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1/ Agree with much of this re: DNVBs, w few thoughts:
First, diversifying from paid -> organic channels is much more difficult than going organic -> paid. Building distribution into product from day1, operationalizing loops vs funnels, results in fundamentally different product.
First, diversifying from paid -> organic channels is much more difficult than going organic -> paid. Building distribution into product from day1, operationalizing loops vs funnels, results in fundamentally different product.
2/ 100% agree on prioritizing “LTV”
This means prioritizing retention >> acquisition and building a deep understanding around how *quality* of acq impacts ret. For paid channels, decisions on channels>audiences>creatives>site should include both cost & quality in objective fxn.
This means prioritizing retention >> acquisition and building a deep understanding around how *quality* of acq impacts ret. For paid channels, decisions on channels>audiences>creatives>site should include both cost & quality in objective fxn.
3/ That said, two points to be mindful of re usage of LTV.
First, timeframe in LTV calcs should be tight (esp when used as input to paid/programmatic channels), and assumptions in LTV model should constantly be challenged. @bgurley says it best: abovethecrowd.com/2012/09/04/the…
First, timeframe in LTV calcs should be tight (esp when used as input to paid/programmatic channels), and assumptions in LTV model should constantly be challenged. @bgurley says it best: abovethecrowd.com/2012/09/04/the…
4/ Also, careful of ownership w/o empowerment. Sounds clean conceptually to have LTV owner, but for most cos, work will be dependent on other fxns. Common mistake for cos is to equate “retention team” w “CRM team”, but retention is much bigger than any reengagement channel(s).
5/ The e-com/financing infra supporting/de-risking launch of DNVBs is increasingly effective. Real risk comes from distro platform concentration; unfortunately not an easy solve. Focus on building a differentiated, defensible, brand that consumers love => distribution much easier
