Algorithm Update: Why Your Ecommerce Shouldn’t Rely Only on Paid Media

Algorithm Update: Why Your Ecommerce Shouldn’t Rely Only on Paid Media

Understand how changing the algorithm can hurt your sponsored link campaigns and see how you can work around this situation.

Among so many difficulties that ecommerce entrepreneurs have in their daily lives, one of them is the total dependence on heavy investments in paid media and sponsored links.

But after all, why is this a difficulty?

Because social networks and search engines always adjust their strategies, through algorithmic changes and updates, to charge more and more for sponsored keywords or ads. To get an idea of ​​how common this is, Google recently made a change to their algorithm and, shortly thereafter, Facebook followed suit.

And what are the consequences of algorithm changes for your business?

  1. Your investment for sponsored ads will have to increase, after all the competition in the first places will be fiercer and the last ads, cheaper, no longer exist;
  2. On Facebook, the reach of your target audience is more restricted;
  3. At Google, as organic results are increasingly disputed, the strategies for producing quality content and correctly applying keyword terms will have to get better and better.

Therefore, when developing your Digital Marketing strategy , don’t be hostage to paid media and sponsored links, as algorithm changes like this are constant.

But then, how to solve this problem?

The answer is simple: conquer and create your own marketing asset, that is, your contact base, through the generation of Leads and relationship with those Leads.

To do this, we have selected some suggestions for marketing actions below:

  • Be sure to invest in sponsored links: they are still the best way for your ecommerce to scale quickly;
  • Create strategies for this investment to become a marketing asset for your business, if your visitor is not going to buy now, use your paid visit to generate a base of contacts;
  • On your website, always give the option to leave the contact for those who are not determined to buy – for example, register for a discount coupon and tips on using products they have in store;
  • Keep a personalized relationship: segment your lists based on the profile and interest of each of your contacts and connect with them through Email Marketing targeted to your characteristics. Email is one of the few relationship channels with your potential customer, don’t burn this channel with campaigns that don’t have a good opening rate result. A great post with tips on this subject is Segmentation: How to generate better results by sending fewer emails.

Below, see how these actions fit into Lead generation and the purchase journey, that is, the path that the Lead needs to take until it reaches the moment when it will decide to buy:

Lead Generation for ecommerce

Whenever we talk to ecommerce owners or marketing managers, we see a certain resistance in talking about indirect conversion, since sales conversion is (and should be) always the focus.

Indirect conversion is any strategy that you use to “provoke” some action in your website visitor if they are not ready to purchase. This action usually has as its main objective the capture of contacts to maintain a relationship, so that there is a break in barriers and you earn the trust of that new user. With email capture you can also bring it back to your website with low investment.

Unlike a physical store, ecommerce does not have that attendant who asks how he can help you, offers tips on which product is best suited for your interest and “convinces” you to buy with him. Therefore, the capture of contact, the personalized relationship and quality is what the role of this seller will play.

Some might say, “Ah! But whoever enters my site is looking for something and has already decided to buy it”. Really? The average conversion rate of Brazilian ecommerces in 2015 was 1.65%, according to a survey by Experian Hitwise.

So, think: at what time of purchase were the other 98.35% of your visits that left without taking any action? Already decided to buy? Or rather, already decided to buy in your store? Probably not. To understand more about the concept of moment of purchase and the importance of working also with indirect conversions, I suggest, in addition to reading the topic below, the post “What is it and what is it for Lead Management” .

Buying Journey in ecommerce

Every user in the purchase process goes through four steps to make the decision. This concept is what we call here in RD the Buyer Journey. The four steps are: Learning and Discovering, Recognizing a Problem, Consideration of the Solution, and Purchasing Decision.

In the post “Buying journey: what it is and its importance for the Digital Marketing strategy” , there is a detailed explanation on the topic. In the case of ecommerce, a practical example of these steps would be:

Learning and Discovery: The visitor enters your site by simply browsing your social network and seeing your ad. He entered because it was an ad for the perfume he usually wears and wanted to see prices and other options he might like, or he searched for some information that his website offers.

Problem recognition: You need to buy a perfume because you discovered that what you have is running out, but you still don’t know which one to buy. Enter the websites to see prices and recommendations for the perfumes you are considering. In this case, the recognition of the problem was caused by an external factor: the perfume you have is almost gone. But the perfume seller website itself can provoke this problem recognition, offering content that awakens the user to the pain he has. For example: Did you know that perfume scents are best recommended for day or night? Know which perfumes we recommend for each shift.

