Episode 207

Optimizations as a Way of Doing Business

Jon MacDonald
September 28, 2022
SUBSCRIBE: iTunesStitcher

My guest today is a longtime friend and colleague, Jon MacDonald. 

Jon is the CEO and founder of, The Good. He and his team help brands like Nike, Xerox, and The Economist turn more visitors into customers. 

He’s one of the best conversion rate optimization specialists I know.

In this interview, we wanted to go beyond the typical hacks and quick tips and look at principle-based optimization or optimization as a way of doing business. This approach will yield far greater results over the long haul than just trying the CRO-hack “flavor of the day.”

Here’s a look at what we cover: 

  • Why best practices are for beginners and how you should think about CRO in general.
  • What most eComm brand owners forget about the scientific method and why chasing “silver bullets” is killing your results. 
  • New visitors are at your site for two reasons, and it’s not just to hang out or learn all about you.
  • How Jon’s simple yet effective “Trust Trifecta” will help you earn more conversions. 
  • What Kim Kardashian’s assistant can teach you about “surprise and delight” user experiences.
  • How discounting isn’t optimization; it’s margin drain. And what you can do instead of discounting.
  • Plus more!

Jon MacDonald

   - eMail: Jon@TheGood.com

   - LinkedIn

“Opting in to Optimization” by Jon MacDonald

Zipf’s Law

Ryan Deiss

Nik Sharma

Derek Halpern

Truman

MillerKnoll




Transcript:

Brett:

Hello, and welcome to another edition of the eCommerce Evolution podcast. I'm your host, Brett Curry, CEO of G Commerce. And today we're talking about one of the most requested topics that we ever get, and that is optimization, cro, user experience. And so we're talking about the idea of opting in as a, as a brand owner, as an e-commerce store owner to optimization and what that means. Uh, my guest is a longtime friend, friend of the show, personal friend of mine. We've done events together. Uh, John McDonald, he's the founder and CEO of the Good. And, uh, maybe we go back years now, John. We'll have to unpack how long that's been. Uh, but I think that

Jon:

Maybe, maybe we should

Brett:

<laugh>. Maybe we should. Yeah, exactly. Uh, and, and so anyway, we'll, we'll talk more about that in a second. But, but John, welcome to the show. Thanks for coming on and, and how you doing, man?

Speaker 2:

Thanks for having me. Doing great. Uh, excited to be here once again.

Brett:

So, a couple things that, that I'll, I'll point out before we get into the, the meat of this topic. Uh, one of the, uh, last, actually it was the last for sure, big events we did pre pandemic was with you. Uh, we, we got to speak, you and I got to speak at the YouTube LA offices to a room of like 150 e-commerce brand owners. I talked YouTube strategies, you talked optimization and, uh, user experience strategies. It was a ton of fun. It was so successful. The people at Google, our Google rep were like, Hey, you guys gotta do this and we can do this in Chicago. We do this in New York. Like, we're laying all that out. And then of course, uh, the whole world changed and shut down. And now, yeah. Still not doing events at Google. Uh, but anyways, great hanging out with you there. And then you and I also, we share an affinity for basketball. Uh, I think you're much better than I am. You're a lot taller than I am too, which is rare cuz I'm six three, but, uh, you're actually recovering from shoulder surgery right now too.

Speaker 2:

Yeah. Unfortunately. You know, when you are, uh, 40 playing against 25 year olds thinking that you're still in college, all of that, um, it comes with, uh, some, some injuries like

Brett:

Smarter, not harder, John. I think that's the key. There you go. Sure. How well that exists. Uh,

Speaker 2:

Yeah. I need to stop sacrificing my body. Yeah. But, um, but it, I love basketball, as you said, and it's the, it's my meditation, right? It's the one time that I'm thinking about just what's in front of me. I'm not worried about business or anything else. Yeah. And, um, so it's really something I enjoy

Brett:

Doing. It really is great. I love it too. And I, and I get to coach, uh, now I coach, uh, my, my son who's now graduated high school, and I'm about to coach my daughters. And there's something special about you get on the court and that that's the only thing that exists. Just like you said, it's all, it's all that matters in the moment. If you're playing, you're trying to box a guy out and get a rebound, you're trying to make a post move. Or if you're coaching, you're just thinking about the strategy and the next play. And the, you, the, the world outside doesn't exist. And it's kind of a beautiful thing.

Speaker 2:

Yeah, it really is. And um, like I said, I, I call it my meditation, but at the same time, um, it's, it's also how staying shape. And I just loved doing it. And I, I, I'll never stop playing. There's, there's guys out here on the club I play for, There's a team that's, uh, 65 and older. That's awesome. And, um, I'm gonna be one of those guys. I can almost keep,

Brett:

I love it. I love it. 65 still optimizing websites if you choose to, maybe you're just be an investor at that point, <laugh> and, and still pounding it on the basketball court. So I love him, man. Um, well, I always enjoy talking to you. You bring such a fresh perspective. You're really good at what you do. For those that don't know you, you know, you've done optimization work for, for Nike and Xerox and The Economist and lots of other big brands. And you work with up and coming e-commerce brands as well. And we're gonna be diving into to opting and optimization. And by the way, I wanna plug your book real quickly here. It is opting into optimization. I gotta personally signed copy. Uh, highly recommend that you check this out. But dude, you get some amazing people to write endorsements for this book. Uh, Web Smith, uh, from 2:00 PM The newsletter, one of the top newsletters in the e-commerce space. Nick Sharma from Sharma Brands, you got folks from Shopify, uh, really some big names. How, how did you do that? Right? How, like how did you get such big names to endorse the book? Yeah.

