Podcast Summary: TikTok Shop Insiders Episode Title: TikTok Shop's New CRM Feature—Here’s What You Need to Know NOW
Release Date: December 6, 2024
Hosts: Ivan and Pat
Podcast: TikTok Shop Insiders

Introduction

In this episode of TikTok Shop Insiders, hosts Ivan and Pat delve into the latest updates and strategies essential for thriving in the competitive landscape of TikTok commerce. The conversation seamlessly transitions from personal anecdotes about holiday decorations to critical insights on navigating TikTok Shop's evolving features and market dynamics.

1. Website Update and Cease and Desist Notice

Ivan initiates the discussion by addressing a significant setback:

"TikTokShopInsiders.com is down. I believe we mentioned in the last call that TikTok essentially gave us a cease and desist on the word on the website."
(Timestamp: [02:00])

Ivan explains that while the domain name remains usable, the content within the website needs adjustment. They are actively working to restore the site and, in the interim, have updated the show notes to include Ivan's Calendly link for brands interested in partnerships.

2. 2025 TikTok Shop Strategies

As the year draws to a close, Ivan and Pat pivot to discussing future strategies for TikTok Shop in 2025.

a. Increased Competition and Sample Requirements

Pat observes a shift in the platform's ecosystem:

"The landscape has completely changed since early 2024. [...] Nowadays, we're getting closer to 300, possibly 400 samples with 200 plus videos coming back before we start to get a good sign of videos."
(Timestamp: [03:23])

Pat attributes this change to the surge in both creators and brands on TikTok Shop, necessitating a higher volume of samples to achieve meaningful engagement and sales.

Ivan adds:

"A lot more samples are needed. Right. Before we were 100. Now we need like 300 to 400 is what we advocate for our clients."
(Timestamp: [04:23])

b. Marinating Time for Videos

Ivan introduces the concept of "marinating time," highlighting the delay between video creation and sales impact:

"There’s now a month to two months of marinating time where you have those 200 videos made and they're kind of just sitting there and there's not a lot of sales."
(Timestamp: [04:50])

This period allows TikTok's algorithm to appropriately showcase the content amidst the increased volume of videos, eventually leading to potential virality and sales.

c. Quality of Affiliates and Shift to Flat Fee Offers

Pat emphasizes the importance of partnering with high-quality creators:

"Be prepared to have flat fee offers for creators... Brands are looking for those high-quality creators that they can lean on."
(Timestamp: [06:48])

Ivan explains their strategy of transitioning successful affiliates from sample-based collaborations to flat fee arrangements:

"We'll reach out to them for a flat fee plus retainer for 20 videos... It's kind of a win-win all around."
(Timestamp: [07:46])

This approach ensures consistent, high-quality content while optimizing costs for brands.

3. Advertising Budget Recommendations

The hosts discuss the necessity of allocating a budget for paid advertisements on TikTok Shop.

Pat states:

"The days of just relying on organic traffic on TikTok are pretty much over... You have to have some level of ad budget to support your videos."
(Timestamp: [09:01])

Ivan inquires about specific budget recommendations, to which Pat responds:

"You want to recommend at least A$200 a day... and you can scale from there depending on the performance."
(Timestamp: [09:38])

The consensus is that beginning with a budget of $100 to $200 daily allows brands to test and optimize their ad campaigns effectively.

4. Importance of Live Content

Ivan highlights the growing significance of live-streaming within TikTok Shop:

"Lies and lives and lives and lives. [...] Having your internal team going live with content is always going to help."
(Timestamp: [10:22])

Pat concurs, suggesting that affiliates proficient in live content creation can form paid partnerships with brands to enhance visibility and sales through live demonstrations and interactions.

5. Affiliate Academy HQ

Ivan introduces their latest venture, Affiliate Academy HQ, aimed at fostering a community of top-performing affiliates.

"Affiliate Academy HQ is where you'll find all that info... We interviewed this girl... she has had $500,000 of affiliate commissions."
(Timestamp: [12:05])

This platform serves as a resource for affiliates to learn from the best, and for brands to connect with high-caliber creators.