Thus, your visitor discovers that the perfume he has is for the night, and feels the need to buy a lighter scent for the day.

Solution Consideration: If the user already knows which perfume he wants, he starts researching prices, delivery times and reliability of the websites where he can buy. If the first contact with your website is only at this stage, your chances of winning this dispute are greatly reduced, but it is from here that all ecommerces centralize their efforts to attract visitors. That’s why conversion rates drop so much in the Brazilian market – the visitor is searching for a price, whoever gives less wins.

Purchase decision: The user already knows which product to buy and where to buy. If the contact with users only occurs at this stage, few of them will actually convert into a sale on your website – the tendency is for them to buy from a website with which they have had a relationship before.

Sometimes, when the product being marketed matches an impulsive buying profile, this journey can be taken quickly. For complex sales or with higher tickets, the journey is usually longer.

Either way, it’s worth investing in ways to attract for all these steps. Thus, you increase your chances of carrying the user throughout the journey and make him build confidence to buy with you.

The constant change in algorithms is a big challenge for ecommerces. But, as we’ve seen, there are ways to get out of your dependency on sponsored links and get results with lead generation and content production based on your audience’s buying journey.

Therefore, optimize your investments, have your own marketing asset and don’t burn the only relationship channel with generalized emails and no relevant subject for your potential buyer.

Do you have an ecommerce? Have you ever felt the impact of algorithm updates? Do you have alternative plans to get around this challenge? Use the comments below and share your experience with us!

What is the secret of successful startups in Brazil and worldw

Algorithm Update: Why Your Ecommerce Shouldn’t Rely Only on Paid Media

Understand how changing the algorithm can hurt your sponsored link campaigns and see how you can work around this situation.

Among so many difficulties that ecommerce entrepreneurs have in their daily lives, one of them is the total dependence on heavy investments in paid media and sponsored links.

But after all, why is this a difficulty?

Because social networks and search engines always adjust their strategies, through algorithmic changes and updates, to charge more and more for sponsored keywords or ads. To get an idea of ​​how common this is, Google recently made a change to their algorithm and, shortly thereafter, Facebook followed suit.

And what are the consequences of algorithm changes for your business?

  1. Your investment for sponsored ads will have to increase, after all the competition in the first places will be fiercer and the last ads, cheaper, no longer exist;
  2. On Facebook, the reach of your target audience is more restricted;
  3. At Google, as organic results are increasingly disputed, the strategies for producing quality content and correctly applying keyword terms will have to get better and better.

Therefore, when developing your Digital Marketing strategy , don’t be hostage to paid media and sponsored links, as algorithm changes like this are constant.

But then, how to solve this problem?

The answer is simple: conquer and create your own marketing asset, that is, your contact base, through the generation of Leads and relationship with those Leads.

To do this, we have selected some suggestions for marketing actions below:

  • Be sure to invest in sponsored links: they are still the best way for your ecommerce to scale quickly;
  • Create strategies for this investment to become a marketing asset for your business, if your visitor is not going to buy now, use your paid visit to generate a base of contacts;
  • On your website, always give the option to leave the contact for those who are not determined to buy – for example, register for a discount coupon and tips on using products they have in store;
  • Keep a personalized relationship: segment your lists based on the profile and interest of each of your contacts and connect with them through Email Marketing targeted to your characteristics. Email is one of the few relationship channels with your potential customer, don’t burn this channel with campaigns that don’t have a good opening rate result. A great post with tips on this subject is Segmentation: How to generate better results by sending fewer emails.

Below, see how these actions fit into Lead generation and the purchase journey, that is, the path that the Lead needs to take until it reaches the moment when it will decide to buy:

Lead Generation for ecommerce

Whenever we talk to ecommerce owners or marketing managers, we see a certain resistance in talking about indirect conversion, since sales conversion is (and should be) always the focus.

Indirect conversion is any strategy that you use to “provoke” some action in your website visitor if they are not ready to purchase. This action usually has as its main objective the capture of contacts to maintain a relationship, so that there is a break in barriers and you earn the trust of that new user. With email capture you can also bring it back to your website with low investment.

Unlike a physical store, ecommerce does not have that attendant who asks how he can help you, offers tips on which product is best suited for your interest and “convinces” you to buy with him. Therefore, the capture of contact, the personalized relationship and quality is what the role of this seller will play.