Speaker 2:

Uh,

Brett:

Bribe s Bribes and Money, I

Speaker 2:

Would guess. Bribes. Bribes and Money. Yeah, definitely. Um, yeah, you know, doing a lot of the events like we talked, you know, like we've done together. Uh, you just get to know people and, uh, networking, you know, leads to one thing to another. And, and basically we put together a list of, you know, if I could have anybody endorse the book who would be on this list and put a short list together and just started reaching out to people. And darn, every single one of 'em said, Yes, dude.

Brett:

It was awesome. And you can tell they really consumed the book. They think highly of it. They, they, their words were very, uh, powerful. And, and so kudos to you for, for such a great accomplishment because writing a book is painful. Uh, I wouldn't know cause I've done it. I've just talking to people that have, and I've, I've actually almost did one time and I was like, Nah, I'm not, I'm not gonna do this right now. So, uh, kudos to you for doing this. Uh, but let's, let's dive into this topic. So we're looking at optimization as a way of doing business. And so I wanna talk through some of the, the laws of optimization that you give. And I wanna unpack these with you. I think this will be super actionable and helpful and hopefully inspirational as well to inspire folks to get out there and optimize their websites as well. Uh, but one of the, the first things you said and talk about in the book is that, um, best practices are for beginners. Explain what that means, please.

Speaker 2:

Well, okay. In optimization, there are so many of these top 10 lists or checklists or, you know, tricks to do different things to increase your conversion rates. And the problem is that you really need to be creating a culture of research, testing and improvement. And so if you focus just on a list of best practices, it's really not gonna get you that far. Um, you really, you don't know if it's gonna work for your audience. And that's the biggest challenge is brands come to us all the time and say, Hey, you know, I, I tried this list that I read and I went through this whole checklist and, and it really wasn't a meaningful difference. And in fact, I, maybe it hurt me in some areas. And the problem is, is that consumers aren't, you know, they're, you're, you, they're all unique snowflakes, right? <laugh>.

And so if you and I both had e-commerce sites and, you know, very, very likely we're gonna be selling to different personas. We're gonna be selling different products at different price points with different meaningful, um, you know, value to that, that audience. So the problem becomes that if you and I are both trying to do optimize our sites off the same checklist, it's not gonna have a very good effect. So unfortunately, you know, all the articles that are out there around optimization, um, 90% of them are, are phrased around quick wins and they're just, I, I, you know, really wanted to start the book with that law first to set the, the foundation that this is not gonna be a checklist and you're done. Yeah. And I intentionally wrote the book about the theories and the things you needed to understand in order to be successful in eCommerce by optimizing your site. And that this isn't a book you're gonna pick up and just get a checklist and work your way through it. Um, and this is more about how you should be thinking. And if you apply these philosophies and, and these different points, then you should be successful with your site.

Brett:

Yeah. I love this so much. And, and obviously we, we love reading those articles and, and finding quick wins and quick hits. But I'll make an analogy. It's kind of like reading, you know, quick hacks for losing weight or quick hacks for improving your health. And you know, of course there's some things that apply to everybody. Drink more water, exercise, sleep more. But so much of the rest of the health recommendations are very independent on the individual, Right? You can't just say, Hey, all you have to do is play basketball four times a week. Well, that doesn't apply to everybody. Right? Or even food. Like, I've really dug deep into to diet recently. And, and we have a client that helps with these personalized gut health tests. But here's just a quick side note, fun fact, broccoli, you know, the, the well esteemed that everyone believes broccoli is healthy is actually a superfood for less than half the population. For a lot of people, broccoli is not easily digested and it actually can prevent the absorption of other nutrients. So anyway, just a little quick little extra tidbit

Speaker 2:

And this totally makes sense.

Brett:

Yeah.

Speaker 2:

I mean, to carry that another step further, br like how many people lose weight only to put it right back on a few months later? Yeah,

Brett:

Yeah. Right. Cause they're, they're following something that's unnatural for them.

Speaker 2:

Yeah. Yes. They don't have a sustainable process mm-hmm. <affirmative> or a way of thinking. Instead they're just going after those best practices and assuming they're gonna work for them. Yeah. Um, and they might have a short term effect, but it's really not sustainable.

Brett:

Yeah. Yeah. So you are building a successful business to just keep scaling and re the profits from or to scale and sell, which a lot of my friends and own e-commerce brands are doing that. Either way you need to adopt this, uh, optimization as a practice and as a way of doing business. So best practices, best practices only, not going deeper than that, that's for beginners. Love that law. Fully agree. So, awesome. Uh, next one. Uh, this talking about scientific method and, and so, uh, you talk about, hey, it's the scientific method here and we're not looking for silver bullets. So I'm assuming these two are a little bit related, but un unpack that just a little bit.

Speaker 2:

Yeah. This is, uh, as you said, it's a little bit related. It's a follow up to that in the sense that, you know, a lot of people apply these checklists and they assume overnight that all is well, their site is as optimized as it can get. They're gonna start seeing these good results. But unfortunately, there's no overnight success when it comes to optimization. Um, it takes time to put that culture in place as I talked about, but also, you really just need to learn how to get 1% better every day. Yeah. And if you just focus on that, then you will see big results over time. And what's gonna really happen here is by just focusing on, on tweaking one little thing of your site every day. Or even if you can't, you don't have the resources to do it daily, think weekly or do a sprint once a month.

Something of that sort where you're continually iterating. And the whole thing about this is really that it's a compounding effect, very much like a scientific process where you're looking for small gains that compound over time. And that is the formula that's gonna show sustained growth. Um, yes, maybe there's one or two changes that can help you leap, but they're all not gonna, not, you know, all of them are not gonna do that. Right. So yeah. Really want to be looking at this as how do I get 1% better every day and just make those incremental improvements. And if you have that mindset, you will win.

