This was originally published in the No Best Practices newsletter on 4.10.2022.
This is part three of the “How To Destroy Your eCom Business” series, aka what not to do to build a healthy customer file. This series covers common business decisions that have unexpected consequences. These decisions appear to pay off in the short term, but they make it harder for your business to succeed in the future.
Reminder: a healthy customer file enables a business to succeed today, but it also sets a business up for success in the future.
By now I’m hoping you recognize the value in studying “what not to do”. And if you ever ask yourself where I get all these ideas about eCom and marketing, that’s your answer: I think a lot about the wins and losses I’ve seen throughout the course of my career.
The next two parts of this series are going to cover two sides of the same coin: how businesses choose to respond when their core business stops growing. The slowdown in growth may be due to changing consumer behavior, core audience attrition, or a number of other factors. But the result is the same: sales flatten out and growth is harder to come by.
To solve this problem, a brand must walk a tightrope between optimizing the core business/cash cow and generating new sources of revenue with future growth potential. It’s very hard to do this well.
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