Lessons from AJ and Meaghan's entrepreneurial journey

Lessons from AJ and Meaghan’s entrepreneurial journey

In this week’s blog post, we wanted to showcase our appearance on the First $100K podcast with Joseph Warren. In this episode, they cover everything from lessons learned to current fears about business. Make sure to check it out with our insights below:

What do I really want?

Too often in our lives, we get caught up in the flow of things. We allow ourselves to just progress in our lives without taking the time to ask what it is that we’re truly looking for. By becoming intentional and taking the time to ask ourselves what we actually want, we can start being proactive about our decisions rather than just reactive.

AJ and Meaghan realized that the path that they started on no longer suited the lifestyle that they wanted. They ran a successful marketing agency, but they found that the business could not function without them. This made it impossible for them to live the lifestyle that they wanted, and didn’t fit with their long-term vision for the business.

They decided to ask themselves what had brought themselves to this point in their lives, and what things kept them from reaching their goals. In order to run this analysis though, they first had to define what they really wanted. After they defined what they wanted, they reverse engineered that into what they needed to do to achieve success.

What is stopping me from achieving my goals?

Meaghan and AJ found that they wanted time freedom. But when they looked at their situation, they found that their business was blocking them from that. Because the business was built around AJ and his expertise, he needed to be on every call and project. This made it impossible for them to properly scale the business properly, and cost them their time freedom. They started to analyze the business, and quickly realized that they had a problem with hiring. None of their hires could replace AJ, so he was stuck. In order to gain the freedom that they craved, they needed to start hiring smarter.

Creating a multiplier-

At this point, Meaghan and AJ realized that even though they owned their business, they were still stuck trading their time for money. Inevitably, you reach a plateau or a breaking point in that deal. They realized that they needed to break out of that cycle to live the lifestyle that they wanted. The only way to improve that exchange is to find a multiplier.

Multipliers come in a myriad of forms: employees, automation systems, processes, etc. A multiplier includes anything that can increase your output without requiring more input from you.

Tips and strategies for creating your first $100K-

Hire the right people

Getting the right people on your team will drive your first $100K, almost more than anything else. You can do almost anything with the right team around you. You have to remember though, the people who helped you get to $100K may not be the right people to help you get to your next $100K. For AJ and Meaghan, they hired whoever they could until they reached their first $100K. Once they broke through that initial barrier though, they decided that they could afford to select better employees. They went back and started replacing their mediocre team members with better team members, and this helped them rapidly scale the business.

Target your market

The next tip that they would suggest is focusing on the right customers. For Meaghan and AJ, they luckily already had some clients built in to this new business that they launched. They had some marketing clients that needed tracking and analytics services. This allowed them to hit the ground running, and then expand their offerings to suit the needs of their target market.

During this phase of finding their ideal clients, AJ and Meaghan established a mantra: easy and effortless. They wanted to target clients that would be easy to capture, easy to educate, and easy to serve. By following this focus, they quickly expanded their client base, allowing them to scale in other ways, as we previously discussed.

Over-deliver for them

By properly targeting their clients, they knew that Praxis could over-deliver to their clients, and that is their third tip. During the start-up phase, it’s imperative that you create raving fans for your product. In the early days, most of Praxis’ growth came from word of mouth referrals from business owners. Because Praxis delivered such value to their clients, they told everyone that they knew about their amazing work. This over-delivery keept their clients coming back for more work, and the referrals created a steady stream of new business for Praxis.

What was the biggest mistake?

The biggest mistake that Praxis made was also one of the keys to their growth early on. Unfortunately, Praxis just continued the practice for too long. After years of business, Praxis still struggled with scaling. They brought in great top line revenue, but very little of it made it to the bottom line. AJ and Meaghan decided to run a deep-dive on their expenses to figure out where this money went. They discovered that over-delivering to the clients made it impossible for them to scale.

Basically, when they drilled down into the numbers, they discovered that they wrote off tons of hours in order to provide better products for their customers. This meant that the client didn’t pay for those hours worked on their project, but Praxis did. This one thing ate up almost all of the profit from the business, and cost them more than half a million dollars annually.

Meaghan and AJ feared that if they stopped writing off the hours, that their clients would revolt against them and leave. However, they found that no one had a problem paying the extra money, because the finished product was worth it. They got stuck in the mindset of the entrepreneur, and thought that they still needed to prove themselves. But they discovered that they had already passed that phase of the business, and people trusted and valued them enough to pay the true price.

The unfortunate truth-

Too many businesses get trapped in this same mindset. While it is important to over-deliver to the client, you also need to make sure that you charge what you are worth. At the end of the day, you need to make sure that the relationship works for both parties, not just the client. Most of the time, your clients will understand. If you have priced your products properly, you shouldn’t need to discount them in order to maintain the relationship.

Why do so many entrepreneurs struggle to cross $100k?

Over 90% of entrepreneurs struggle to break through the $100K mark. AJ and Meaghan never felt like the business struggled to cross that threshold, but they found it difficult to reach $100K personally. Meaghan specifically wanted to pour all of the money back into the business, as she felt that she could make more by forgoing her pay and instead bringing on a new employee or expanding the business offerings. She learned over time though that if she didn’t take a paycheck herself, then she would hold that against her employees. If they made more than her, then she felt that they needed to work harder than her.

Once she started paying herself though, she discovered that she valued her time more. She no longer took on menial tasks within the business because her time now had a cost attached to it. This caused her to shift focus towards bringing in people that could do those tasks in her place.

At this point, the podcast shifted to a lightning round of questioning, so we included the questions and responses below:

What is the best thing about being an entrepreneur?

AJ-

AJ loves the creative process. He loves the process of coming up with an idea, and then turning it into a plan and executing on it.

Meaghan-

Meaghan loves working from anywhere, and not having a standard dress code for work.

What is the worst thing about being an entrepreneur?

Meaghan-

Meaghan doesn’t like working 18 hour days. Especially when no one appreciates it.

What do AJ and Meaghan fear the most?

AJ-

AJ fears not having Meaghan around.

Meaghan-

Meaghan fears insecurity. This includes emotional and financial insecurity.

What did Meaghan and AJ spend too much time doing in the first year of business?

AJ-

AJ feels like he spent too much time managing expectations, also doing things outside of his wheelhouse.

Meaghan-

Meaghan also felt like they spent too much time outside of their strengths. They spent too much time putting the entire business on their shoulders and not bringing in specialists to help them out.

What secret fear do they have about people?

AJ-

AJ loves people too much to be afraid of them. He loves to figure people out and help them to maximize their potential, so no fears from him.

Meaghan-

Meaghan fears that people will let her down. She has high expectations of everyone, and has had a lot of people let her down.

What do they struggle with personally?

AJ-

AJ is currently struggling with imposter syndrome. As the business grows and scales, he feels less and less involved in the company. This has caused a bit of an identity struggle within him about who he is to the company and where his role is.

Meaghan-

Meaghan is struggling with her outlook. As a natural pessimist, she tends towards the negative very quickly. AJ always sees the potential for good, and she tends towards seeing the potential downside.

What do they wish they had learned sooner in business?

AJ-

Better hiring skills. If they had mastered hiring earlier on, it would have saved them a lot of time and money.

Meaghan-

To piggyback off of AJ’s answer, training as well. Training and coaching employees rather than being a taskmaster.

What 3 words would they choose to describe themselves?

AJ-

Radiant, inspiring, and clear.

Meaghan-

Disciplined, realistic, and prideful.

What 3 words would you use to describe yourself in the first year of business

AJ-

Scattered, frustrated, and hopeful.

Meaghan-

Naive, non-committed, and unfocused.

What is one bad habit that you want to break?

AJ-

Sticking to the morning routine more consistently.

If you could come back to life after death and offer one piece of advice to your family, what would it be?

AJ-

Love more. Every day try to love more.

Meaghan-

Focus on the things that matter.

How to get the most out of your ad spend this Black Friday and Cyber Monday.

How to get the most out of your ad spend this Black Friday and Cyber Monday.

We’re down to the wire when it comes to Black Friday and Cyber Monday 2019. Because of the way that Thanksgiving fell this year, the holiday sales cycle is compressed and shortened. This compression has already had tremendous impacts on ecommerce businesses this month. Ecommerce companies across the spectrum are struggling to get traffic and conversions out of their standard ad spends.

In this post, we’ll walk through ways that you can leverage data to help you maximize your ROI and ROAS. While we’re focusing on Black Friday and Cyber Monday, these tips and this information is applicable year-round.

How to make sure that you maximize your ROI this Black Friday-

The first step to maximizing your returns is making sure that you have data.

That means getting your tracking in order. Lots of business owners and marketers put tracking off. It’s a common impulse.

Tracking takes time and it feels tedious to set up triggers and events for everything on your site; but no one can make up historical data. If you don’t set up your tracking until you’ve already been in business for 5 years, you will miss out on 5 years of data and insights.

Even waiting to start until after the holidays will cause you to miss out on potential insights into how you can better capture and serve your customers.

We recommend that everyone do a quick audit of their tracking systems to establish where they are now. Some of the things to check in this audit are:

  • Do your UTMs all track properly across your customer journey?
  • Are your UTMs organized in a way that makes sense and actually helps you better understand your customers?
  • Can you see right now where your traffic is coming from, and which traffic converts the best?

If you can’t answer yes to all of those questions, then you won’t be able to get nearly as much out of your Black Friday data.

As we talked about earlier, you can’t analyze what you don’t have. So if you don’t have your tracking set up before Black Friday and Cyber Monday, you won’t be able to know what you can do to improve your results next year.

Moving into UTMs, you NEED to make sure to track all of your marketing efforts with UTMs. They can help you track variations on ads, help with split testing, and give you clarity into what marketing efforts actually drive results for your business.

Step two to maximizing your returns is reviewing your data.

If you already have UTMs in place and feel confident in your tracking, then you can take the next few weeks to review your data. Look at what has worked for you in the past: analyze which emails have the best open and click-through rates, check which ads yield the highest ROAS, what buttons drive the highest cart values, etc.

Too often we get caught up in our plans for the future. We get locked in a cycle of what we want to test next, and we forget to look at what we’ve done in the past that worked. Those that fail to learn from the past are doomed to repeat it. If you don’t go back and review your data, you could potentially miss out on huge, easy wins for your business.

As we talked about earlier, Black Friday being pushed back a week has changed the face of the buying season. Many ecommerce companies are in full-blown panic mode right now because their year-over-year revenues are way down from last year.

We suggest that rather than making month-to-month or day-to-day comparisons, look at your data through the lense of days before Black Friday. So, if today was 5 days before Black Friday, you could compare it to 5 days before Black Friday last year. Then you can start to analyze what your marketing efforts looked like on that day last year, what worked, what KPI’s you saw success in, and how those impacted sales on Black Friday.

We recommend focusing on driving traffic to your site, and getting them browsing your products. Then you can leverage retargeting to reach them during your Black Friday sale and focus on driving them to purchase.

What metrics you can use to get a leg up this Black Friday and Cyber Monday

Now, we want to switch gears and talk about what metrics specifically you should analyze and track to make sure that you have the best Black Friday and Cyber Monday possible.

Average Order Value (AOV)-

This one seems basic, and it is, but we see ecommerce companies forget about this frequently during this time of the year.