Brett:

I love that. And, and it reminds me of the book Atomic Habits by James Clear. Mm-hmm. <affirmative>, and that's what he talks about, you know, from a personal growth and development standpoint of getting 1% better every day, and at the end of the year you're like 300% better, right? And, and right. And so, uh, but, but also I like the, the idea that we're not chasing big wins per se. We're gonna find some, right? There's gonna be some tweaks you make to your cart or changes you make that improve the, the site, uh, page load speed, you know, then they will potentially cause a nice bump in conversion rates. But if you focus more on the consistency of little improvements and those big wins will come as well, if you chase big wins, you may be bouncing around all over the place mm-hmm. <affirmative> and end up frustrated and not really get the, the results that you want to get. So little improvements. And I've heard the, and I love the quote that says, you know, we often overestimate what we can do in a day, but we underestimate what we can do in a year. Right? So these little changes compound over time.

Speaker 2:

Yeah. It's, it's, uh, this kind of goes hand in hand with, um, something called Zs Law, Z I P F and Zips Law, he was a, a linguist actually that found that the, uh, top, uh, 1% of words that are used, um, it, it's true across all writing. So there's a, in the English language, there's 1% of words that are, or that gonna be the top 1% use no matter what book you open in English language. And his whole thing is if you focus on those 1% of areas, you improve that 1% of area, everything else will fall in line eventually. And so he took that law that he saw in writing and started applying it to other, uh, practices in his life, and he found that, hey, I just have to improve the top 1%, and if I improve the top 1% and start focusing on that, the rest of the, uh, 99% of my life will follow along and get better as well. So when he starts editing books, he was looking, he, Okay, I'm gonna focus on 1% of this book that I know I can get better. And then,

Brett:

So, so in the writing practices, looking at these, the 1% of words that are used over and over again, identifying those and then changing those, is that kind of what he's talking about for writing? Yeah,

Speaker 2:

Exactly. Picking

Brett:

A more interesting

Speaker 2:

Word. Mm-hmm. <affirmative>. Exactly. And that alone will improve your writing. Um, and so it's really, you know, there's a whole bunch of laws like this, the 80 20 principle, right? A whole bunch of these types of things, and everybody starts seeing these patterns around the same time. Um, and Z took a really interesting turn on it though. It's just like, Hey, you know what? I'm gonna focus on on improving this 1% and then everything else will follow along. Nice. Um, so yeah, it's

Brett:

A lot. So that, that's a really interesting concept. So, so that's something that's published. There's the, the 1% of the English language that's used over and over again, so that's identifiable. How do you make that comparison then to an e-commerce store? So how does an e-commerce store owner unpack or discover what's their 1%? What do they need to focus on first? Yeah. That's then gonna lead to the, the bigger improvements over time.

Speaker 2:

Yeah. So the first thing you need to do is understand what are is that 1% for your site, for all of e-commerce, it's pretty easy. It's that path to purchase that the vast majority of your visitors are gonna land on, right? So from a homepage to a category to a PDP to your checkout, and if you can improve, just focus on your homepage, how can you improve getting people to the next step in the funnel? Don't worry about anything else on your site, just focus on that one little piece. How do you get people to the next step in the funnel once they're there on that category page? Let's, as keeping with that example, how do you get people to find the right category of products for them? Right? So what I'm trying to do here is, is think about breaking down these large complex problems of, okay, our conversion rate's not great, we need to fix our conversion rate.

Well, that's a massive problem when you really sit down and think about it could be a lot of different things. So instead start looking for small clues of what's the, where are people dropping off in your funnel? And then just work on fixing that one metric. And that may take several months to, to really get some improvement on and sustain improvement. But so many people get really overwhelmed and they try to optimize their entire site and they're, they're just throwing tests at the wall and they're saying, I'm gonna run ab test over here and over here, and I'm gonna improve the checkout and I'm gonna improve, you know, the landing pages. And, and then by the end of it, they have no idea what worked and what didn't because Exactly. Or what cause

Brett:

Them to move backwards or Right. Yeah. Yeah. It's kinda like, kinda the idea of looking at your whole business and saying, I need to improve operations. I'm gonna just gonna do everything. I'm gonna, you know, make all the changes rather than focus on one thing. Like, like we need to improve the calendar, clear the calendar for the team or whatever. So mm-hmm. <affirmative>, no more wasted meetings and let's make meetings, uh, optional for some people, you know, you know what I mean? Like, focus on one thing, get that better, then move on to the next thing. It may feel slower, but it's actually faster in the long run. Yeah. It's really the only thing that works, right?

Speaker 2:

Yeah. Yeah. And all the principles that we talked about are, are proved that in a scientific method.

Brett:

Yeah. Love it. So, so next thing is, uh, you talk about the fact that that new visitors to your site are there for really just one of two reasons. Can you unpack those, talk about those a little bit?

Speaker 2:

Yeah. This one is interesting because so many brands try to do so much with their website that they lose focus, they lose sight of the fact that customers are only at your site, um, for two reasons. And the first is because something led them to your site then to help them think that you can solve their pain or their need. Mm-hmm. <affirmative>, right? Ver you're not Facebook people aren't there to hang out, right? Kill time, they're at your site, especially in ACOM site because they have a pain or in need and something led them to believe that your product or service can solve their pain or need. So the first reason they're at your site is to solve their pain or need. And second, once they've determined that you can help them, they're there to convert as quickly and easily as possible. So, two reasons I think you can help me.

