There are some must-have mindsets to move into an online business. The first is to focus. It is not recommended for an online business newcomer to start many companies at once.
It was said by Aliefan El Islamy at his presentation as a guest lecturer in the Retail Management course on Tuesday (12/7/2022). Alief is a digital marketing specialist at Excommerce Digital Indonesia. He shared his insightful material based on his experiences. He is responsible for some brands, including Stalker, Hightymensware, NSA IND, Nabillasyal, The Nu Episode, Amigos De Nimes, and Morwick.
The second mindset is the attitude of wanting to learn. “Without the intention to learn, we will be left behind. Online business is growing and changing rapidly,” he said.
The third is the courage to take risks. To thrive, often we have to take risks, of course, with the projected results at the beginning. As long as we have a solid foundation, taking risks is nothing wrong. The fourth is to be flexible. To achieve the target and excellent performance, we must be able to adjust the strategy.
Next, decide whether we will sell the product in a well- or under-established market. In his explanation, Alief called it the red ocean and blue ocean. Each has its advantages and disadvantages. It is something to be considered.
The third is to analyze the selling price. For example, we can consider HPP (Cost of Goods Sold), operational costs, admin fees, free shipping, cashback, advertisements, etc. The fourth is competitor analysis. We can apply those references for our business strategy and position.
After explaining the product, Alief discussed about funnelling, specifically AISAS model. AISAS consists of Attention, Interest, Search, Action, and Share. Attention and Interest are in the upper funnel, while Search, Action, and Share are in the lower funnel. The upper funnel affects psychological change, is passive, and is used to build audience awareness. While the lower funnel is more action-oriented and active, thus encouraging the audience to purchase.
Then Alief explained the basic division of business teams. The business team consists of operations, production, marketing, reporting, and content. Alief then continued with a case study of the denim pants business. In the case study, the increase in turnover increased rapidly after ad implementation and optimization. As previously explained, we can apply the appropriate strategy based on our data analysis. For example, we get data that the CAC (Customer Acquisition Cost) is 10%. Through more or less equivalent ad performance, we can project the revenue we could earn if we increase or decrease the budget.