Most companies focus on their profitability and the discount rates around this time of the year. That should be a top priority, but you also need to make sure that you have your upsell flows, recommended products, and bundles in order to make sure that your AOV doesn’t tank. While you may want to focus on client acquisition, you still need to make sure that these new customers provide value to your business.

This is one of the primary metrics that you should review from last year. Explore what bundles drove higher cart values, what products drove cross-sales, and what upsell flows performed best for your business.

Promo Code effectiveness-

This seems like a no-brainer, and hopefully you already have examined this data. Looking back at what discounts you ran last year and seeing what worked, what failed, and what fizzled will help inform you as to what you should do this year.

In addition to just looking at the surface-level of this metric, we recommend that you deep-dive into when your customers used your different codes, what time of day they purchased, what the AOV was based off discount code, and what was the average discount per code.

Inventory-

Black Friday and Cyber Monday are some of the worst possible times to run out of inventory. Obviously you can’t perfectly predict this year based off last year, but by examining your historical data and comparing that with this year’s demand, you can get a better feel for how much you need to order.

Staffing-

Many ecommerce companies neglect to factor staffing into their costs. During this time of increased demand, lots of businesses need to bring on extra help; but they fail to account for this increased cost in their cost of goods sold.

Not accounting for this can easily turn your sale from an asset to a liability. Typically, as you increase sales, you also increase the amount of customer service tickets that you receive. If you don’t have the bandwidth in place for that you may need to bring on additional support, but they may not get fully trained in time. Additionally, the increased wait time to have issues resolved can cost you sales.

If you don’t have a solid plan in place, issues can sneak up and turn your holiday into a nightmare.

Lifetime Value of Customers (LTV)-

One of the biggest dangers that businesses face during this holiday season is acquiring unprofitable customers. Many businesses run loss-leader deals in order to acquire new customers and think that they’ll make up the loss sometime down the line.

Without tracking the lifetime value of those customers over time, you’re stuck guessing about their profitability. We have dealt with clients who offered discounts in order to acquire new customers, believing that they would make it back over time, only to discover later that they had overestimated the value of those customers. They thought that these new customers drove their profitability, but as it turned out, they dragged down profitability.

In order to maximize the effectiveness of your Black Friday and Cyber Monday marketing efforts, you need to understand what these clients purchase initially, what they come back to purchase, and when they come back to purchase. If you understand those three things, you can tailor your marketing efforts to their natural buying tendencies and dramatically increase your effectiveness.

Going through last year’s data and then looking at this year’s plan and making sure that they align is the key to a successful Black Friday.

How to leverage pre-Black Friday sales to your advantage-

We have found that if you can give your clients a juicy enough discount code, you can entice them to spend their money with you even if they know that they’ll likely get a better discount later. Some of the larger retailers have decided to just launch their official Black Friday deals before the official holiday.

You could also promote your pre-Black Friday sale exclusively to your email list. This provides value to those who have signed up for the list, and could entice others to sign up.

We have also tested the tactic of offering a sale before the holiday by pitching it as a way for the customer to make sure that they got their orders on time. If they took advantage of this sale before the holiday rush, they could get a good deal, and also avoid the hassle of holiday shipping issues.

How real-time reporting can increase your ROI this Black Friday-

Tracking and reviewing your data make up the first two pillars of your data temple. The third pillar is automation.

In today’s world, every system tracks one specific thing, and it refuses to share that information with any other platform. Because nothing communicates, it falls to humans to aggregate and gather all of the data together. It can take days or even weeks for people to pull together the data, get it placed in the right location for analysis, and then take action from it.

Praxis Metrics specializes in automating the process of gathering the data from all of the different systems where it lives, cleaning it so that all of the metrics align properly, and then visualizing it in real-time.

This real-time reporting allows you to adjust and tweak your efforts much faster than if you relied on manual reporting. This decreased time to insights allows you to experiment and improve your marketing much faster, allowing you to drive immediate results, rather than having to wait a full year to improve your strategy.

The goal this Black Friday and Cyber Monday-

The goal of this entire process is to help you have the best Black Friday and Cyber Monday possible. If you have set up your tracking properly, you should know where your best customers come from and what efforts drove those customers to your ecommerce site. These insights will allow you to double down on the things that actually drive results, and cut the things that didn’t work for you. You can reallocate your budget from the things that didn’t drive results to the things that do drive results, allowing you to increase your ROI, and bringing in more money that you can then reinvest into the marketing efforts that are actually working.

How can you assess your data maturity to understand next steps?

We always start with an audit of where you stand. In order to understand your next step, you need to understand where you are.

Even if you have set up your tracking previously, we recommend an audit. As your website grows and you make additions and changes to it, you can easily break your tracking, or miss out on tracking valuable insights.

Praxis Metrics Data Maturity Spectrum

Stage 1-

If you fall into stage one, your entire goal is to gather as much information as possible. You can do this through Google Analytics, UTMs, defining your Key Performance Indicators (KPIs), and above all else, create Standard Operating Procedures (SOPs). If you can standardize your naming conventions for UTMs, SKUs, etc., you can save yourself hours of cleanup down the line.

Stage 2-

If you fall into stage two, your focus is on automation. What compound interest is to your money, automation is to your time. We have had clients cut the number of man-hours required to complete a data project from 10 hours per month to 1. Automation allows you to scale your efficiency and effectiveness across the board.

Stage 3-

The focus of stage three is optimization. Everything before this point deals with historical data. Optimization leverages the wisdom and knowledge gained from the previous stages and applies it to your future endeavors. This allows you to predict outcomes from your actions. This stage is where the magic truly happens. Your efforts yield predictable, exponential results, allowing you to rapidly scale your business.

Stage 4-

Stage four is the buzzword stage. This stage focuses on leveraging AI, machine learning, etc. These technologies allow you to improve your business at scale through incremental adjustments.

In conclusion-

No matter where you fall on the data maturity spectrum, Praxis Metrics is here to help. We offer free data roadmaps and coaching, analytics audits, dashboarding solutions, etc. If you want to learn more about Praxis Metris, visit praxismetrics.com or drop a line here.

How to take advantage of your data as a small business

How to take advantage of your data as a small business

Meaghan was recently interviewed on Lena Elkin’s podcast, Unfiltered.

Check out the full episode below along with our insights on the most important points.

How did Meaghan get her start?

Meaghan grew up in a home that was not entrepreneurial at all. No one in her family had ever gone to college, so she was taught that management was the goal. If you could reach management, you had arrived.

She had her first taste of entrepreneurship in college selling encyclopedias door to door. This experience allowed her to become her own boss and manager her own “company”. This opened her eyes to how her own individual contributions affected her income. Through this experience, she learned the value of being 100% responsible for herself and her outcomes.

After that, she became a sales consultant, but still under an organization. During this time, she met AJ.  AJ is an entrepreneur through and through. He started creating companies at age 10, so he opened her eyes to the possibilities of entrepreneurship.

One of the biggest transitions that she had to make was to shift her mindset from individual contributor to growing a company.

Luckily, her journey with data started much earlier.

Meaghan was the math nerd from an early age. She jokes that she had more math books than friends. Meaghan loved math and numbers because everything had a correct response. Everything was either right or wrong, and it was clear why.

She had planned to become a math teacher, but upon discovering her gift for sales, she decided to focus on hustling while she could and teach later in life.

The sales bottleneck

In all of Meaghan’s sales experience, she relied on her inputs to create outputs. She either knocked doors to get sales, or she cold-called businesses to get sales. Enter AJ.

AJ worked in marketing, and Meaghan wanted to learn more about what that meant. So she shadowed him working on a client. The client had set up a course that he wanted to sell, so AJ set up a sales funnel and landing pages, and then sent out an email to his list. They had 500,000 on that list, so they sat back and waited to see the responses. Within 8 hours, the campaign had cleared $1.2 million.

Upon seeing this, Meaghan knew that she needed to make the jump from sales to marketing. Because of her background in sales, she helped with copy and closing clients. Upon spending some time in the agency, she began to notice patterns in the data.

In her time working in sales, she would split test approaches and different scripts. Over time, she perfected her sales pitch. Upon making the switch to marketing, she realized that they did the exact same thing, just on a larger scale, and with more automation.

The marketing bottleneck

While running the agency with AJ, they had to report back to their clients on the progress of their campaigns. So they had a marketer who had to run reports for clients all day, every day. He wasn’t able to do anything else because they had to get this data to their clients.

So Meaghan started researching ways to automate their reporting. She found the solution in the world of data analytics and business intelligence. She found that many of these programs could automatically do what they had someone doing by hand. The programs could extract the data from all of the different sources, aggregate it, and even display it in an easy to interpret format.

Once they rolled out these reporting solutions to their clients, they naturally wanted more. They wanted more information on their business and wanted that same powerful reporting for everything. Ultimately, everything that Meaghan worked on led her down the path to Praxis.

AJ and Meaghan pivoted their marketing agency into a data analytics agency, and now help business owners and marketers understand their businesses better through data.

How to take advantage of your data

The first thing that you need to do to truly take advantage of your data is set your ego and emotions aside. As Meaghan talked about earlier, numbers allow you to see in black and white. Rather than focusing on how they make you feel, you can use that information to help you grow forward and progress.

ETL

The next thing that you need to do in order to truly take advantage of your data is a process called “ETL”. ETL stands for Extract, Transform, and Load. Essentially, you need to extract raw data from the back ends of your systems, then transform it to make sure that it accurately reflects what you want to measure, and then load it into a business intelligence or visualization tool.

Get help

Lots of solopreneurs and early stage entrepreneurs end up needing to learn sales and marketing in order to get their company off the ground. Learning data as well would likely push anyone over the edge.

That’s a big reason why Praxis shifted down-market. We used to work with larger companies, but we found that they needed answers to the same questions that the little guys did. Everyone wanted to know what worked, what didn’t work, where to spend more money, and where to cut spending in order to better optimize.

The best time to start thinking about integrating a BI or dashboarding tool is after you’ve already hit $250,000 in revenue. For businesses pre-$250,000 it’s best to focus on tracking. Too many businesses wait until they get big in order to worry about their data; but you can’t leverage data that you don’t have. Every business needs to set up tracking, and the earlier you set it up, the better.

Most businesses spend all of their time worrying about their copy and their look and feel, but they neglect their tracking. Google Analytics is one of the most underutilized and error-prone tools on the market.

We see lots of big companies that come to us with very little or no data available to them, looking for answers to their business questions, but they don’t have any data. We have to take them back to the beginning and help them set up their tracking, and then we can help them analyze the data as it comes in.

Data is sexy.

Lots of people view data as something that happened in the past, and therefore not something that can help them in their current situation; however, the true power of data is that it can help you see the patterns in the past, and then predict and shape the future.

As we covered earlier, it’s very important to get started as early as possible with this process. So now we want to cover how you can get started:

UTMs

UTMs are a free tool that every business can and should use for all of their marketing. UTMs allow you to pass information through URLs in order to better track where your traffic comes from. Adding UTMs to your external links allows you to understand how your customers found you and what content they interacted with.

UTMs allow you to see much cleaner, more granular data about the performance of your marketing efforts. This allows you to get better insights, allowing you to decrease waste and double down on what works.

If you want to learn more about UTMs, we have a course that walks through how to build them and gives you tools to help you automate the creation of your UTMs. Here is the link to that course.

