastructure breaks • Process breaks • Brand breaks • Customer service breaks • Fulfillment breaks

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Avoid Catastrophic Failure

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Don’t Talk About Everything, All The Time!

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It’s Easy to Frankenstein your Brand

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Customer Service is NOT a Cost Center

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Experience is NOT just on the Web

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Capital Strategy

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If You Get It, You Will Spend It (Yes, all of it.)

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It’s the People Behind the Money

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Premature Scaling

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Have something worth scaling; Scale it

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Customers Will Vote with Their Money!

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Thanks! @adilwali | [email protected]