Some might say, “Ah! But whoever enters my site is looking for something and has already decided to buy it”. Really? The average conversion rate of Brazilian ecommerces in 2015 was 1.65%, according to a survey by Experian Hitwise.

So, think: at what time of purchase were the other 98.35% of your visits that left without taking any action? Already decided to buy? Or rather, already decided to buy in your store? Probably not. To understand more about the concept of moment of purchase and the importance of working also with indirect conversions, I suggest, in addition to reading the topic below, the post “What is it and what is it for Lead Management” .

Buying Journey in ecommerce

Every user in the purchase process goes through four steps to make the decision. This concept is what we call here in RD the Buyer Journey. The four steps are: Learning and Discovering, Recognizing a Problem, Consideration of the Solution, and Purchasing Decision.

In the post “Buying journey: what it is and its importance for the Digital Marketing strategy” , there is a detailed explanation on the topic. In the case of ecommerce, a practical example of these steps would be:

Learning and Discovery: The visitor enters your site by simply browsing your social network and seeing your ad. He entered because it was an ad for the perfume he usually wears and wanted to see prices and other options he might like, or he searched for some information that his website offers.

Problem recognition: You need to buy a perfume because you discovered that what you have is running out, but you still don’t know which one to buy. Enter the websites to see prices and recommendations for the perfumes you are considering. In this case, the recognition of the problem was caused by an external factor: the perfume you have is almost gone. But the perfume seller website itself can provoke this problem recognition, offering content that awakens the user to the pain he has. For example: Did you know that perfume scents are best recommended for day or night? Know which perfumes we recommend for each shift.

Thus, your visitor discovers that the perfume he has is for the night, and feels the need to buy a lighter scent for the day.

Solution Consideration: If the user already knows which perfume he wants, he starts researching prices, delivery times and reliability of the websites where he can buy. If the first contact with your website is only at this stage, your chances of winning this dispute are greatly reduced, but it is from here that all ecommerces centralize their efforts to attract visitors. That’s why conversion rates drop so much in the Brazilian market – the visitor is searching for a price, whoever gives less wins.

Purchase decision: The user already knows which product to buy and where to buy. If the contact with users only occurs at this stage, few of them will actually convert into a sale on your website – the tendency is for them to buy from a website with which they have had a relationship before.

Sometimes, when the product being marketed matches an impulsive buying profile, this journey can be taken quickly. For complex sales or with higher tickets, the journey is usually longer.

Either way, it’s worth investing in ways to attract for all these steps. Thus, you increase your chances of carrying the user throughout the journey and make him build confidence to buy with you.

The constant change in algorithms is a big challenge for ecommerces. But, as we’ve seen, there are ways to get out of your dependency on sponsored links and get results with lead generation and content production based on your audience’s buying journey.

Therefore, optimize your investments, have your own marketing asset and don’t burn the only relationship channel with generalized emails and no relevant subject for your potential buyer.

Do you have an ecommerce? Have you ever felt the impact of algorithm updates? Do you have alternative plans to get around this challenge? Use the comments below and share your experience with us!

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How to extract lessons from the success journey of the fastest growing startups to create new businesses from scratch?

Every age has its challenges, but it’s easy to see that technology is improving people’s lives. Just look at some successful startups  in Brazil and around the world to see innovative business models, with relaxed environments and a genuine concern to meet the needs of customers.

What makes these companies so special? Why are they able to grow at a fast pace? And how to extract lessons from the success journey of the fastest growing startups to create new businesses from scratch?

Here are some clues.

The District is an independent innovation platform that, in addition to supporting the development of hundreds of startups, produces industry reports such as “Corrida dos Unicórnios”.

Analyzing startups that reached a market value of more than R$1 billion and also those that have great chances of reaching this level, we identified some similarities and patterns that you can see in the text that follows. Enjoy!

Characteristics of companies that rise quickly

Focus on customer pain

Imagine yourself on the streets of San Francisco a few years ago, in that end-of-hours slot. Horns, lots of people on the sidewalks and you needing to take a taxi, but the delay was already causing you anxiety.

Feeling the problem of urban mobility first hand, Uber’s founders decided to create a solution for themselves and thousands of others, who quickly became millions of users.

Do you have Uber or other similar app installed on your smartphone? Chances are pretty good it’s Uber.

This example illustrates well how successful startups were able to interpret a pain that affects many people and, based on that, develop a technological solution whose model can be easily replicated.