If you need help with more of the advanced data issues that they discussed, check out our business intelligence tools and dashboards.

Praxis Metrics ways your eCommerce loading speeds can impact your bottom line

Ways your eCommerce loading speeds can impact your bottom line

Holidays are almost here and getting ready for Black Friday and Cyber Monday is crucial.

In the latest episode of the Data Rich podcast, AJ Yager and Spencer Connell talked with Robert Rand about how you can prepare your eCommerce store for the holidays.

Check out the interview and our insights below:

Why is data important?

Everything in eCommerce is a blend of art and science. The numbers tell the story of how people feel about your art. Without going back and checking on the numbers, you’ll never know how your efforts actually panned out.

Many people don’t think about getting the right metrics and the right data in front of them, and that comprises half of the battle. Most of the biggest companies in the world rely and thrive based off of their data and the infrastructure that they’ve built around that data. Both Robert and the Praxis team derive a lot of value from helping other businesses harness the power of the data and leverage it into growth.

Every company today is a data company; they just don’t know it yet. The only way to properly scale in today’s environment is to know your numbers and leverage them into growth. That doesn’t mean that everyone needs to be a data expert, but it does mean that without data, the journey to a successful company is nearly impossible.

What opportunities does Black Friday/ Cyber Monday afford brands?

Every year Black Friday and Cyber Monday spending grows dramatically, and this year is no exception. Experts predict a 25% increase in spending year-over-year, with most of that spending taking place online. The days of stampedes of people rushing into stores have passed, and now even brick and mortar stores find themselves primarily as eCommerce businesses.

Brands now need to prepare their digital storefronts more than their physical storefronts for the stampedes.

How can eCommerce companies prepare their digital storefronts for the big end of the year sales rush?

You can run the best marketing campaigns ever created with the best automation capabilities ever devised, but if your website has issues converting web traffic into sales, you won’t achieve the ROI you’ve come to expect from many proven marketing strategies.

Without monitoring for site performance and issues, there can be all sorts of factors impacting your bottom line.

What are the top factors?

☑ Security: How healthy, safe, and secure is your website?

You never want to have a security or data breach, but during the holiday season a breach could obliterate your opportunities.

Every business should make sure that their eCommerce platform has the latest security patches downloaded and installed. It’s also important to make sure that your software and hosting is completely up-to-date. You need to make sure to calibrate and update firewalls as well. Ideally, you should have proactive monitoring in place to alert you to any suspicious activity.

The same way that you protect a physical store from people breaking in, you need to protect your digital store as well.

For example, in the event of a DDoS (Distributed Denial of Service) attack, you need to have CDNs (Content Delivery Networks) or Caching systems in place to ease the load on your hosting environment. For bigger merchants, you’ll want to have auto-scaling systems or host in a cloud environment like AWS that can spin up to deal with whatever gets thrown at it.

In addition to adding reactive layers to your security, you need to have pro-active layers as well to recognize and block suspicious traffic from reaching your hosting environment.

In the event that your security does fail, you need to have a short-list of the people that you can contact depending on the situation. It’s important to know that these people will be available to help as well, even over the holidays.

Doesn’t my eCommerce provider handle security?

Out of the box, no. Most eCommerce providers offer a layer of security and help to encrypt payment information and things like that, but they don’t protect you completely. You need to supplement that with your own security coverage. As the eCommerce owner, you have a responsibility to protect your passwords. Additionally, you have to take responsibility for the code of the site. Just because their base portion of the site is secure, doesn’t mean that your entire site is secure.

This same principle extends to any apps/extensions/modules that you may have added on to your site. Every app that you add has the possibility of introducing a security flaw into your site.

How can I protect my site?

Some of the best practices that you can implement include:

Least privileged access- give apps/employees/vendors only access to what they absolutely need in order to function properly.

Minimize the number of apps on your site- remove plugins from your site that don’t provide sufficient value. They can slow down your site, and do increase your security risks.

Proactive monitoring and alerts- set up alerts so that you can know in real-time when you have a problem.

Support action plan- make sure that if something goes wrong, you know who to contact.

Coding freeze- If your site is working currently, stop messing with it until after the holidays. This protects you from introducing new bugs or security holes into your site before the holiday.

☑ Scalability: Can you handle a growing amount of web traffic?

Many vendors offer this service, but JetRails specifically offers load testing. This allows them to simulate an influx of traffic to your site to see how it performs under pressure.

During the holiday season especially, this can mean the difference between success and failure. These tests allow you to see where you have structural issues with your site, and how you can combat them.

JetRails is offering a limited-time load test to Magento merchants for free through Praxis Metrics. Visit them here to get the free test.

☑ Loading speed: Does your site load in under three seconds?

Many merchants know that site speed is important, but they don’t really invest in it. They don’t regularly check their site speed, they don’t invest into speeding up the site, and over time, site speed can cause a plethora of issues, especially on mobile. 53% of mobile users will leave a site if a page takes longer than 3 seconds to load.

You can optimize your load speed by looking at several things on your site. The first thing to look at when it comes to load speed is your content. Make sure that you have shrunk all of your images to the smallest file size possible without sacrificing quality.

When it comes to loading speed on your site, everything comes down to file sizes. If you can reduce the size of the information that you’re sending, then you can increase your load speed times. This applies to both images and the code that you have on your site.

It’s important to audit your theme to make sure that it still fits your needs as you update and change your site. Make sure that it properly and quickly loads the assets that you need it to.

Additionally, there are programs that can help combine files to help reduce the loading speed of your site. These can combine all of your JavaScript or CSS or HTML assets into a single file, to help lighten the number of things that your site needs to load.

Just because it was optimized before doesn’t mean that it is now.

Too many business professionals think that optimization is a one time endeavor. Unfortunately, every change that you make on your site can effect the loading speed of your site. That’s why it’s so important to do a periodic audit of your site’s optimization and loading speed, to make sure that everything performs as intended.

Does my web host have any effect on loading speed?

Unfortunately, yes. In addition to looking at the front-end loading of your site, you also need to look at how the back end of your site affects your load speed; specifically your web hosting.

JetRails tests a metric called “time to first byte”, which allows them to look at how quickly the server is able to provide the first byte of data to the browser. Some servers can take 2-3 seconds to get the first byte to the browser, which means that obviously something isn’t working on the back end of the site.

Fortunately, there are things that we can do to make sure that our web host gets the content delivered in a timely manner.

The first thing that we recommend is caching. This allows your server to essentially have all of the assets that it needs to pull together already put in one place, which decreases the load times and computing power required.

The next thing that you should utilize to help your web host is a content delivery network (CDN). A CDN allows you to save some of your unchanging assets onto different servers across the globe. This reduces the time that it takes to transmit the data to different locations across the globe, and it also allows you to have cached versions prepared and ready to send. This also reduces the load on your primary server, helping reduce the risk of a crash.

☑ Error monitoring: Spot and fix pages that aren’t loading

During the slow times on your website, it is valuable to have your web developers check your error logs and exceptions to see what errors could be lurking. We see a lot of people who wait until something breaks to fix it, but proactive maintenance can protect against a terrible issue. Specifically ramping up to this big holiday season, it’s important to make sure that you don’t have a problem that could potentially cost you customers.

☑ Shared resources: Is it time to adopt a dedicated server?

Long-term, it may make sense to move to a dedicated hosting environment. In shared hosting environments, you can’t control the actions of those sharing your space. If another site introduces a security breach to the server, it can affect your site. If someone else on the server has a major traffic spike, they can eat up all of the resources and slow down your site.

No one wants to spend more than they need to spend on anything; so it’s important to weigh out the pros and cons of each option for your business. You should also make sure that you revisit this discussion periodically as your business grows and develops. Just because it wasn’t worth it to migrate a few years ago doesn’t mean that it isn’t now.

☑ Uptime: How sure are you that you’ll be up 100% of the time?

Consumers have become less patient and more wary of sites that aren’t reliable in their eyes. If your site is down at the moment that the customer wanted to purchase, they’ll likely just move to a competitor to purchase.

Final thoughts and ways to take action-

Get a free load test from JetRails before the holidays. They’ll help you see if your site is ready for the Black Friday and Cyber Monday rush.

Proactively monitor your site, specifically the CTAs that we mentioned. Make sure that you’re checking in with both your developers, designers, and your web host to make sure that you’re site performs optimally across the board.

At the end of the day it comes down to picking the right vendors, trusting them, and sleeping well at night.

Resources:

Speed Test: Test your Time to First Byte (TTFB) and make loading speed optimization recommendations

Security Scan: Scan your Magento website for publicly visible security vulnerabilities

Load Test: Review with you to see if you’d benefit from a free load test  

Could Traffic Spikes Take Down your Magento site: https://jetrails.com/blog/could-traffic-spikes-take-down-your-magento-site/

Stats from Robert:

“As page load time goes from one second to 10 seconds, the probability of a mobile site visitor bouncing increases 123%.” 

“53% of mobile site visits leave a page that takes longer than three seconds to load.”

https://www.thinkwithgoogle.com/marketing-resources/data-measurement/mobile-page-speed-new-industry-benchmarks/

“When it comes to waiting for pages to load, most consumers think they’re more patient than they actually are.”

“Nearly 70% of consumers admit that page speed impacts their willingness to buy from an online retailer.”

https://unbounce.com/page-speed-report/

“Black Friday pulled in $6.22 billion in online sales [last year], up 23.6 percent from [the previous year] and setting a new high, according to Adobe Analytics, which tracks transactions for 80 of the top 100 internet retailers in the U.S. like Walmart and Amazon. Those figures arrived as many retailers have pushed big digital deals, days in advance of the holiday weekend.

The Friday after Thanksgiving [last] year was also the first day in history to see more than $2 billion in sales stemming from smartphones, said Adobe. The group found 33.5 percent of e-commerce sales Friday came from mobile devices, compared with 29.1 percent in 2017.

https://www.cnbc.com/2018/11/24/black-friday-pulled-in-a-record-6point22-billion-in-online-sales-adobe.html

Using data to drive business growth

Using data to drive business growth

AJ and Meaghan recently had the opportunity to have a chat with Bernard Kelvin Clive of the BKC podcast.

It was a great opportunity to get a multi-cultural perspective on business growth and development. Check out the full interview below:

Data is the fuel for business success

In today’s marketplace, every business works in the data business. No matter what business or industry you fall into, data is vital to your success. While many people still think about data in terms of “big data”, every business can capitalize on the data they have.

While almost everyone understands that data has value, few businesses know what data they need to leverage to scale.

When we talk about data, the key point to remember is that data doesn’t involve crazy math or calculations. Data is just information. Eventually, once you have enough information, you can begin to recognize patterns in the data, and predict the future.

Every business has the power to access “big data” at this point. Most programs that businesses use to run their operations contain data on the back end. This includes things like: when your clients buy, how much they buy, what they buy, and so much more. Just having that small amount of information can help you understand your customer journey’s better. Once you understand their journey, you can better market your products and services.

No matter the stage of your business, you can be doing things with data

At Praxis, we often talk about the data maturity spectrum. No matter where your business falls on that spectrum, there are things that you can and should be doing to make sure that you can get the most out of your data.