6. TikTok Shop Enhanced Seller Protection

A significant portion of the episode is dedicated to discussing TikTok Shop's new seller protection features.

Pat elaborates on the enhancements:

"TikTok shop sent out emails to sellers... automatic refund rejections... blocking risky buyers."
(Timestamp: [15:41])

Key features include:

• Automatic Refund Rejections: Minimizes losses from fraudulent refund claims.
• Blockers for Risky Buyers: Identifies and restricts users with histories of high return rates or frequent refund requests.
• Proof Requirement: Sellers must provide evidence to validate refund requests, reducing scams.
• Extended Return Periods: Higher value products receive additional days for review, and undelivered returns have a 30-day window.

Ivan shares a specific issue these protections aim to tackle:

"Someone would buy something expensive, like a laptop, and they would return a box of books... Now TikTok is keeping a closer eye on those type of shoppers."
(Timestamp: [16:27])

These measures are designed to create a safer and more reliable marketplace for sellers on TikTok Shop.

7. TikTok Shop CRM Features

The centerpiece of the episode is the introduction and exploration of TikTok Shop's new Customer Relationship Manager (CRM) feature.

a. Overview and Eligibility

Pat outlines the eligibility criteria:

"You need to have a higher than 80% 24-hour response rate to customer messages... at least some GMV over a dollar."
(Timestamp: [19:26])

Eligible sellers gain access to two main functionalities:

• Manual Plans: Mass outreach to various customer segments using templated messages.
• Automated Plans: Dynamic messaging based on customer behaviors, such as abandoned carts or price drops.

b. Manual Plans

Pat describes the manual outreach capabilities:

"Recent customers, repeat customers, lapsed customers, frequent customers, and potential new customers."
(Timestamp: [20:46])

Sellers can deploy templated messages to these segments, with options to include coupons and highlight additional products.

Ivan compares it to traditional email marketing:

"It's like retargeting... similar to your experience on a DTC site with follow-up emails."
(Timestamp: [21:00])

c. Automated Plans

Pat explains the automated messaging strategies:

"Abandoned cart customers... incomplete checkout customers... post-purchase thank you or a price drop reminder."
(Timestamp: [22:20])

These automated messages dynamically target customers based on their interaction with the shop, ensuring timely and relevant communication.

d. Implementation and Benefits

Ivan emphasizes the ease and effectiveness:

"Once you set up the plan, you'll see metrics like how many messages were sent, opened, and converted."
(Timestamp: [25:20])

Pat adds that engagement rates are comparable to successful email marketing campaigns, often achieving 30-35% read rates.

To access these features, sellers navigate to the Seller Center under the Marketing tab and select the Customers section.

Conclusion

Ivan and Pat wrap up the episode by reiterating the importance of leveraging the new CRM features and other discussed strategies to enhance TikTok Shop performance. They encourage listeners to engage with their new Affiliate Academy HQ and emphasize the value of high-quality affiliate partnerships.

Ivan concludes:

"Keep an eye out for Affiliate Academy HQ and leave a review if you found any pieces of information helpful."
(Timestamp: [26:00])

Meanwhile, Pat humorously signs off amidst talks of holiday decorations, keeping the camaraderie alive.

Key Takeaways:

• Enhanced Competition: Increased number of brands and affiliates necessitates higher sample volumes and quality content.
• Marinating Time: Patience is required as TikTok's algorithm adapts to the influx of content, potentially delaying sales.
• Quality Over Quantity: Focusing on high-performing affiliates through flat fee models can optimize content quality and brand relationships.
• Advertising is Essential: Allocating a budget for paid ads is no longer optional for success on TikTok Shop.
• Leverage Live Content: Live-streaming remains a powerful tool for engagement and sales.
• Protect Your Business: Utilize TikTok Shop's Enhanced Seller Protection features to safeguard against fraudulent activities.
• Utilize CRM Features: Implement TikTok Shop's new CRM tools for effective customer engagement and retention.

By integrating these strategies, brands and affiliates can navigate the complexities of TikTok Shop, driving sustained growth and success in the dynamic world of social commerce.