The next step is to create a trial version, gathering important data about users’ perceptions. This Minimum Viable Product (MVP) step , or Minimum Viable Product in Portuguese, is when the startup realizes the points of improvement that must be worked on.

All along the journey, people’s needs always come first, which brings us to the next point.

Concern about quality and reputation

As an application’s user base rapidly grows, so do new sticking points. Be they specific characteristics of a particular profile that had not been considered in the initial product or even in relation to the way the startup communicates its proposal.

This close look at customer feedback should go beyond traditional support channels. A good Brazilian example is Nubank, which created an open space for exchanging experiences and clarifying doubts, encouraging community interaction.

On the NuCommunity proprietary platform, any member can create new conversations and interact on existing topics, as long as it always follows the good neighbor policies that the user accepts when signing up.

Many international brands also develop their own communities. The objective is to closely follow the users of your products/services, making them protagonists in the generation of content  and even suggestions for new releases.

Diverse teams and horizontal leadership

Unlike more traditional companies, successful startups strive to maintain a horizontal structure. This means that leaders are constantly developed to encourage the participation of every member of the team, rather than just communicating Board decisions.

This more collaborative and engaging way of working favors a greater sense of responsibility, where everyone is directly committed to the business objectives.

Therefore, when we talk about strong leadership in the context of startups, what is in focus is not hierarchy, but the genuine connection of each leader with their team:

  • promoting autonomy and empowerment at work;
  • valuing diversity and inclusion;
  • reflecting the brand’s purposes beyond marketing.

Using Financing to Expand the Business

Another difference between successful startups in relation to traditional businesses is that, in the latter, there is greater dependence on equity. On the other hand, the investment market in startups had a turnover of more than US$ 700 million in Brazil only in the first half of 2020, according to the study Inside Venture Capital , carried out by the District.

How to explain such expansion in the middle of the pandemic, especially when many of these contributions are made in early stage startups that did not even reach revenue equivalent to what was already invested in them?

For Venture Capital funds, this is where the opportunity lies. They want to participate in the accelerated growth of startups, multiplying the amount contributed several times. This requires an in-depth analysis of the business, the profile of the founders and the market potential that the startup proposes to supply.

In addition to access to capital, startups undergo a real polishing, having the opportunity to rethink products and processes. The comparison with precious stones is not by chance, since in each new round, the level of requirements and competitiveness rises, as it attracts larger contributions.

Innovative environment

Although the movies and series that portray Silicon Valley’s BigTechs have already made colorful offices, with ottomans, pool tables and arcades, famous, it takes a deeper look to understand how the startup environment works in real life.

For those outside the industry, it may seem counterintuitive for people to spend the day having fun and yet companies multiplying their size, displaying balance sheets that are the envy of many businesses with 50 years or more in the market.

Decompression spaces and rituals are just a part of the daily life of successful startups. Flexible hours, freedom to express opinions, absence of dress code attract new talent and favor a culture focused on constant learning.

Unlike traditional companies, startups are encouraged to connect with other ventures in the sector. Thus, professionals who work at different startups come together, form different partnerships and develop skills together. In this sense, it is interesting to connect to an innovation hub such as the District that holds various events with experts.

secret of successful startups

Successful startup cases

With support from major maintainers such as Microsoft, Danone, AstraZeneca, Johnson&Johnson, Bosch, Hospital das Clínicas, among many others, Distrito for Startups has supported the development of the ecosystem.

  • Marketing and sales : dissemination of startups and connection with large companies;
  • Knowledge : training for founders and mentoring with over 200 mentor options;
  • Management : gratuity and discounts on management, marketing and sales tools ;
  • Investment : course on pitch, funding/valuation and connection with funds and investors;
  • Community : physical and digital hubs to connect more than a thousand people in the community;

Thus, many cases of successful startups often sprout in the ecosystem. For example, fintech Neon Payments, which joined as a resident of the District in 2014 and is now approaching the next Brazilian unicorn.

Last year, Neon announced the purchase of Mei Fácil, another startup that had also been a resident. In 2020, information circulated on the market of a new investment, in the order of US$ 300 million, in an investment round led by General Atlantic, with the participation of BlackRock, Vulcan Capital, PayPal Ventures and Endeavor Catalyst, in addition to Monashees and Flourish Ventures, investors from previous rounds.

Do you want to know other cases and always be on top of the best practices of successful startups? Then access the District’s website  and also follow social networks.