If you’re at the beginning of your business, this could be pre-revenue or just starting out, the best thing that you can do is start collecting data. Lots of businesses in the start up realm still have CRMs, POS systems, websites, etc. Each of these systems can be a treasure trove of data if you set it up to track data. Most small businesses though don’t take the time to make sure that they have everything set up to track properly.

You can’t create data from scratch

The reason that it’s so important to set these things up early on in your business is because you can’t go back in time and create historical data. So if you find yourself ready to start analyzing data three years from now, and you haven’t set your systems up to track your customers properly, then you have to start completely from scratch.

You can’t make data-driven decisions without data, and you can’t get data without taking the time to set up your tracking.

More is better when it comes to tracking

Even if you don’t have the time to analyze your data, it’s very important that you start tracking it now. The more that you can track, the better. While you may not use all of it in the future, it’s much better to have too much data than too little data.

Whoever has the greatest understanding of their customers will win in the end.

Several of the biggest companies in the world are strictly data companies, and part of the reason that they got so big is because they collected data to better understand their customers.

Data helps you better understand your customers needs and wants; this allows you to better target and attract the right customers, as well as retain your current customers.

As a business owner, data analysis isn’t your responsibility

Your job as the business owner is to make sure that you have properly invested the time and resources into gathering the data. If you’ve done that, you can have specialists analyze the data for what they need. Your marketing team can scour the data for better customer insights, your project management team can find bottlenecks in your processes, etc.

In order to make sure that you track the right things, you need to know what metrics matter. Too many businesses track everything and then get caught in paralysis by analysis. They end up spending time worrying about metrics and numbers that will only make a small difference, if any.

The key to analyzing your data is making sure that you look at the metrics that will yield results for your business.

The best way to find these “needle moving” metrics is to figure out what business questions you need answers to. Generally, you can narrow down the metrics that you need to keep an eye on down to 5-10 metrics. We recommend “leading with revenue”, which means that you should focus on marketing and sales first.

Wrapping up the foundation level

To summarize the foundation level of data maturity, track everything, but don’t feel like you need to analyze everything that you collect. That is reserved for stage 2.

Stage 2: Analysis

Once your business has matured to the point where you want to start leveraging your data, you’ve reached stage 2.

You don’t necessarily need to analyze the data yourself. You can have your team analyze it, agencies that you work with, or you can do it yourself if you’re data inclined.

One way to start analyzing your data is to figure out the business questions that you want to answer.

The number one question we recommend that every business owner ask is “where do my best customers come from?”. Every business should have a clear answer to this question. You should know what marketing efforts create customers that come into your business and stay with your business.

Another way to analyze your data is to just start looking, and then see what questions arise as you look at the data.

Sometimes, by digging into the data, you can spot anomalies or outliers that spark your curiosity.

Many business owners think that they don’t have the time to analyze their data, and that’s why it’s important to set aside time to do it. Make data analysis a priority and chunk out time to at least poke around in the data. You can spend that time looking for answers to questions, or looking for anomalies. Either way, it’s important to keep your finger on the pulse of your business.

Most businesses are just one data-driven decision away from exponential growth

As we said in the last section, it’s very important to at least wade into your data once a week. Additionally though, it’s important that you schedule time to deep dive into your data, at least once a year.

AJ and Meaghan realized during one of these deep-dive sessions the key to exponentially growing their business. They realized that they wrote off hours like crazy in order to keep their clients happy. They over-delivered on their promises to make sure that they had raving fans.

This yielded them happy clients, but when they looked at their numbers, they realized that it had cost them $500,000 across the course of a year. This one thing was preventing them from scaling their business properly.

They decided to start scaling back the amount that they would write off with each client. They decreased how much they would write off each month by just 25%. This caused them to increase their revenues by 350% year-over-year, and their profit margin skyrocketed up by 1,000%! This allowed them to scale their team up to 10X the size that it was.

The definition of insanity is doing the same thing over and over and expecting different results. Until you analyze your data though, it’s hard to know what you need to change.

A positive data-driven decision

We had a client who came to Praxis looking to get better information on the lifetime value of their customers (LTV). They thought that they had an accurate idea of what it was, but wanted to double check to make sure that it was accurate. Together, we discovered that the lifetime value of their customers was much higher than they initially thought. Upon realizing this, they decided to increase their allowable cost per acquisition by just $5. This decision caused the funnel to go from about 12 sales per day to 350 sales per day in just 2 weeks.

From there, the funnel kept expanding, and within a month, they started to average 600 sales per day on this funnel… All from one data-driven decision.

A negative data-driven decision

We had another client who thought that they knew their LTV, but once we got into their data, we discovered that they had overestimated their LTV. Because of this, the company found out that they were actually losing about $3 per customer that they brought in. And they were doing a lot of sales…

Because they sought Praxis help though, they managed to stop the bleed and update their spend to reflect their reality.

The data will tell you what to cut and what to double-down on.

What is the next step, where should businesses go from here?

The answer to that question depends on where you fall on the data maturity spectrum. If you are stuck in phase one, you need to get your tracking set up. If you’re stuck in phase two, you need to determine if you need help understanding the data and taking action from it.

The best thing that everyone can do right now is run an audit of your systems and see where you stand in your business. Diagnose where you fall on the data maturity spectrum, and from there you can see what next steps you need to take.

Another huge thing that helps all companies regardless of size, is to aggregate your data in one place. Some people call this phase “spreadsheet hell”, because it generally requires a lot of spreadsheets. If you want to avoid spreadsheet hell, we recommend leveraging a business intelligence (BI) tool. BI tools are much more expensive than just using spreadsheets, but they also allow you to perform much more complex analysis and leverage the data in new ways.

Tools won’t solve your problems

It’s important to remember that even if you buy a BI tool, it’s not going to solve your data problems. You still need to have your tracking in place, and you still need someone to analyze the data. Additionally, you need to have plans in place to take action on the data. If you see a dip in your data, you should have a plan in place as to how you want to deal with it.

Every company needs to start thinking about their data as one of their most valuable resources.

Data just surpassed oil as the most valuable commodity on the planet. Information is king. If you know more than your competitor does, then you have an opportunity to outmaneuver and outperform them at every turn.

Caesar’s Palace recently went bankrupt. On their balance sheet, they listed out their data as the most valuable asset that they had.

Every interaction with your clients is an opportunity to learn something new. If you’re properly tracking everything, then you can gain insights and scale your business infinitely faster than by going off gut instinct.

The fastest way to scale your business is to figure out what is already working, and double down on it.

What can people do to better use data in the world of branding?

Start tracking creatively. Tracking doesn’t have to just be about how many people came to the website, or how many people clicked a button. You can track anything that you can imagine. We had a client come through who used Instagram as their primary lead source. They went through all of their posts and tracked what colors they used in the post, how they framed the image, the location, everything. They then overlaid this data with their like, share, and comment data to find optimal posts.

Because they had this data, they knew exactly what their customers wanted to see from them and when. This allowed them to double down on the things that worked for them and cut out the waste.

How Meaghan and AJ became a power couple

How Meaghan and AJ became a “power couple”

In this podcast episode, we decided to cover some less common topics.

We cover deep dives into entrepreneurship, how to manage a business and a relationship, and much more.

How did AJ and Meaghan get here?

AJ’s story-

AJ started out as an entrepreneur early in life. He started a “company” called “AJ’s odd jobs” as a child, offering to do household chores for his neighbors. From there, he graduated to selling his family’s agricultural produce door-to-door. Finally, he moved into the technology sphere, building and selling computers; from there, he started a magazine, and then moved on to selling supplements online. While selling supplements, he found that he loved doing data-driven marketing, so he decided to create his own marketing agency.

Meaghan’s story-

Meaghan took a different path. Growing up in a large household with a single mom, the focus was always on finding a job and making it to management. As a way of paying for college, Meaghan sold encyclopedias door-to-door. This exposed her to the idea of being her own boss and “running her own business” while still having the support of an organization behind her. Because of her success in sales, she pivoted into a sales-coaching and consulting role.

Upon meeting AJ, she decided that she wanted to learn more about marketing. At the time, AJ’s business focused on building out funnels for clients. She decided to shadow them to understand what they did for one client from start to finish. She watched them build the landing pages and sales pages, and then watched AJ send out the email campaign.

Once she saw the success that they generated with little effort, she realized that she needed to jump from sales to marketing.

They started working together in the marketing agency together, and found that one of their biggest frustrations was getting data for and to their clients. This frustration eventually led them to the creation of Praxis Metrics. In finding a solution for their reporting, they found that all of their clients wanted to implement that solution for themselves. Eventually, that grew into Praxis Metrics.

How did Meaghan and AJ meet?

They met through a series of mutual friends who thought that they would be perfect together. They say that the universe was trying to get them together for a long time, but they had a hard time with the timing.

Once the timing was right though, they moved quickly, dating for only a few months before moving in together. Then they started running a business together a few months after that.

How do Meaghan and AJ get along so well?

Because they own a data-driven business, they of course are data-driven in their lives. They take personality tests to understand what roles and responsibilities each of them fit into well; they study each other’s love languages to know how to help the other person. And then finally, they took brain scans to understand how their minds work.

Brain scans-

They primarily used the brain scans to better understand how their brains handle stress and stressful situations. They hook you up to the machine, with nodes across your entire head, and then put you through stages of stress and then recovery. By repeating this exercise, they gained a greater understanding of how each of them deals with stress psychologically.

Through these tests, they grew to better understand one another’s needs and why they behave the way that they do.

What advice would Meaghan and AJ give to other “power couples” or business partners?

Clearly delineate roles and responsibilities. This allows you “divide and conquer”. The best way to do this would be to map out each other’s strengths and then assign tasks that align with those strengths. This allows each of you to focus on your “superpower” and achieve individually as well as together.

The other piece of advice would be to communicate. Communication needs to be clear, and concise; and then you need to allow vulnerability in that communication. AJ and Meaghan like to do “check-ins” with one another to really check to see how they’re progressing in their roles as business and relationship partners.

How do AJ and Meaghan break up their professional and personal lives?

At the moment, they don’t really. Since the business is going through a phase of rapid expansion, they are on call all of the time. But they also recognize the importance of decompressing. They recognize when they approach their breaking points, and make sure that they don’t cross that line.

They make sure that when they do take time for themselves, they put away all things related to work and focus on being truly present in the moment.

Even in their professional lives, they work together to make sure that they align and don’t get too wrapped up in one thing or another. Because they have such open communication, they can tell one another when they need to take a break or realign.

Travel-

They also use travel to force themselves to realign and get more into the moment. AJ and Meaghan built Praxis Metrics to allow all of the employees to travel and escape from the routines of office work. They encourage all of their employees to take trips and take advantage of the opportunities that come with working remotely.

Meaghan specifically uses travel to help her remember why they built this business and what their long-term goals are, as she can often get lost in the details. But by traveling, she can create opportunity costs for herself, which forces her to choose what she finds truly important.

Because they have this opportunity cost, it forces them to delegate more, and utilize their time as profitably as possible.

How Meaghan and AJ use NLP to help them focus

By learning NLP (neuro-linguistic programming), AJ and Meaghan worked to understand how their communication styles would differ based off their brain types. Since Meaghan is naturally “chunked down” or in the weeds, it becomes difficult for her to communicate with someone like AJ who naturally “chunks up”. Because they both know about these issues, they developed keywords and phrases to help them better communicate and relate to one another.