And then once that's been proven, I want to, I want to convert as quickly and easily as possible and move on from there. And that's really where most brands lose sight of it and start treating their site as a marketing tool where they really start to, um, wanna tell a massive brand story, which I think the brand story's important, don't get me wrong, but it needs to be weaved into that conversion journey, Right? Should not be the only thing there. Um, so really how can you just eliminate the barriers to people understanding if you are gonna solve their pain or need, and then help 'em convert. You both want the same outcome, right? Consumers want to get onto your site, solve their problem, and then leave. And you want them to convert as well. So helping them by having a better experience, better content, uh, easier path to conversion, everybody wins.

Brett:

So, yeah. So how do, how do you first cause someone to feel, trust or confidence that hey, I'm in the right place and this need I'm trying to fulfill or this problem I'm trying to solve. I really do think you can help with that and then yeah, make it quick, easy, smooth, frictionless, all of those things once someone does decide. I love that. And so, uh, let's talk about the trust element first. Cuz another thing you say that totally ties into this is if you wanna increase conversions, increase trust. Yes. So talk about that a little bit.

Speaker 2:

Well, I, you know, the, the best thing about this is that increasing trust is, can be one of the most effective ways to improve your, your conversion rate. And it's something that a lot of brands just continually overlook. And, um, I think that, you know, it's an easy fix quite honestly. Um, most brands, the problem that they, that they do is, is they're continuing to market at consumers instead of, um, understanding again what the pain points are and then saying, you know what? Like, buy it or don't, We're here to make sure it's the right fit for you instead of that hard sell. Right? And there's easy ways to, to increase trust beyond that, I mean, just look at your footer. Um, most footers don't have what we call the trust trifecta. The trust trifecta is should, you should have in your footer a, uh, full address, physical address, um, a phone number and an email address.

And if you have those three, we have done lots and lots of different types of testing on this. If you have those three, the trust factor goes up dramatically. And that's only because the consumer who has never heard of you before, by the way, most likely they don't know who you are as a brand. So they don't have any brand association of trust. Um, maybe they saw an ad, they clicked on it cuz they thought it could help them, uh, or they got it, you know, saw an Instagram from a friend, something of that sort, which is some social proof, right? Yep, yep. But really when they get there, they just want to know, if I have an issue, I can get ahold of you. And so that's a great way to do it. Now we talked, I I mentioned social proof that really falls into this as well. Um, you need to have things like reviews. You need to have an understanding of, um, you know, what types of, um, testimonials are gonna be most important and most effective. All of those combined to bring trust. But the easiest way to increase trust is to just help solve that pain or need and make it very, very easy to do. And then can, most consumers will look at that and say, You know what? They care about my experience on this site. They're making it easy for me. And that increases trust dramatically.

Brett:

Yeah. I love this so much. And, and I'll mention one, one of my favorite marketing quotes, uh, comes from Ryan Dice and, and he talks about the fact that good marketing is a transfer of confidence mm-hmm. <affirmative>, and I think in this case, the, these two concepts of confidence and trust are, are related where, you know, we have full confidence and trust in our brand and our products, but we have to transfer that to the, the customer. Yeah. So what are the clearest, easiest ways to do that? We often overlook it, right? That trust trifecta of physical address, email address, and phone number in the, in the footer. That's simple, right? And, and yes, you may get some more spam and other things if you put your email address there, but it's gonna be worth it with the, with your conversion rate increase. And so looking at something as simple as that, and then, yeah, I, I love examples when we're looking at social proof of, you know, I've seen this with, with fashion and apparel brands.

I've seen this with, with skincare, I've seen it with supplements where, you know, you, you bring in those, those pictures that you can tell a real customer took mm-hmm. <affirmative> of, you know, them holding the protein powder them, you know, applying the, the, the skincare or, or wearing the sunglasses or wearing the, the ring or whatever. That type of stuff really works well. And I, and I think part of what you just said is understanding for my buyer, what do they need to see and what kind of proof do they need mm-hmm. <affirmative>, uh, to really feel good about that. So, so thoughts on how you decide what types of social proof for what, what trust factors your brand needs?

Speaker 2:

Yeah. The easiest way to do this is, um, talk to your consumers. So user testing, uh, is the easiest way to do this, to dive a little deeper where you send people to the site who match your ideal customer profiles, you ask them to complete some tasks along that journey and record their screen and their audio. And there's tons and tons of tool sets out there that will help you do this. But you could just set up a zoom chat with somebody Yeah. And turn off your camera so you're not distracting. I'm asking 'em to share their, their screen and then just say, You know what, I, I'm gonna ask you to do a couple of things and step away and I'm not gonna help you. Um, and I want you to just talk through what you're thinking. Yeah. And you

Brett:

Will. So powerful. Cause then you get to watch, you get to watch what they're doing, you get to see their eyes a little bit, but then you also get to hear, Yeah, yeah. I'm frustrated. Oh, why, why am I doing this? Where is this? What am I'm, I'm trying to do this. I can't find it. Yeah,

Speaker 2:

Exactly.

Brett:

That's super powerful. Nice. Uh, yeah. I love that. And, and then as you kind of hear those things, you're gonna make it simpler. Um, are, are you looking for specific comments around trust then that might key you in on, hey, we need a little more of this element or that element, or what are you listening for to kind of understand, um, what you're missing?

Speaker 2:

Usually we're listening for what are their pain points that have not been addressed mm-hmm. <affirmative>. And can we address that through social proof? So for instance, um, a big one we see quite often is a lot of people don't understand when you say it's like, this is eight ounces of protein powder or 32 ounces of protein powder. Right? Most people would not be able to say what eight ounces actually looks like. Right. Um, right. So when you do social proof, that's why you mentioned people holding up the, the container because it's super easy then to have that association of, oh, that container next to a person looks this big, I get how much I'm getting. So there's little things like that that you can do where you're, you're essentially, um, the only two birds with one stone, if you will. Right. Because you're saying, Okay, now I got social proof of people out here who are actual customers who are willing to post a review.

