How a venture capital consultancy can spot a hot ecommerce market leader
A business intelligence consultancy to help their vc client complete due diligence in many ways and one of these is by using ecommerce, digital marketing and seo freelancer specialist services to access the quality of the ecommerce B2B operation and therefore by fault the quality of the management team and suitability for investment.
Top line numbers are great but they may not be a true indicator of the quality of the current team going forward and in this post we outline a list of some key indicators that you as a vc consulting due diligence firm can look for and present to your VC client as positive signals that their potential investment has a competent digital marketing team at the helm.
They’ve moved off Mailchimp
Use of Mailchimp by itself is by no means a negative signal. Us and you are probably both using Mailchimp in some capacity right now and that’s absolutely fine. Mailchimp itself has come a long way in terms of marketing automation too. Basically its a great product. However as teams before more technically savvy they look to automate segmentation and communications and its at this stage that the world opens up to more specialist and advanced software. But the trouble is moving 250k+ subscribers who are being mailed maybe 4-5 times a week is tough without disrupting sales. So the old cliche is true…moving off Mailchimp is easy, but have you ever actually met more than a handful of major B2C ecommerce brands who actually have? We thought so. If they’ve moved off Mailchimp successfully or its in progress that’s a great signal of the team’s quality to any venture capital consultancy.
Site architecture is built for SEO and workflow
Optimising a sites structure for both SEO and workflow i.e. multi language product and content publishing operations is tough and requires experience, technical skills and a management team that values it. If the B2C ecommerce brand you are considering acquiring has weird inconsistent site structures and separated language domains then they probably don’t have semi automated content workflows for mass publishing and building organic traffic in multiple languages and there is only so much they can achieve in terms of ranking against a well structured for SEO competitor. If they have then you are dealing with a competent team or at least a historical team who have structured the website for growth and as a venture capital consultancy firm in charge of due diligence in terms of digital marketing expertise this is a major positive signal well worth presenting as it is technically nuanced yet hugely significant.
They’ve established some level of auto segmentation and live insights
It’s great for them ppt you to death about how well they know there customer segments and can design campaigns to target them but this is a hugely time consuming endeavour to do in practise. However if by using workflow software, an advanced CRM connected to their comms systems or ideally a Customer Data Platform (CDP) that can segment customer live and move them in and out of segments including near churn and churn then you have a significantly advanced team who as a result can maximise ad spend return, increase email deliverability and conversion.
They know the differences between DMARC, SPF and DKIM
Email is absolutely massive in ecommerce and if the digital marketing team and management can not at any level explain these terms that means they have not mastered the art of email deliverability. If it all sounds very technical that why should a digital marketer know this stuff then you’re wrong. At some point email deliverability will drop due to poor scoring and if you team are monitoring this already with a DMARC health check software then that’a good signal on the technical experience front for any venture capital consultancy to consider
Image credit: Glengarry Glen Ross
venture capital consultancy London
Venture capital firms London and the UK