What “Bio-hacking” secrets would they recommend?

Meaghan and AJ use biohacking to better understand their bodies, and therefore increase their effectiveness. Because our DNA and our genes are the building blocks of who we are, it’s important to start there. They went to genetic coaches who read their genetic profiles and gave them actionable information on how to maximize the effectiveness of their bodies.

After understanding your genetic code, the next thing that they recommend is to get blood-work done. Generic doctors most likely won’t look at your blood-work to the depth that you need if you truly want to “biohack”.

The point of all of this is to increase the amount of data that you have on your body. The more data that you have, the more of a complete picture you can put together of how to optimize your body. Once you have this data, you can begin to change your lifestyle to better fit your needs.

How to truly get ahead in business and health:

Data will never solve problems; it’s just individualized facts. Data becomes valuable when you get enough of it to create information. Once the information forms a pattern, it can lead to knowledge. By leveraging knowledge, you can predict outcomes, which is wisdom. From there, you can take action on your predictions, which is the definition of Praxis.

What is Praxis Metrics, and what do they do?

Praxis helps businesses transform their data into actionable insights.

Just like the process that we just outlined, Praxis helps businesses take disparate data points, merge them into information, transform that information into recognizable patterns, and then make predictive models based off that.

By gathering all of your data and information together, you can see patterns across seemingly disconnected pieces of data and information, and then leverage that into action, or Praxis.

Big data used to be reserved for the enterprise-level companies, but now almost all businesses have an overload of information available to them. The problem now is deciphering the data and finding the valuable insights.

Praxis Metrics extracts the raw data from the back end of each of the systems in order to guarantee accuracy, and then they merge the data together to help our customers understand how to best take advantage of that information.

The goal of the entire process is to help business owners easily discover hidden areas of opportunities; as well as areas of waste.

Finding these things helps businesses achieve explosive growth. By eliminating the waste, and reallocating it to areas of opportunity, businesses can scale much faster than they thought possible.

Praxis Metrics primarily deals with waste. Praxis’ goal is to help eliminate wasted time, energy, and money. Once you eliminate the waste, your optimization efforts are exponentially more effective.

Praxis Metrics success stories

Praxis had one client that was spending an incredible amount on cold media. They thought came to Praxis asking for the lifetime value of their customers (LTV). Upon drilling into their data though, we helped them realize that they hadn’t taken into account all of their costs, and this meant that they were losing money on every customer that purchased.

Another client thought that they could only afford to spend $15 to acquire their customers. They came to Praxis and we helped them realize that the lifetime value of their customers was much higher than they thought. Based off that information, they increased their CPA by just $5 and saw explosive growth. That funnel ended up increasing in sales by more than 2,000 in a month. Because of this success, they hired a full-time data scientist to their team, and build their own dashboards. One data-driven decision revolutionized their company.

What does working with Praxis look like?

Every project with Praxis starts with assessing the data maturity of the clients. For those in the early stages of data maturity, they most likely need help gathering data. Unfortunately, all of the pretty and cool dashboards in the world do nothing without data.

If the client already has data, generally they have a ton of spreadsheets that they’re working from, and need help with automation. In this stage, we focus on data validation, extraction, and loading it into dashboards. Most of our clients fall into this stage.

The way that Praxis Metrics helps these companies generally is through our pre-built dashboards. As Praxis Metrics grew and worked with several large clients, we found that most businesses have similar needs. The questions that our enterprise clients asked us were the same that SMBs did. What’s working, what’s not, how can I improve, etc. Once we realized this, we began to pre-package dashboards that were built to answer these questions specifically.

This pre-packaging allowed Praxis to greatly reduce the costs of building these dashboards. This opened the doors to smaller clients who previously couldn’t afford these type of insights.

What makes Praxis different from other dashboard companies?

Most dashboard companies only offer the dashboarding software. They have built powerful tools, but once you purchase them, you’re on your own. Praxis Metrics doesn’t have software tools, we act as an outsourced data agency that will help you harness the power of your BI dashboards. We have a team of on-demand data scientists and dashboard engineers available to help you complete your projects; but once they’re built, you don’t have to worry about them anymore.

Most companies can’t afford to keep a data scientist on staff, so we make it so that they can rent one as they need them.

What are the most important metrics that most businesses overlook?

There are a handful of metrics that most companies overlook, and they all interact.

Number one is the customer acquisition cost (CAC), specifically broken down by source.

Number two is the lifetime value of customers (LTV), also broken down by source. This one is particularly difficult for most ecommerce companies, as most are omni-channel, and that makes the reporting more difficult.

Number three is days to cancellation, viewed as a cohort analysis, not an average. Averages are inherently evil because they smash together all of the highs and the lows in order to give you one number. The cohort analysis allows you to see a bell-curve of the data, allowing you to better understand the spikes and valleys of your subscriptions, rather than one static number.

Number four would be the cost of goods sold (COGS). Many businesses struggle to get the true costs of each of their products because of bulk shipping or bulk ordering systems. Excel has a hard time breaking things down to that granular of a level, but a robust business intelligence tool can perform those complex calculations and give you the true cost of each of your products on a daily basis.

What are weird things that AJ and Meaghan eat and drink?

Meaghan-

Pickle juice. Because she never drinks enough water, she uses pickle juice to boost the cellular water absorption so that the little water that she drinks actually gets where it needs to go.

How do Meaghan and AJ enter a state of flow?

AJ-

Hypnosis. They have an app that they use that helps them to focus in and reach their subconscious and tap into the state of flow.

Meaghan-

Wake surfing. Meaghan uses the outdoors and solo sports to help her reach her state of flow.

What habit or opinion do they have that other people disagree with?

AJ-

AJ believes that people are the most important resource on the planet. Many people believe that money or time are the most important things, but AJ believes that people are the most important.

Meaghan-

Meaghan believes that she is the most important resource on the planet…

If AJ and Meaghan ran a school, but could only teach one, non-traditional lesson, what would it be?

AJ-

AJ would teach people the basics of understanding their bodies and how to think about things rather than what to think.

Meaghan-

Meaghan would teach about the theory of how to make time travel possible.

What books had the greatest impact on them?

AJ-

“I dare you”, by William Danforth when he was younger.

And now, it would be “The one thing”, by Jay Papasan and Gary Keller.

Meaghan-

Meaghan also chose “The one thing”, by Jay Papasan and Gary Keller. That helped her to realize how much of a procrastinator she was as well as how unproductive she was. And then it helped her break out of those habits.

Meaghan’s second choice was “The power of now”, by Eckhart Tolle. This helped her to become much more present in the moment.

Both-

“Letting go”, by David Hawkins. This helped them understand the different vibrational frequencies that we resonate at, and helped them to find better motivation and emotional stability.

What do the first 30 minutes of their days look like?

AJ-

Gratitude, showering (cold), and then mediation.

Meaghan-

Just jumps right into work. She starts looking at emails in bed, and then looks at her calendar to see when she can squeeze those things in.

Since her mornings are the most productive time for her, she wants to get the most important things done quickly, and then deal with tedious, less important work later in the day.

What advice would they give to their previous bosses?

AJ-

AJ never really had a boss, but he would recommend understanding and learning their employees very well. Not just personalities, but what gets them excited and motivated.

Meaghan-

Meaghan would start by saying that she was sorry, because she never truly lived up to her potential working for someone else. And then thank them for the opportunities that they gave her. Finally, she would recommend that they invest in the tools necessary to help their employees and people reach their fullest potential.

Where do they go and what do they do to get inspired?

AJ-

Meaghan is his daily inspiration. Then comes nature, and their trips. Those all get him inspired and excited.

Meaghan-

Numbers inspire Meaghan and get her excited. Nature also inspires her.

If they had 24 hours to make an extra $5,000 how would they do it?

Meaghan-

Meaghan said that if this were a little while ago, she would have invested it in Crypto-currency.

AJ-

AJ would borrow their friend, Mike’s boat and take people out on the lake and teach them to wake-surf. Meaghan is an excellent wake-surfing instructor and AJ is a skilled driver. They have a 100% success rate in getting people up between the two of them.

They would combine the fun of the boat with NLP coaching, and business coaching; and that would allow them to quickly raise that money.

What’s the best advice ever given to them?

Meaghan-

The best “advice” that Meaghan ever got was from a mentor who told her that she had no integrity. They pointed out that integrity means doing what you say you will do, even if nobody holds you accountable.

He told her to examine her checkbook and her calendar to see what she actually valued, as what you spend your time and money on truly shows your values. Upon examining hers, she realized that she wasn’t being honest with herself about what her priorities were, and worked to bring what she said her priorities were into alignment with her true priorities.

The advice that he actually gave her was that at any point, your time and your money need to be in alignment with what you claim your goals are.

AJ-

AJ’s grandfather taught and showed by his example that you should always leave people better than when you met them. No matter who they are, they should always be better because they met you.

What silly thing should people do more of?

AJ-

Laugh at themselves, and dance however you want. AJ apparently makes good practice of this every day, gyrating in a “bizarre” way at Meaghan.

Meaghan-

Definitely dance, and allow yourself to release and just let the music flow through you.

Would they rather fight one horse-sized duck, or 100 duck sized horses?

AJ-

One large duck. Because he wants to conquer it and then befriend and ride it.

Meaghan-

Thought AJ was completely wrong. She wants to be able to lord over the tiny horses and crush them as their god.

How would they go about convincing someone to do something good that they didn’t want to do?

Both-

Chunk up! Tie the thing that they don’t want to do to something higher and help them to see that this really is the best thing for them.

If you can find a higher purpose that you both agree on and then help them to see how this task ties into that higher purpose, then they will most likely perform the task.

Apart from eachother, what makes Meaghan and AJ happiest?

Meaghan-

New adventures. There are chemical changes that occur in the brain when you experience something new, and Meaghan has trained her brain to crave those chemicals, so that makes her very happy.

AJ-

Having new experiences with people. AJ derives a lot of value from people, so it’s important for him to be around others and experience new things with them.

What can people do?

AJ-

Reach out to Praxis Metrics! Our primary vision and purpose is to help other businesses grow and realize their potential through data; so if you have data questions or concerns, reach out and we’ll do our best to help.

Meaghan-

Make sure that you have your tracking set up. Once you have the tracking in order, everything else can fall into place later, but you can’t make up data that doesn’t exist.

Praxis Metrics- Leveraging data to optimize ad spend

Praxis Metrics – Leveraging data to optimize ad spend

In this guest appearance on the Perpetual Traffic podcast, AJ and Meaghan talk about how to use your data to optimize your ad spend, and rapidly scale your business.

They cover everything from getting your tracking in order, all the way up to creating customized dashboards and leveraging complex machine learning and AI.

Enjoy the episode and our insights below.

The struggle today-

Many marketers feel that they aren’t getting the most accurate data inside of the ad platforms. Unfortunately, they are completely correct. Some marketers go so far as to purchase a cheap dashboarding tool in order to help them bring all of their metrics together into one platform in order to help them with this issue. Unfortunately, this will not solve the problem for them at all.

Why do we suddenly have this struggle with data? What drove us to this point?