And by the way, I also have a picture of them holding the product, which is really helpful in understanding how much is the quantity I'm buying. Um, so we're looking for, for questions that are unanswered in that user testing. So if somebody says, I just don't know what it ounces is for protein powder, how much am I gonna use? They say, put two scoops in every day. What is two scoops? How long is it gonna last me? Yeah. These are all questions that can easily be answered, and you can have an aspect of social proof to that, um, if you want, but answer again, answering those questions immediately increases trust because they know, oh, the, you know, other consumers have had this question and they've answered 'em, they must have been around for a little bit. They're not new to this and they care about helping me. They're not trying to trick me into buying the size that, you know, it's only gonna last me two weeks. Or, you know, buying way more because they know I'm never coming back to repeat order. Right. Right.

Brett:

Um, so I love that, that, you know, the fact that, hey, just seeing a customer, a real customer answer a question, we can look at that customer and say, That person looks like me, or, or I can tell about what they said they value the same things that, that I value in a, a protein shake. And, and then yeah, it gets, it gets the question answered that you're looking, uh, for an answer to. And, and so, uh, yeah, it's one of those things where, yeah, you wonder like, Hey, if I drink this shake, does it really replace a meal or does it not replace a meal? Well, this person just said, you know, I I drink it in the morning and then I'm, I, I don't need to eat again until 2:00 PM or whatever, you know, or, or I, I buy one bag once a month, that's all I need and couldn't be happier.

Or will it be chalky, you know, hey, I drink this and it's smooth as could be it's best protein powder I've ever, ever had. You know, things like that. So yeah. Looking for what are those, what are those objections or pain points questions that are lingering? And then are those best answered through social proof? Really, really powerful. Love that. Yeah. That's awesome. Uh, so one thing you talk about, and then also one thing Nick Sharma talks about in the forward of your book is, uh, rolling out the red carpet, the Kim card dashing red carpet treatment for your shoppers. What does that look like? How do we make our, our customers feel like Kim Kardashian?

Speaker 2:

Yeah. Um, well, I think that the first thing is, is in anticipation of what people need mm-hmm. <affirmative>. And you know, what Nick is getting at, in, in that, when he wrote the intro for the book, which is where, uh, you're pulling that from, you know, what Nick is really saying here is that it's no longer okay to just put up a e-commerce website and expect that people are gonna buy mm-hmm. <affirmative> mm-hmm. <affirmative>, you now have to anticipate what people are gonna need and want, and you have to re-answer questions. So he gives the example of, hey, you, you know, if you're her personal assistant and she's on the red carpet and she's hungry and you didn't bring an apple to give her, or whatever it might be, it was a snack. Right? You're gonna get fired because your whole job is to anticipate her needs and then deliver 'em.

And that keeps her happy. Well, it's the same thing with your customers, where you really need to be able to anticipate what's that experience going to be. And one of the things I say quite often is that, um, most brands, and especially in e-commerce are, they're stuck inside the jar and they have a really hard time reading the label from inside the jar. They know their e-commerce website so well, they know products so well that when they go to their site, all their questions are answered because they already know all the answers. But a Nuta file customer who comes in and has no understanding of how to make their way through the site, uh, how to find the right product for them, you know, we just talked about, um, you know, ways that you can understand and increase trust by, you know, anticipating what their questions are gonna be and answering those upfront. That's a big challenge that a lot of brands never tackle. And so what happens is that, um, that consumer comes in and they're not treated like Kim Kardashian on the red carpet. Instead they're treated like just anybody walking and off the street and you're not helping them to complete the order, and it ends up reducing conversions pretty dramatically.

Brett:

Yeah. And I like this analogy of thinking like an assistant, right? So that, that's really what we're doing, right? We're we're guiding someone, we're helping them, we're, we're Sherpa along the, the journey, right. To, to reach their goals and get what they want to get. And, and yeah. You know what a, what a bad guide or, or an assistant who's not very helpful, what they would do is say, Well, you didn't tell me you needed that. Right? I'll get you if you asked me to do it. That's not, that's not good enough. That's not useful. Like you need to anticipate. No, the Kim Kardashian's gonna be hungry. Right. Those, those flat, those flashing lights are bright. It's tough to wear a tight dress and walk down the, the the red carpet. Right. You gotta gotta know, she's gonna be tired, she's gonna need some sugar, she's gonna need some, you know, an apple or whatever. So I, I love that analogy.

Speaker 2:

And, and the only way to know that is experience. Yes.

Brett:

Right?

Speaker 2:

Yeah. And so going back to talking to your consumers, you will learn what are their challenges. Yeah. And then you can address those on the site where I guarantee you, you know, every new assistant has no clue that somebody's gonna get hungry on the red carpet. Yeah. They just don't think about it. Right. They're out there worried about, they've been on the red

Brett:

Carpet before. Right.

Speaker 2:

Yeah. <laugh>. So, Right. So as they go through that and learn, they, they can start to anticipate. And it's the same thing for your e-commerce website, which is you need to be able to anticipate what people want. And the best way to do that is to ask them and to, to gain that experience. User testing, talking to consumers, um, trying AB tests out, uh, you know, there's a lot of things you can do there. And uh, and that was really next point.

Brett:

Yeah. Love that. Uh, my, my next question, I know this could be misleading, and so that there may be some caveats we give here, but, you know, I think that the best way to learn and do this process is to ask your users and to watch your users and to see what feedback they give. I think it's also instructive and helpful to look at what other successful companies are doing and, and try to learn something from it. I think it's key there to understand the underlying principles behind why people are doing what they're doing. Mm-hmm. <affirmative>, it's also pretty important to understand that you're not Amazon, so you can't just copy Amazon what they do Exactly. Right. Things like that. But who, what companies do you feel like in the e-commerce space really get this process right, that we could pay attention to and potentially learn from?

