₹4 Lakh In One Day With Indian Dropshipping · Bizathon 10 · EP8

Summary

Episode 8 of the business growth series delves into scaling strategies, emphasizing the importance of handling growth wisely to prevent downfalls. It covers monetization, leveraging WhatsApp for sales, and the significance of numbers in e-commerce. The episode shares insights on ad campaign management, scaling stages, and creative marketing tactics to boost engagement and sales. It also discusses the use of automation and the importance of focusing on delivered sales and cost per purchase for accurate profit assessment.

Takeaways

• 📈 Focus on scaling your business by identifying successful campaigns and increasing their budget, while eliminating those that don't perform well.
• 💰 Understand the importance of cost per purchase (CPP) and how it affects profitability, rather than just looking at the cost per order (CPO).
• 🔑 Emphasize the significance of the first day of stage 3 scaling to determine the profitable scaling level and the maximum cost per order you can afford.
• 🔄 Duplicate successful ad sets and increase their budgets to scale your campaigns, but be prepared to monitor and adjust based on performance.
• ⏰ Be patient and make key decisions about ad set performance after a sufficient period of observation, such as waiting until 2 PM to assess the day's performance.
• 🤔 Consider the importance of engagement in advertising, using strategies like quizzes and curiosity to drive interaction and potentially lower ad costs.
• 📝 Utilize tools and apps for WhatsApp integration to enhance customer communication, both pre and post-sales, and increase sales through broadcasts and automation.
• 🛒 Implement up-sells and scarcity models to increase the average order value (AOV) and create a sense of urgency for customers to make a purchase.
• 📉 Keep an eye on conversion rates and take steps to stabilize or improve them as traffic increases, such as optimizing website speed and product images.
• 🔢 Prioritize understanding the numbers in e-commerce, including the difference between orders and purchases, delivery percentages, and the actual profit margins.
• 📈 Remember that the amount of profit matters more than the profit percentage, especially when scaling up your business operations.

Q & A

What is the main focus of episode 8 of the video series?

The main focus of episode 8 is to teach viewers how to handle business growth, increase it further, avoid downfall, and discuss monetization, WhatsApp strategies, and the importance of numbers in scaling a business.

What is the significance of the 'Four Polo's Open' campaign mentioned in the script?

The 'Four Polo's Open' campaign is significant as it demonstrates the process of scaling an ad set, where the original ad set was paused, duplicated, and the cost of purchase was slightly reduced, indicating a successful scaling strategy.

What does the speaker mean by 'stage 2 scaling'?

'Stage 2 scaling' refers to a phase in the business growth process where the company has already started to grow and is now looking to further increase its growth by optimizing and scaling successful ad sets.

What is the importance of the 'stage 3 scaling' in the business growth strategy?

The importance of 'stage 3 scaling' is that it involves scaling only the winning ad sets from stage 2, ensuring that resources are allocated effectively and that the business can scale profitably by identifying the maximum cost per order it can afford.

How does the speaker suggest optimizing ad creatives during scaling?

The speaker suggests optimizing ad creatives by creating multiple versions and running them side by side, allowing Facebook to determine which ad performs better, and also by engaging users with interactive elements like quizzes to drive engagement and reduce cost per click.

What is the role of WhatsApp in the business scaling process as described in the script?

WhatsApp plays a crucial role in the business scaling process as it serves as a tool for both pre-sales and post-purchase interactions. It allows customers to place orders and ask questions directly, and also enables businesses to send broadcast messages for promotions and discounts to existing customers.

What is the difference between 'cost per order' (CPO) and 'cost per purchase' (CPP)?

The difference between 'cost per order' (CPO) and 'cost per purchase' (CPP) is that CPO refers to the cost incurred for each order placed, while CPP refers to the cost for each actual purchase made, where payment has been received.

Why is the delivery percentage more important than the RTO (Return to Origin) percentage?

The delivery percentage is more important than the RTO percentage because it reflects the actual sales made to customers who have paid for the products. The delivery percentage determines the revenue and profit a business can generate from its sales.

How can businesses improve their conversion rate during scaling?

Businesses can improve their conversion rate during scaling by testing different images, headlines, and copy, optimizing website speed, compressing images, and creating a sense of urgency or scarcity around offers to encourage quick purchases.

What is the significance of the 'average order value' (AOV) in e-commerce?

The 'average order value' (AOV) is significant in e-commerce as it represents the average amount spent by each customer on their first order. A higher AOV can lead to increased revenue and profit, and it's a key metric for assessing the effectiveness of up-sell strategies.

Why should businesses focus on the amount rather than the percentage when scaling?

Businesses should focus on the amount rather than the percentage when scaling because the absolute profit earned is more important than the profit margin. As businesses scale, the percentage may decrease, but the total amount of profit can still be significant, making the focus on amounts more beneficial for assessing the success of scaling efforts.