In our opinion, the problem stems from an overabundance of data. Never in the history of the world has so much data been available to us. Even in the last 20-30 years, large-scale data projects were reserved exclusively for enterprise-level companies. But now, every company has access to “big data”; despite this, many still have the mentality that their business doesn’t have the same access to data, and therefore the same opportunities and responsibilities, as the larger organizations.

Because these smaller businesses fail to leverage the data available to them, they often find themselves utilizing incomplete or dirty data. If they utilized all of the tools and tracking options available to them, they would have a much more complete and accurate picture of what’s happening.

The opportunity today-

Similar to the dot-com boom of the late 90’s, we’re seeing a “data boom” today. Those that have embraced data and created strategic initiatives around data are already separating themselves from their competition. Taking action from data is the new competitive advantage.

Those who capitalize on data have the opportunity to outpace and out-scale their competitors. John Wanamaker said: “Half the money I spend on advertising is wasted; the trouble is I don’t know which half.”. Those who eliminate waste in their budget open themselves to amazing opportunities. By doubling or quadrupling down on the things that work, they can drive exponential growth.

How you can capitalize on this opportunity-

Ask the right questions-

We firmly believe in the Socratic method. Asking questions helps you find deeper truths. The trick is finding the right questions to ask that will propel your business forward.

We found that the best way to find these questions is through a process called “metrics mapping”. The diagram below walks through an example:

Praxis Metrics- Metrics Mapping

Metrics Mapping starts with the big goals of your organization. This could include doubling your revenue year over year, increasing sales of a certain product by 30%, etc. From there, we want to drill down to the questions that you need to answer in order to meet that goal. If you want to double your revenue, then why don’t you? What questions do you need to answer in order to hit your goal?

Once you have the questions that you need to answer, it’s time to figure out what numbers can help you answer that question. In the example above, we need to know how to increase conversions and revenue from the website. In order to figure out how to do that, we need to figure out conversion rates, LTV, CPA, and profitability.

Once we have asked the right questions and gathered the necessary data, we need to:

Get granular with it-

Averages are inherently evil. Averages by definition mash together your highs and your lows and give you one number to work with. In order to properly scale your business, you need to know what creates the highs and what creates the lows. Once you know that, you can scrap the things that bring in the lows and double down on the highs.

Going back to the previous example; once we’ve gathered the numbers, we can strategize our next move. Perhaps we need to update our nurture sequence to increase return purchases. We may have a funnel step that causes dramatic drop-off that we can eliminate.

By getting granular in our analysis, we can discover a myriad of opportunities.

What metrics should every business look at?

Every business suffers from “terminal uniqueness”. While every business has certain things that they specifically need to track, there are a host of metrics that every business should know.

The obvious metrics that fall into this category are ad spend, return on ad spend, etc. In addition to these, businesses should also look at cost of goods sold (COGS), shipping expenses, and overhead. Many businesses forget to factor these costs when they look at what their allowable cost per acquisition can be.

This allows you to look at your return on ad spend through the lens of profitability, rather than just revenue generated.

What is the biggest problem businesses have with reporting?

Over-attribution. We see this issue with almost every client that we work with. Facebook, Google, and every other ad platform utilizes different attribution models. Generally, the platform will leverage an attribution model that favors them, and makes them look the best.

So Facebook utilizes an attribution window, meaning that if someone clicks on your ad, and then returns to your site within 28 days, they will claim that they produced 100% of the revenue from that client. Google defaults to last-touch attribution modeling, meaning that wherever that user came from when they made the purchase receives 100% credit for the revenue of that client. Other platforms count view-through conversions combined with an attribution window, meaning that if they saw your ad and then purchased within a certain time frame, that platform claims credit for that sale.

This scenario can lead to multiple ad platforms claiming that they are responsible for the exact same sale.

How do we combat this issue?

If you’re interested in learning more on this subject, we have a separate blog post on ways that every business can work through the over-attribution problem here.

In addition to those tips, our biggest suggestion for fixing this issue is getting a multi-source business intelligence tool. By extracting data from the back end of each of the ad systems, you can piece together a client’s journey and create your own attribution models. This allows you to see your true customer journey, rather than just a simple metric provided to you by a biased platform.

Unfortunately, even that solution relies heavily on the tracking that you have in place. If your tracking hasn’t been set up properly, then you have to rely on the data reported by these platforms, rather than leveraging and creating your own.

Your output is only as good as your inputs-

It doesn’t matter how much you spend on your powerful tools, they still rely on the data that you give to them. If your tracking isn’t set up properly, it’s impossible for a dashboard to correct that for you.

Powerful insights require great data. And unfortunately, good data requires great tracking.

Good news though, if you can get your tracking nailed down properly, then everything else glides into place. The old adage of “measure twice, cut once” applies to data as much as carpentry.

Going back to the metrics mapping process, we want to help you find the “source of truth” for every metric that you measure.

The “source of truth”-

Every metric should have a place where the definitive answer lives. If you want to know how much revenue you’ve brought in over the last month, you can check your bank account, or Stripe, or Paypal. If you want to know how long visitors from Instagram stay on your website, Google Analytics could help you find that answer.

Each data platform specializes in different data points, and we want to get the best data from the best sources.

Where to begin?

We recommend that every business start with the projects that will move the needle for the business. This generally means starting with sales and marketing initiatives, as they generate revenue for the rest of the business.

We have been shocked at how many issues businesses solve by getting their data set up properly for sales and marketing. Also, by leading with these departments, we can generally start to uncover holes in other parts of the business. If we see a spike in cancellations that coincides with customer survey emails, we know that we clearly have something to fix there.

It’s important to remember with every data initiative that it’s a journey. As much as we wish that we could fix every data problem overnight, it takes time to solve these issues and answer these questions. From there, we need to take action from the insights that we gained, and then we can see the results.

Leverage your uniqueness into growth-

As we stated earlier, every business suffers from terminal uniqueness. While this can complicate projects, that is also the place where you can see the greatest results.

By leveraging your uniqueness in the things that you track, you can get extremely granular, and explode your business in ways that others can’t.

One of our clients, Fancy Sprinkles, found amazing insights by tracking what no one else bothered to track.

Fancy Sprinkles, which does exactly what their name sounds like, gets most of their leads from Instagram. They decided to go back through every post that they had ever done and manually put into a spreadsheet the variables of the post. They tracked whether the product was shot indoors or outdoors, close or at a distance, color palettes, everything.

When they overlaid this data with their social media engagement rates over time, they found amazing insights. During October, they assumed that they should post something orange and black to capitalize on the holiday. But after consulting their data, they quickly realized that those colors got the worst engagement in October. The data told them that they should use purple and green, outdoors, and close-up. Their engagement skyrocketed because of these insights.

Tracking may require an up-front investment. Fancy Sprinkles needed interns to work for hours to catalog all of that data, but once they had the historical data, it became much easier to simply input those data points on every post that they made.

When should people seek help with their data?

As soon as it gets annoying or frustrating.

This may seem simplistic, but it doesn’t make sense for you to abandon your superpowers only to beat your head against a wall.

Your company hired you because of your skillset, and if data doesn’t fall into that skillset, it’s better to outsource that than to take away time and energy from the things that you do best.

What should businesses have in place before consulting with Praxis?

We built Praxis to meet companies wherever they are on the data maturity spectrum.

If you need help with your tracking, we offer Google Analytics audits and implementations. We even have courses that can walk you through setting up your tracking at your own pace.

If you already have your tracking in order and want to move on to scaling your business and gleaning better insights, then we offer pre-built dashboards that can help you start leveraging your data into growth.

If you have issues unique to your market or business that you need specific help on, we offer custom dashboards and implementations that we can build from scratch to better suit your needs.

Praxis Metrics- How to 10X your company using data and dashboards

How to 10X your business with data and dashboards

In this guest appearance on Mike Dillard’s Self Made Man podcast, AJ and Meaghan talk about how to rapidly scale your business using data and dashboards.

They cover everything from the data maturity spectrum to metrics mapping, tracking, UTMs, and how to combine these things for rapid growth in your business.

Check out the full episode below along with our summary of key takeaways.

How did Praxis get started?

Prior to starting Praxis, AJ and Meaghan created a data-driven digital marketing agency. They quickly found though that reporting on their marketing efforts was taking more time that actually implementing their strategies. Because of this, they began researching automated solutions to the reporting problem. Once they finally created a solution, they found that more people needed that solution than needed marketing help.

They decided to pivot and become an outsourced data agency, and Praxis Metrics was born.

Initially they courted enterprise-level clients because those clients were they only ones seeking out “big data” at the time. However, as time passed, they realized that they gained more satisfaction from helping SMBs achieve their potential through data. So they began to provide the same powerful insights and dashboards that they had built for the enterprise clients to smaller businesses.

What are the biggest takeaways from working with such a diverse group of clients?

SMB business owners need the same questions answered as the enterprise companies. While they may look at them through different lenses and different granularity, the questions remain the same.

The number one question that every client asks is, “how much can I spend to acquire my customers?”. Generally, the next questions asked are: “how much are those customers worth over time?” and “where and what do they purchase from me?”.

These questions all stem from the same desire: understanding your core customers, and how to best serve them.

It all boils down to what is and isn’t working in your business right now.

What are some of the biggest differences in SMBs and enterprise companies?

Enterprise companies recognize how much data they have, and the value of that data. SMBs often downplay the amount and value of the data that they already have.

Most SMBs don’t realize that even just having timestamps of when your customers purchase provides valuable insights to the business. This lets you know the times when your purchasers will be most receptive to your messages and most likely to purchase your products.

What difficulties do businesses face with their data?

Trusting your data is the key to gaining good insights. If you don’t trust your data, then the prettiest dashboard in the world will not help you.

You need to have the confidence to take action from your data; otherwise it’s like having gasoline but no car. You won’t get anywhere with that.

We’ve seen a multitude of dashboard companies that sell businesses on the visuals of their dashboards alone, but without fixing the underlying data issues, they end up providing very little value to their customers.

Time constraints

Many SMBs say that they simply don’t have the time to get their data in order; but we preach the opposite. The best time to set up your tracking and make sure that you gather clean, accurate data is before you have too much of it. As your organization scales and grows, the amount of clean-up required in order to get your data in order scales as well. If you make a concerted effort in the beginning to get clean, accurate data that you can trust, your business will scale faster. And when the time comes to transition into dashboards and advanced analytics, your data will be ready and actionable, saving you valuable time and money.

Every business has the time to sit down and set up standard operating procedures (SOPs) for their business. Setting down SOPs is especially important when it comes to UTMs. If you can lay down the groundwork early on for standardized tracking, you can gain amazing insights on how to communicate effectively with your clients.

UTMs will tell you what types of content your customers like to engage with, it will tell you the specific mediums that they like to engage with your business on, and it will help you eliminate the issue of over-attribution in your tracking. If you want to learn more about over-attribution, and how that affects businesses, visit Praxis Metrics – How to win the attribution war to read more.

How do we lay the foundation for the future?

Even if you don’t have the time to analyze the data yet, it’s imperative that you begin tracking your customers and their behavior. You can’t retroactively gather data from your customers. When it gets to the point that you want to begin retargeting campaigns, or analyzing your customer behaviors, if you didn’t set up your tracking you won’t have any information to go off.