Speaker 2:

Well, I think, you know, the reality is, is you really should not be copying from, from anybody. Mm-hmm. <affirmative>, quite honestly. Um, are there brands that do it right? Yeah. There are brands who do specific things, right. You know, uh, where, you know, you mentioned Amazon, I mean, they've got checkout down to a science mm-hmm. <affirmative>, um, you know, so that's a great place to, to look at. But if you look at their product detail pages, I, I personally don't think they, they work extremely well. We've done user testing on 'em and they're, you know, so, but a lot of brands will go and try to just copy

Brett:

Using their overwhelming as like a million things. And, and not only are the pages overwhelming, but there's like 15 other different options, things you can buy. Now, I know Amazon has tested it and it works in their own way, but this would be like, Hey, I wanna open up a boutique and so I'm gonna go shop at Walmart and, and learn from Walmart, you know, at Walmart. So that's probably not ideal for you.

Speaker 2:

No. And this is why I think that copying your competitors is a distraction. Yeah. Yeah. And there's a handful of things here that, that really feed into that. The first is you don't know if you're cheating off of the valedictorian or the funky Yeah. <laugh>, you, you don't know. You don't have their data. Right. Right. They may be

Brett:

Test and, and what you're copying is losing right now, you don't know, know that. Yeah,

Speaker 2:

A hundred percent. That's the, that's the next thing. You could be opted into a test. They could be running a ab or a multivariate test or something else that they don't even know if it's gonna work. Mm-hmm. <affirmative> and they're like, Hey, let's give this a try. And you got opted in. You're like, Oh, wow, they're doing that. They must know what they're doing cuz they're so much bigger than us, or, you know, they're taking our customers or whatever, We should probably do that too. And then the test fails for them, they take it down a week later or whatever, and you're stuck with the, with the negatives. Well, they're moving on with the learnings. Right. So, uh, the caution here is really that if you talk to your own customers, and if you focus on your site experience in improving that 1% every day, you will win and you'll sprint past the, uh, the competitors.

You know, think about this way, there's a reason why horse races wear blinders. And if you look at, there's a graphic that opens, each of these chapters you've probably seen at this chapter has, um, a graphic of, uh, horses racing with, uh, you know, and the, there's a gentleman on a laptop, uh, the jockey on top of the one, his, him and the the race horse have blinders on. And it really is true that if you just run your race straight down to where you want to go, you're gonna get there much faster than if you start jogging all over the place, back and forth trying to copy your competitors. So it just ends up really delaying you and you get off track. Um, and so I'm a firm believer that yes, you could look at, you know, your comp your competition for inspiration at times, but don't just blindly copy them. And at the very least, very least run an a test, uh, with that concept and make it your own. Right. That's, that's the other thing. So many brands will try to just replicate without making it their own. And it doesn't even fit into their brand or their, their consumers wouldn't even want that. Um, so

Brett:

Yeah, I really, I like this, I like this philosophy where, and, and you could, you could kinda look at this is kinda like the comparison game, right? Of Oh wow, this company's way bigger than mine. I need to grow too. Or Wow, yeah, this person on social media's waking, making way more money than me, seemingly they've got a nicer car or whatever. I need to make more money. And, and so we can, we could be misled or pulled along to, to bounce back and forth on different things, uh, which really won't lead to better results or, or more happiness. I do like to look at what other companies that I know are doing well and are successful. I like to pay attention cuz there's probably something I can learn. But it's one of those things where you have to look at, at elements of a website that really speak to you or that, that you notice are different and ask why. Like, why are they doing this? Yeah. Why could this be useful? How could this be useful? And then to your point, test, right? If it is something that you're like, Whoa, this, this was just like a surprise and delight for me as I was shopping, shopping this site, this could be good for my users. That should lead to a test. Not, uh, let's just do it, you know, type of thing.

Speaker 2:

Yeah. Well, and one of the things that a lot of brands don't even think about doing is running user tests on your competitor's sites. So you could do user testing on your own site, but why not also send some of those users to your competitors and ask them to tell you about that experience? And, uh, it's a, you know, that's better than anything else. You're gonna get, you

Brett:

Know, way better than your own perspective of shopping your competitor's site and do that too. But yeah, the, the only perspective that really matters here is your target market. You know, the, the marketplace is all that matters. So that's a great idea. Have, have your customers or, or users test your competitor's website. That's, that's cool. That's worth the price of mission right there, <laugh>. That's really good. I like it. I like it, man. Uh, awesome. So, uh, this is another point that you and I definitely agree on, and that is discounting is not optimization, it's really just margin drain. So unpack that a little bit, explain your perspective on that.

Speaker 2:

Well, so many brands are on this hamster wheel of discounting and they just can't get off of it because they're afraid that once they turn off these sales or the discounts, and we can talk about ways people use that, that numbers are gonna plummet. Mm-hmm. <affirmative>. Um, and the challenge here is that once you have done that, you've created a discount customer for life. Mm-hmm. <affirmative>, Right? So let's, let's just talk about the worst offender email up that offers a discount for in exchange for an email. What 80% of brands do this now? Um, I think start less. Yeah. I see brands doing it less and less, but the reality here is that you are telling consumers as soon as they got to your site and you throw that pop up in their face, that your products aren't worth what you charge for, they're worth 10, 15, 20% less. You saying right off the bat, pay me 20% less and just gimme your email address. And the challenge with that is that you are going to eventually be stuck on this hamster wheel of sales that you're never gonna be able to get off of and consumers are never gonna wanna pay full price again. And that just eats your margins away. And you are working really hard to become Walmart basically without the volume and the scale. Right. And VO Walmart only works because of the volume and scale. Exactly. And so

