It’s sad to see a brand's growth potential dissipate through its channel owners’ incessant pursuit of platform-specific ROI targets.

The eCommerce brands ($5M-50M+) I’ve seen avoid this tragedy and who consistently achieve profitable growth, pursue their growth goals like this:
New leadership takes over DTC darling or the existing leadership meets to set goals for the coming year.

Before anyone mentions some arbitrary YoY % growth, IYA, or year-end rev targets, the brand's true AOV, Paid CAC, Total CAC, Retention %, and MER/ACOS metrics are clarified.
Revenue for the future time period in question is then forecasted by month based on the above inputs. This is the revenue that DTC darling will achieve in its current trajectory.

Leadership meets to discuss what they are going to do differently this year to alter the course.
Following those meeting(s), revenue is then re-forecasted based on the specific moments that are going to contribute to the brand's growth (new product launches, marketing campaigns, increased spend, etc.) Model inputs (Paid CAC) are also adjusted to account for increased scale.
The Head/Director of Growth, now equipped with very specific monthly revenue and efficiency targets that were thoughtfully developed and which are grounded in an understandable reality, gathers her leaders up...
Alongside her channel owners, and with the master forecast in hand, platform/channel-specific revenue and ROI targets for each month of the year are discussed and agreed upon.
All existing customers/past purchasers are hard excluded from Facebook campaigns.

Rather than using 100% Smart campaigns, the Google account is built out using audience exclusions in Shopping and branded KW exclusions in non-brand search campaigns to maximize incrementality.
Email + SMS flows are dialed in and campaigns are planned well ahead of time to align sends with the highest impact moments.

Not one last-minute campaign send or site-wide flash sale takes place in an effort to hit an EOM revenue. That's not the plan.
Day by day the channel owners review their pacing against goal and work with their buyers, strategists, designers, and developers, and copywriters to constantly adjust to make up for any lost spend, efficiency, or revenue and remain on track.
Week by week, the Head/Director of Growth meets with the leadership team to meticulously review pacing vs. goal on Gross sales, Order rev, Net sales, MER/ACOS, Total CAC, Paid CAC, Paid % of Sales, Organic % of Sales and channel-specific ROAS, CAC, and revenue targets.
At the end of each month, the prior month’s goals are actualized, the remainder of the year re-forecasted based on YTD pacing vs. goal, KPIs adjusted and communicated to channel owners, ad spend budget updated, and the process starts over.
Day by day, week by week, month by month, year by year, DTC darling's growth potential is realized through the channel owners’ incessant pursuit of incremental revenue and the leadership teams' persistent focus on the KPIs that actually lead to profitable growth over time.

• • •

Missing some Tweet in this thread? You can try to force a refresh

Keep Current with Luke Austin

Luke Austin Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!


Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

Did Thread Reader help you today?

Support us! We are indie developers!

This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!

Follow Us on Twitter!