When they begin advertising, many businesses start with a shotgun approach. They distribute their spend equally across the most popular platforms without knowing which one will drive the best results for their business. If you track your customer behaviors over time, they will show you where they like to engage with you. You can know whether you get the highest traffic from Facebook or Instagram or Linkedin.

What are some of the data success stories that Praxis has seen?

Danette May-

Danette May wanted to see the true lifetime value of their customers to see if they could scale a funnel. They knew that the funnel converted well with retargeting, but they had a hard time getting the same response from cold traffic. They had an idea of the LTV of their customers, but they wanted to verify.

We found that their customers actually had a much higher LTV than they thought. This allowed them to increase their allowable cost per acquisition (CPA) by $5. This change caused them to take an initial loss on the first product sold, but they also knew that within 30 days, these clients would return and spend much more on other products.

This change drove them from 15 sales per day on this product to more than 350 sales per day in less than two weeks. Within a month, they were selling more than 600 units per day.

If you’d like to learn more about Danette May’s journey and how this information helped them transform their business, we have an entire case study on them here.

Fancy Sprinkles-

We built a social media dashboard for Fancy Sprinkles that allowed them to drill down to see what kinds of posts received the most engagements over time. By tagging all of their posts with series of metadata: I.E. indoor vs outdoor shot, colors used, theme, etc.

Because of this metadata, they found that during Halloween the top performing posts contained purple or green, were shot outdoors, and had close-ups of the products. Naturally, this ran completely counter to everyone’s instincts, but it allowed them to provide their audience with content that they actually wanted to engage with. Because they had this data, they outpaced their competitors in engagement and attention.

What are some of the data failure stories that Praxis has seen?

We’ve had clients who utilized free shipping discounts in order to better compete with Amazon. These clients assumed that this would inspire higher customer loyalty, and create repeat customers. Unfortunately, when we cleaned and examined their data, we found that this wasn’t the case at all.

This assumption was costing them dearly over time, preventing them from properly scaling, and could have driven them out of business if it had gone on for too long.

The key to success is listening to your data.

The most viewed person on Facebook was a magician who simply did magic tricks in front of his webcam in a coffee shop. He managed to scale his brand and following by tracking the videos that performed best and then replicating the factors in those posts over time.

Data doesn’t have to include machine learning, or advanced AI algorithms. A simple excel sheet that analyzes data points can drive more success than multi-million dollar solutions.

If you don’t analyze your data to see what works and what doesn’t; your competitors will analyze that data, and eventually overtake you because of your failure to capitalize. Data has the power to topple huge organizations like Barnes and Nobles or Blockbuster, and the pace of change is only accelerating.

Who does Praxis work with, and how can they prepare?

We have historically worked with enterprise companies; so we can work with larger organizations, but our passion is working with SMBs and helping them rapidly scale their businesses.

We have brought the “big data” insights to the SMB market by finding the common threads between every implementation that we have done for these enterprise companies. By finding the common questions that everyone has, we have built out plug-and-play dashboards that can help answer those questions. Because these dashboards require very little ramp-up or custom coding, we can offer them for a much lower price than normal, and roll them out much faster.

These dashboards answer some of the fundamental business questions that every business needs to know: what is the LTV of my customers, how are my subscription services trending over time, what products drive the most revenue and value, etc. We extract this data from multiple sources, ensuring that you get the most accurate and valuable data.

Our pricing ranges from $500-$1500 per month for platform costs, and then we just charge hourly for any work to build out the dashboards and connect to data sources.

Preparation-

We meet our clients wherever they are on the data maturity spectrum. A lot of our clients come to us and they need help getting their tracking in order before they move onto dashboards. We offer services to help with that. No matter what your data needs are, we can help you get from where you currently are to where you want to be.

If you need help diagnosing your data needs, we offer free, personalized data roadmaps to clarify the next steps for your business.

Praxis Metrics- How to set yourself apart with data

How to use your data to set yourself apart

In today’s market, businesses are a dime a dozen. Virtually anyone can start a business from a laptop in a coffee shop. The question is, how do you break through that noise, get in front of your customers and get them to purchase from you?

We’ll cover those questions and more in this podcast episode from the A-Game Advantage.

Don’t work in your business; instead, work on your business

As an entrepreneur, it’s easy to get caught up in all of the things that you need to do. Everyone has a to-do list that could last a lifetime. The problem is that entrepreneurs often get too caught up in their to-do lists.

We often hear from business owners that “someone needs to do it”, so they do it themselves. They often get stuck in the mindset of when they started the business; if they didn’t do it, no one would.

While it’s extremely important to continue to hustle and set an example of hard work, you need to make sure that your time is being utilized effectively. Too many small business leaders don’t make time to leverage their superpowers for the business.

This was the exact problem that our friend AJ Vaden struggled with in her business. She used to spend hours working with her accountant to figure out the commissions for her employees, contractors and affiliates every month.

She knew that she wasn’t properly utilizing her time by looking through reports, exporting information into spreadsheets, and analyzing it; but she felt like if she didn’t, no one would. Every hour she spent on manual reports took her away from her true value in the business, and carried a HUGE opportunity cost.

Unfortunately, many owners, marketers, and managers feel this same way. They force themselves to do redundant tasks like report generation because they NEED the insights from the reports they create. Valuable information lies cross-platform, so they build manual excel sheets in order to pull fragmented pieces of information together so that they can make better business decisions.

How do you escape the cycle?

There are two simple options when it comes to making the switch from working in your business to on your business: automate or delegate.

Both of those options have their pros and cons. Automation tends to cost more in up-front investment, but pays off handsomely over time. Delegation has a lower introductory cost, and can help you find new talent for your business; but you’re still relying on humans to do the work. Humans tend to cost more than machines over time, and they make more errors. So, by now you may be wondering what our friend AJ decided to do.

She decided that in order to scale, they needed to automate out their reporting. She decided that she wanted a long-term solution that would scale with her business. So, we helped them create custom dashboards that automatically calculated commissions, and took care of specific, one-off scenarios that used to take hours to figure out. They went from 10 hours down to one hour of manual work per month; saving them tens of thousands per month in costs.

You can read more about the solution that Praxis Metrics built, and how it impacted their business here: Praxis Metrics Case Study – Brand Builders Group

Don’t discount your data

Big businesses would like for SMBs to believe that somehow they have more knowledge and information than them. While large companies may have more historical data, SMBs now have access to treasure troves of information. Between tags, pixels, and cookies, you can get an unbelievable amount of data on how your customers interact with your brand.

There are several reasons that businesses may struggle with their data:

1- They’re overwhelmed

As we talked about earlier, there is a ton of data out there. It’s hard to determine what is useful information and what is just noise.

If you struggle with this, don’t worry, that’s a common issue to have. We have helped hundreds of companies through this issue with a process called “Metrics Mapping”. Metrics Mapping helps you find the metrics that you need to measure and cut out the vanity metrics.

The process for Metrics Mapping is very simple. Start with your high-level business objectives and goals. From there, determine what questions you need answered in order to hit that goal. In the example below, we want to double our revenue over the next year. We then need to ask, “How do we increase conversions off the site?”.

From there, we need to look for the metrics that will answer this question for us. We decided that the most important numbers for website conversions were conversion rates, customer lifetime value, acquisition costs, and profitability.

Praxis Metrics- Metrics Mapping

By simplifying the metrics that you need to measure down to the bare essentials, you can eliminate a lot of the confusion and fear that accompanies dealing with data analysis.

2- Fear of what the data will tell you

Another thing that can help reduce the stress of dealing with data is viewing it as a story. All data tells a story, but sometimes we don’t want to hear that story. If you never look at your numbers, it’s very easy to deceive yourself into thinking that things are one way, when they’re really very different.

It’s important to be able to step back, remove emotion from the equation, and analyze your data with fresh eyes.

Those who ask the important questions, such as what’s working and what’s not working, are the ones who are able to set themselves apart from the competition.

If you’re not looking at your data, your competitors are

What drove Blockbuster and Barnes and Nobles out of business? Failure to adapt to a changing landscape. Right now the landscape is shifting beneath our feet. Data just surpassed oil as the most valuable commodity in the world, and several high-level acquisitions for data companies have been announced by Google and Salesforce, totaling $18.3 billion dollars.

Your data is extremely valuable, whether or not you choose to use it. Some businesses get lucky and manage to grow their business without leveraging their data; but that’s generally because they have a great product or service and just stumble into success. They succeed in spite of themselves. If they actually leveraged their data, they could be at the top of their respective markets.

The 80/20 rule

80% of your results are driven by 20% of your efforts. Your data can tell you which 20% is driving the results, allowing you to double down on the things that create real value for your business, rather than chasing vanity metrics that do nothing for your business. Businesses that capitalize on this can double or quadruple the results that they see, not because they increase their efforts, and not because the increase their budget; but because they increase their understanding and knowledge.

This divide between the data-driven and the non-data-driven is separating the market drastically. Those capitalizing on their data are quickly becoming the 20% collecting 80% of the revenue.

How to begin taking advantage of  your data

Your output is only as good as your input.

Everything starts with your tracking. If you don’t have accurate tracking in order, then you can’t make good decisions off of your data. The most important place to start is with your revenue metrics. We recommend that companies get their tracking in order for marketing and sales so that they can see an accurate picture of the financial health of their company.

The question you need to be able to answer is “What are you doing in your business right now that is working?”. So you need to start tracking where your conversions come from. Do you convert referrals better than direct traffic, Google ads better than Facebook ads, email better than social?

For most companies, this information is already being collected for you by various software tools. The trick is finding where it’s tracking, making sure that it’s accurate, and then analyzing it for insights.

The mistake that most small businesses make is ignoring their tracking. They either think that they’re too small to worry about it, or they think that it’ll be ok if they just implement it later. The problem with this is that when you finally get to the point where you want to utilize the data, you won’t have any data.

Tracking is the foundation for data.

Even if you’re not ready for “big data”, or even to analyze it, it’s important that you start to track your data. Even if you’re not using it now, a few years down the line, you’ll be very grateful that you gathered that data so that you can glean important insights from it.

What tools should you use?

On the marketing side, you need to have Google Analytics set up on your site. Google Analytics provides answers to some of the most important tracking questions that you can have. The only downside to this tool is that it’s notoriously difficult to set up properly, and it can be difficult to find the data that you’re looking for if you’ve never used it before.

We recommend having an expert help you install and set up your Google Analytics. We offer that service if you are interested.

In addition to Google Analytics, Google Tag Manager is a free tool that will help you manage all of the other tracking codes that you want to apply to your website. From Facebook pixels to LinkedIn advertising, every platform has their own proprietary tracking, and all of that can get messy on the back end of your website. Google Tag manager helps to keep the code that you have to install on your site minimal, and keeps your tracking organized.

On the sales side, you need to have a CRM set up that allows you to track your sales, clients, how they found you, and your sales cycles.

What changes when a business starts really tracking their data?

Growth

When a business starts focusing on their data, they speed up their time to value and their scalability. If there are two businesses that sell the same products, the one that understands what does and doesn’t work for their business will be able to eliminate waste from their organization much faster, and therefore bring in higher returns from every investment that they make.

We have seen companies that were planning to reach $50 million in revenue in 5 years scale that number down to 12 months because they started to double down on the things that work and eliminating the things that didn’t. By understanding their customers and what resonates with them, they were able to rapidly scale their business simply by doubling down on the things that are already yielding results.