Brett:

Volume scale and the way, the way they, they treat vendors and the way they negotiate on the back end and all those terms,

Speaker 2:

Which they have to do. If

Brett:

You're not operating like that, you're not gonna be able to compete on on

Speaker 2:

Price for sure. Exactly. Exactly. So that's where, you know, I'm a big fan of, um, instead of taking something away, always adding something. So what do I mean by that? Instead of a discount of a dollar or percentage off, give something offer free shipping off that first order or a free gift with purchase or, you know, bundles Right? Is a great way to do a discount. What's not psychologically a discount. You're saying buy these three items together and it costs less than if you bought them individually. So there's a whole bunch of things like that that you can do that will very easily offer value instead of a discount. And that's what I would recommend doing. Now what a 10% off coupon cost you the same as free shipping? It may, but in the consumer's eyes, they're getting something added on and they're not looking at you as the discount brand. They're looking at, Oh wow, that's a surprise and delight. I'm getting something extra here. Um, and that's a great way to, you know, I digress for a second. A great way to increase your average order value by saying, Hey, free shipping over $50 and your average order is at 45. Right. Watch that average order value go up pretty quickly.

Brett:

Yeah, yeah, it will. Usually there's a sweet spot there, but yeah, usually raising that, uh, threshold, the free shipping threshold is gonna raise your average order value. Yeah, I love this. I know, uh, my, my friend Derek Halpern runs, uh, Truvan and, uh, used to run a site called Social Triggers. He talks about this a lot. They sell premium products at Truvan and, uh, doesn't wanna do discounts and so never does 'em. Yeah. Uh, but they will do premium gifts and really cool gifts. Like they've done these really nice metal straws, they go along with the protein powder, or they did these really cool tote bags around the holidays that have truvan on it, but they're, they're artful and they look like a, you know, bag you'd pay 40 bucks for. And so he includes that, uh, free when you, when you, you know, make a purchase mm-hmm.

<affirmative>. And so it adds value. It ends up costing him about the same as doing like a 15% discount, but it doesn't cheapen the product at all. Right. It actually deepens that relationship with the customer, which is really powerful. Um, there are a few exceptions here that I found that I think work, I be curious your, your take on these. Uh, we've worked with several brands that sell a consumable, whether that's like a fragrance or, um, uh, you know, supplement or protein shakes, things like that, that will offer something in the beginning where they're saying, Hey, we're so confident gonna fall in love with this, that this is a little sample pack. Right? So first shakes on whatever, you know, little sample pack, all you pay is shipping, give that a try. We, we have seen a lot of success with that, um, through YouTube by driving people to that kind of offer. But curious what your thoughts are there, like a sampling type offer? Do you feel like that cheapens it or do you feel like that's different enough where it's like, Hey, just give this, give this a shot. We'll buy your first drink type of thing. Yeah.

Speaker 2:

That works extremely well. And we've done it with, um, paint companies. We've worked with a handful of paint, um, brands that, you know, um, how else are you gonna get to understand what that, what that color looks like in your house? Right? Yeah. You gotta send the sample, right. Yeah. And, um, that works extremely well. We've done it with, um, Miller Noll who makes, you know, um, Herman Miller and Noll make really high end, uh, usually kind of contemporary modern furniture, uh, mid-century modern and fabric samples. Yeah. Um, we optimized, uh, Noel's website all around fabric samples and how to get those in people's hands because we did some research and we found that people who had ordered fabric samples converted about six to eight times more frequently than those who did not.

Brett:

And my guess is they potentially bought more, right? Because they were confident after seeing and holding the sample Now that may be confident to buy more products. Right. And so that AOV potentially could go up.

Speaker 2:

Exactly. So I, I'm all two thumbs up on that. I think sampling is not a discount. Um, sampling is, um, something that doesn't necessarily cheap in our brand in the same way that, um, giving the discount would. So

Brett:

Yeah, it's more of that. And we talked about the transfer of confidence. It's a way of saying, Hey, we're really confident in this, but we want you to be confident too. So it's a try sample, you

Speaker 2:

Know, But again, the best way to look at this, you're giving something, you're not taking something

Brett:

This. Yes. Yes.

Speaker 2:

So that's always the rule that I have. Are you giving something or are you trying to take something away?

Brett:

Yep. So what's, what's your take? How would you approach something like Black Friday, right? Mm-hmm. <affirmative>, So everyone does discounts on Black Friday. People are addicted to it. What's your take on that? How do you advise your clients around Black Friday? Yeah. Or Cyber Five?

Speaker 2:

Yeah. Cyber five I think is, um, you know, again, it's a easy button to discount during those days. Um, you could be doing exclusive products that you've held until then. Uh, you could be doing exclusive bundles. You, uh, a lot of free gift with purchase, right? I can get, you know, hey, if I buy this product, I get another small thing with it that I can then give as part of that gift. So really I'm giving more than what I thought I would be. Um, that works extremely well. Um, this is where shipping can really come in, upgrading people shipping over holidays, uh, especially as you get closer and closer to the, to the deadlines. Um, that's a big one. Um, you know, I think there's a whole article up on the good.com with, I don't know, we have like 60 to 80 we keep adding to this list, but, um, things that are not discounts in ways that you can run promotions.

