Leveraging Crypto and NFTs for E-commerce Growth: An Insight from William Harris of Elumnyt
In a recent episode, we were privileged to host William Harris, Founder and CEO of Elumnyt, renowned for pioneering the integration of cryptocurrency and NFTs in e-commerce. Harris’s revolutionary approach has been instrumental in increasing the profitability of online stores without diminishing profit margins. Today, we share the gold nuggets from that episode.
But before we proceed, don’t forget that this episode is brought to you by videocasestory.com. Click here if you need help collecting, crafting, and delivering customer stories.
Profitability Over Revenue
Starting ad campaigns can be a tricky venture. Often, e-commerce operators concentrate more on the increase in revenue, oblivious to the fact that boosting revenue can sometimes dilute profit margins. Harris advocates for a shift in focus toward understanding the dual aspects of profitability and how to optimize them through touchpoints and attribution.
Harris’s Top Three Online Advertising Channels
When asked about his favorite online advertising platforms, Harris gave three picks: Facebook/Instagram, TikTok, and YouTube. Notably, he considers YouTube as a diamond in the rough, largely underutilized yet very potent, particularly when furnished with the right links.
Success Stories and Client Relations
Harris’ agency is reputable for helping e-commerce merchants flourish. An impressive 13 of their customers have been acquired, including a unicorn that sold for a staggering $800 million. Their growth methodology is heavily influenced by the SaaS world, with a keen focus on Customer Acquisition Cost (CAC) to Lifetime Value (LTV) ratios.
The agency thrives on innovation, staying ahead of the competition by exploring passion projects beyond their typical work, such as crypto projects and VR advertising methods. They aim to boost clients’ profit margins by analyzing their P&L and understanding their growth objectives.
The Nitty-Gritty of Profitability
On an aggregate level, profitability can be augmented by optimizing revenue and reducing costs. On the unit level, profitability can be enhanced by gearing advertising towards more profitable products and orders. It is crucial to understand that top-line revenue doesn’t always correlate with bottom-line profits.
Aligning Marketing with Finance
Harris stresses the importance of dialoguing with the finance team to synchronize strategies and comprehend how to scale effectively. He further gives an insight into his three favorite channels. Facebook and Instagram are stable platforms driving incremental results. TikTok, though harder to create for, possesses a viral potential. Lastly, YouTube, though underutilized, can be very effective with long-form content that showcases products or services.
Diversifying Platforms and Strategies
YouTube users are not only there for entertainment but also for learning, thus content should be powerful and well-formatted. Decision-making on which videos go where should be anchored on market research and understanding the target audience’s preferences and behaviors.
When testing new ads, Harris advises considering both top-of-funnel engagement and bottom-of-funnel impact. Furthermore, before deciding to invest in testing a new channel, it’s crucial to ensure existing channels are performing at their full potential.
Working with an Agency: Pros and Cons
While in-house marketing can be cost-effective, Harris recommends considering agency support once there is product-market fit and profitability has been established. It’s crucial to find an agency that can work across channels and understand how different pieces fit together.
He warns against agencies that use templated approaches and advises businesses to consider a dedicated consultant who can work alongside their in-house team for consistency and effectiveness across all channels.
Ideal Client and Getting Started with Elumnyt
Elumnyt’s ideal client is typically a Shopify Plus user who spends around $100,000 a month on ads and has established a product market fit. They also prefer clients with large catalogs for margin-based bidding and those with recurring revenue models for long-term value plays.
Starting with Elumnyt entails an audit of the client’s ads account to enhance profitability and a meeting with finance teams. They believe in transparency, sharing their strategies with clients, and allowing them to decide whether they want to proceed or not.
Watch the full episode now, and make sure to leave any questions or comments you have about the episode.