We had one client who wanted to know one specific question: what was the lifetime value of their customers. They came to us for help with this question, and we helped them discover that they had greatly underestimated the value of their customers over time. So they decided to increase their allowable cost per acquisition by just $5. This decision helped them increase the number of sales from 15 sales per day to over 300 in less than a month. From there, their numbers kept rising, and now that one funnel brings in more than a million dollars per year in revenue.

Praxis Metrics- Danette May LTV Revenue

This client was able to see that level of transformation off of just one metric, and one simple question.

Relief

So many entrepreneurs come to us at their wits end. They push themselves to the brink trying to grow and scale their business; but once they understand the things that they don’t work, they’re able to stop worrying about that and stop dedicating time to it. This allows them to focus in on the things that provide value to their business, and it rapidly simplifies their lives.

One of the primary goals of this process is eliminating waste. Eliminate the 80% of things that eat up your time and energy, and focus in on the 20% of things that are providing real value to your organization. Doing this helps you reclaim your time, and allows you to increase the value of your output dramatically.

How to use data to stand out to investors

We work with a lot of VC firms who talk about how helpful this data is when analyzing their companies. The data helps them understand the story of the company. Having data helps these investment firms understand the true potential of these companies, and helps them apply the 80/20 rule in the businesses that they invest in. They can focus on the 20% of their companies that produce the highest results for them, and then stop investing in the 80% that underperform.

Having all of your data in order also helps when trying to pitch investors. Many investment firms have teams that they use in order to validate your data, but if you can show them exactly where the data comes from and how it’s validated already, it will put you head and shoulders above your competition.

How to use data to help you in your daily life

Health and fitness are an easy way to start leveraging data in your life. There are an infinite number of metrics that you can use to measure your health: from weight to pant size, the number of reps that you perform at the gym to your cholesterol levels.

One of the more obscure ways to leverage data in your everyday life though is in your relationships. By leveraging data in your relationship, you can start to track where your points of conflicts are, then you can start to drill down into why that conflict is occurring, and finally learn how to prevent it from happening again.

The goal of data is to leverage it into changing human behavior; both in business and in relationships.

If you look at your calendar and your checkbook, you’ll quickly see where your priorities truly lie.

Visit us here to see how you can leverage your data into growth.

Praxis Metrics- Are you getting the most out of your ecommerce data?

Are you getting the most out of your ecommerce analytics?

What can your data do for you?

Your data may be the most valuable asset in your organization. The question that you need to answer is, “Are you getting the value out of it?”

In our guest appearance on the JetRails podcast, we cover everything from what metrics are actually important to growing ecommerce businesses, to how to make sure that you’re prepared against the upcoming data privacy changes. Check out the episode and our insights below:

What does Praxis Metrics do?

Praxis is an outsourced data team. We specialize in helping businesses gather, store, validate, and visualize their data. As data becomes more and more valuable, we help remove the strain of having to extract that value. Our goal is to help you understand your data in a way that makes it actionable, scalable, and valuable.

Many businesses think that they can’t compete with the big businesses with their “big data”, but as with all things, data intelligence has funneled down to the SMB market. This shift allows any business to take control of their data from inception and use it to rapidly scale.

Why did Praxis start?

Prior to starting Praxis, AJ and Meaghan created a digital marketing agency. They quickly found though that reporting on their marketing efforts was taking more time that actually implementing their strategies. Because of this, they began researching automated solutions to the reporting problem. Once they finally created a solution, they found that more people needed that solution than needed marketing help.

They decided to pivot and become an outsourced data agency, and Praxis Metrics was born.

What is the solution they created?

In creating their automated reporting system, Meaghan and AJ found ways to pull in data from all of the platforms and data silos of a business, allowing businesses to see all of their data gathered and aggregated in one place. A “command center” of sorts. This “command center” helps solve many common issues that ecommerce companies regularly face.

Where does the name “Praxis Metrics” come from?

The term “Praxis” comes from Aristotle’s foundational truths. He believed that there were three main constructs of man: Theory- which is thinking about things, Theoria- which takes the information that you thought about in theory and combining them together to create knowledge, and then there is Praxis- which is the practical application of the knowledge and wisdom that you gained by combining your theories and knowledge together.

Praxis Metrics- Data Maturity Scale

The process of Praxis is simple: data leads to information. Information can be turned into knowledge. Knowledge then transitions into wisdom. And taking action from that wisdom is praxis.

Data never solves a company’s problems. Data simply points out facts. You need to interpret those facts and find the driving force. Once you understand the driving forces, you can take action to impact those forces. Your actions are the only thing that will change your business. The practical application (praxis) of your wisdom will help you scale your business; not your data.

The goal of Praxis Metrics is to give businesses data that they can take action from. We want for everyone to leverage their data into action that helps them grow their business.

Every metric should have an action tied to it. Metrics without action tied to them are just vanity metrics.

How can I take strategic action from my data?

We start every client journey with a process called “metrics mapping”. Metrics mapping allows us to figure out what data you actually need to gather in order to reach praxis.

Pictured below is an example of the process of metrics mapping:

Praxis Metrics- Metrics Mapping

Metrics mapping starts with the goals that your business wants to achieve. In this example, this company wanted to double their revenue year over year. Once you have your goals in mind, you need to start asking the questions that will lead you to that goal. In this case, they need to increase conversions on their website in order to reach their goal. The question that they need to answer is, “how?”.

Once we know the questions that we need answers to, we know the metrics that we need to pull. We’ll begin pulling the metrics that help us answer the question: conversion rates, customer LTV, acquisition costs, and profitability.

From there, we need to find the “source of truth” for each of these metrics. The source of truth is the place where we can find the most accurate data. For financial data, this can be your bank account, Stripe, or Paypal. For traffic data, it could be Google Analytics, or the back end of your website. The point of this stage is to find the most accurate data source to pull from.

The rest of the steps would be carried out with the help of the Praxis team as we help you build out your dashboards.

How do I justify spending money on data?

It’s important to remember that data is an investment, not a cost center. Data recently surpassed oil as the most valuable resource on the planet, so any investment that you make into harvesting, leveraging, and improving your data should return massive dividends if implemented properly.

There’s a reason that data is now recognized as “king”. It has the power to create and destroy massive corporations, swing elections, and generate untold wealth for those who leverage it properly. If you know why something happened and your competitor doesn’t, you can pivot and adjust in order to take advantage of their ignorance.

Taking action from data is the new competitive advantage.

Companies that capitalize on data will scale, those who do not will fail. Speaking about the hurricanes, they mentioned that Walmart and Target were receiving huge shipments of Pop-Tarts, as they know that they are a staple during hurricanes.

Many businesses think that big data is reserved for enterprise-level companies; but tools have gotten cheaper, talent has gotten more affordable, and data has become more plentiful. One of the goals of Praxis is to bring those big, enterprise-level insights down to the SMB market and help them see hockey-stick growth.

Before you begin investing in your data though, it’s important that you know where you should invest your money. That is where the data maturity spectrum comes into play.

What is the data maturity spectrum?

The data maturity spectrum helps you identify where you are, and what your current data priorities should be.

The Foundation Stage-

In the foundation stage, everything revolves around tracking. You can’t analyze data if you don’t have data; so you need to make sure that you gather the data that you need in this stage.

Praxis Metrics- Data maturity stage one

Many companies ignore this step until they’re looking to move to the next stage. Unfortunately, by that time they’ve lost out on all of their historical data. We see many businesses come to us that want to build out amazing dashboards, but we discover that they haven’t tracked the data until this point. That means that they have lost out on years of data that could provide crucial context to the data that they gather from here forward.

Too many businesses want to get started, and push to start selling before they set up their tracking; but they need to realize that you cannot retroactively track. Any changes that you make to your tracking only adds data moving forward, and any data that you missed out on previously is lost.

Revenues do not determine your place on the data maturity scale, the only thing that matters on this scale is how well you handle your data.

What are the questions that you will have in the future?

You need to think on what things you may want to know in the future, and start tracking those things today. It may seem tedious right now, but in the future, it may drive your success.

Typically, the cost of marketing far outweighs the cost of taking the time to track these things. Tracking can inform and optimize your marketing budget, allowing greater success than previously imaginable.

What are the metrics and behaviors that allow for rapid scaling?

Automation-

Phase two of the data maturity spectrum is automation. What compound interest is to your money, automation is to your time.

Automation increases efficiency, accuracy, and profitability of organizations. Automation is one of the primary drivers of rapid scaling and growth.

Customer Lifetime Value-

Understanding the lifetime value of your customers is one of the keys to rapidly scaling. The business that can afford to spend more on their customers will win every time. Understanding the value of your customers over time allows you to predict break-even points and therefore allows you to determine higher acceptable acquisition costs than those who base their spend exclusively off initial order value.

Why do averages suck?

By definition, averages pull in all of your data, the highs and the lows, and gives you one number. You don’t want to base your decisions off just one number though. The 80/20 rule applies to almost everything in life, and business is no exception. An average will hide the 80% of things that do nothing for your business behind the 20% of things that actually drive your results. We want to know what falls into the 20% category so that we can eliminate the 80% scale the 20% that works! Averages keep you growing at a steady pace; we want to deliver explosive, hockey-stick growth.

Too many businesses treat all of their customers the same way; whether they came in and spent a dollar, or a thousand. In order to scale though, you need to invest time and effort into your customers in proportion to the value that they bring to your organization.

Once you know where your most valuable customers come from, and how to properly target them, you can essentially print money for your business.

What should ecommerce companies know about their business?

Ecommerce companies should know what technology stacks they use in their business, and how those technologies handle data.

Amazon is a wonderful example of this. In the last couple of months, they have completely changed their terms of service (ToS) to restrict the data that merchants can access. Amazon collects a vast amount of data on the customers that come to your store and purchase, but they will now only allow you to see certain parts of that data. The worst part is that this is not unique to Amazon. Platforms across the web and world are cracking down on the data that they share with third parties. Because of this, you NEED to know how the companies that you work with handle data.

What should you do to protect against data loss?

You need to make sure that you either own the data completely, or that you have a backup of the data stored off of these platforms. In the podcast, we discuss how these platforms are your “frenemy”. They may seem nice, but the relationship can turn on a dime; so you need a backup plan.

As data becomes more and more scarce and consolidated within platforms, the value of that data will increase dramatically. For that reason, it’s imperative that you take ownership over your data and protect it from outside sources that would limit your access to it.

What sort of subscription metrics should ecommerce companies look at?

We see so many companies come to us and ask what their average subscription length is. As we already discussed, averages are evil.

Instead, we build a chart that shows how many cancellations they have per day. If you have an average, it will tell you that your average subscription length is 60 days; this chart will show you that 30% of your cancellations occurred between day 3 and 7, so you can take action during that time period to reduce that churn.

Everyone wants to increase the average, but the average in and of itself doesn’t help with that. You need granular detail in order to actually make an impact.

What are the next steps?

The first step is to start investing in your data. No matter where you fall on the data maturity spectrum, it’s important to start investing time, energy, or money into advancing your data.

If you need help diagnosing where you fall on the data maturity spectrum, or how to get to the next level, we can help you discover where you fall on the data maturity spectrum, and build a custom data roadmap for your business. Schedule a free appointment with a Praxis Metrix data expert.