And, um, so if you're interested, there's a huge list up there. But the reality is that the easy button is to just do a discount for those. If you give it a day and do some brainstorming, you'll come up with a lot more options. And, you know, that's really where you're gonna differentiate yourself from everybody else. Because I don't know about you, but my inbox over Cyber five is just all discount emails. It's everybody saying, Hey, 50% off today only. Right? And they're trying to apply time and pressure, and all the typical sales tactics have been used for, for centuries, where really what I'm looking for is something different. Because if I was gonna buy that brand, I was gonna buy it anyways, quite honestly. But now if I, you can surprise and delight me with something extra, um, during the holidays, I'm likely to, to be more excited about it.

Brett:

Super interesting. Yeah, I'll definitely link to that, that article in the show notes. So check that out. So, and, and what's the title of that article again? Or, or

Speaker 2:

Roughly It's some, it's, uh, I forget what the number is now, but I'll send it to you. It's a just, uh, go to the good.com/insights. There's a search box type in discounting or discounts, um, or promotions, and you'll get, you'll find the article pretty quickly.

Brett:

Awesome. Love that. One, one brand, uh, Ezra Firestone, Boom by Cindy Joseph. Mm-hmm. <affirmative>, one, one thing that they do that's really interesting is they do no discounts except for Black Friday, and they do a 10% discount. But the way they promote it, and this was interesting, and I I think worth noting, is they talk about this is the only discount of the year. Mm-hmm. <affirmative>, like, this is the only time we do it, There won't be another mm-hmm. <affirmative>, there won't be anything else, but we just do this for our customers anyway. Yeah. So I think there, there's some things you could do like that, and it's a 10% discount, right? Yeah. Um, but that's all they do one time a year. So that, that kind,

Speaker 2:

It's, it's really great when you can tag that to something meaningful for your brand. So, uh, we worked with for years with, uh, Bear Performance Nutrition. So this gentleman, Nick Bear, b a r e, um, he's an fitness influencer and has a whole supplement company that does extremely well. And he, uh, is a, uh, a former Marine and so on. Uh, on, I think he does, Memorial Day is the only day that he ever runs a sale. So it's Memorial Day, every year he runs a sale, and that's the only day you're gonna get a discount on his products. And, um, it works extremely well because he's doing it as a, Hey, this is a celebration, right? I'm doing it to, to give back. And this day, um, that's meaningful for me. And it's not an everyday thing. It's during Black Friday that week, he does not discount. Um, but during Memorial Day, it's his one day a year where he says, You know what? This is meaningful for me. Yeah. I wanna honor everybody.

Brett:

It's a powerful reason why people resonate with that. And then it's almost more like a, Oh, you're not discounting, you're doing like an active charity or something, or like an active service. And so

Speaker 2:

It's brand, it's on brand. It's

Brett:

On brand for sure. Mm-hmm. <affirmative>. Yeah. Yeah. Another, uh, example, and this may be in the article, but I love this strategy and this is really useful right now, especially as costs of everything are going up, supplies going up, supply chains, more expensive, shipping, inflation, all that stuff. Uh, a lot of people are raising prices. Mm-hmm. <affirmative>. So I, I know of two brands who've done this recently, and it was one of their best sales or events ever where they're like, Hey, we're about to raise prices, hate to do it, but we gotta raise prices because of these factors. And you make it understandable when you make it fun, but like, Hey, you can buy it our current prices for the next two or three weeks. I love this strategy. I had, I had two people recently tell me, me biggest promotion they've ever done. And I was like, we didn't discount at all. We just, we said we're about to raise prices, We haven't done it yet. Lock in this price while you can.

Speaker 2:

Yeah. I love that idea. I love that idea. And again, you're not discounting, right? I mean, you're basically telling people, Hey, I'm doing you a service by giving you a heads up, I'm treating you right. And I want you to know I'm not gonna pull the rug out from under you. And again, I feel like that's adding, not taking away Exactly. Because you're basically adding in the ability to order this before the price goes up. And I'm giving you the knowledge. I'm adding in the knowledge that prices are gonna go up.

Brett:

Yeah. Yeah. Really good. John, this has been fantastic, man. I'm, I'm all, I'm all hyped up about <laugh> optimizing now and getting out there and making, making the web a better place, making my website better as well. So if people enjoy this interview, which I know they did, and they're probably looking like, Hey, that's a good looking book, I'd like to check that out. Yeah. Uh, where can people find this book?

Speaker 2:

Uh, well, it's every book seller has it. Um, but the easiest place is to go to the good.com/books and, uh, you can see all the books I've written there, and I'll order this one. Um, and, uh, either get a ebook copy right away, uh, or hardback or paperback, uh, mailed to you. So, uh, it's all of our Amazon as well. Again, the book is opting into optimization. Um, so, um, I'm happy to, to have people reading it and that it's been such a success.

Brett:

So it's awesome, man. And then if folks are listening and say, Man, I'd like John and Team to take a look at my website and know you offer Teardowns Yeah. And then optimization services as well. What, what's the best way for someone to go about talking

Speaker 2:

About that? Yeah, just shoot me an email. Um, it's j o n the good.com. So j o n with no h@thegood.com. Um, people respect it. I, you know, I, I try to get through my email as, uh, as often as I can, so shoot me a note. I promise I'll get back to you.

Brett:

That's awesome. John, this has been fabulous, man. This is what you, you brought the goods on the call today. I really appreciate it, buddy. And I appreciate you. You're playing hurt, man. You're, you're delivering good results. I know that shoulder's banged up. I know you're in a lot of pain right now, and so I appreciate you coming on the show and delivering such value

Speaker 2:

Problem. I appreciate it. Thanks for having me, Brian.

Brett:

Awesome. Thanks John. All right. And thank you for tuning in. Really appreciate it. As always, I would love to hear from you if you've not reviewed the show. Hey, now be a good time to do that. We'd love that five star review. If you think the show is worthy, it does help other people discover the show. And so with That. Until next time, thank you for listening.





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