Thread by @JimWHuffman

How do you grow a #D2C startup from idea to 8 figures?

After working with 100+ brands, I have seen some raise millions and others go on Shark Tank.

Here are the 22 things to do.

See thread:

1/ Get the Product Right. If Not, Nothing Matters.

How?

- Be different >> @WearAtoms has 1/4 sized shoes
- Know your persona >>> Bala Shoes Has nurses
- Solve a problem >>> @wearehims and balding

2/ Launch on the Back of Your Flagship Product

What product do people talk about the most? What has the highest conversion rate?

- @gf_collective >> Leggings
- @Bonobos >> Dress Pants
- @universalstand >> The Geneva "Travel Dress"

3/ Solve a Real Problem

What problem makes customers proactively search for a solution?

- @KreyolEssence helps w/ hair growth
- @CurologyUSA personalized acne care
- @MinistrySupply makes men's dress cloths comfy
- #Feets going after, well, feet

4/ Focus on a Specific Persona

Don't be everything to everyone. Bonus points for having a persona with low price sensitivity and high intent to buy.

Bala Shoes hit $1.5M in 7 days w/ shoes for nurses
podcasts.apple.com/us/podcast/bri…

5/ Get the Business Model Right

Here is the holy grail for a #D2C biz model

High AOV
High repeat purchases
Low return rate (Beauty > pants)
Limited colors & sizes
Bonus pts for subscriptions Ex: @billiebody

Why do you think @onepeloton is so valuable
funnelteardowns.net/teardown/pelet…

6/ Create a Movement

Don't just sell a product. Sell an aspiration or a mission.

@Everlane > "Radical Transparency"
@TOMS & @BOMBAS > Buy a Pair, Give a Pair

Leverage @BainAlerts & @HarvardBiz "Elements of Value" study for ideas: media.bain.com/elements-of-va…

7/ Create (and Own) Your Category

Don't promote your product. Promote a category and it'll lift your brand.

@SPANX invented the shape-wear category with a simple use case. Own a category and you own the market.

8/ Pick a Fight with the Status Quo

How do you make noise and get noticed?Go after the status quo or big brands and become the underdog.

Look at how @ThirdLove attacked Victoria Secret to gain market share.

9/ Build a Community Early

Your community can become your super power. They have a high repeat purchases, they help w/ product development, and you can mobilize them for launches.

Take notes from @KreyolEssence, @glossier, and @lululemon.

10/ A Cool Product Isn't Enough. Test Activation Tactics.

Try creative experiments w/ how you educate, activate, and convert people.

@ThirdLove > Fit Finder
@CurologyUSA > First Month Free
@MottandBow > Home Try On Program
@Beardbrand > Beardsman Quiz

funnelteardowns.net/teardown/curol…

11/ Turn Your Customers into Marketers

Launch a referral mechanism that works by giving away a product that wows customers. Plus, it gets your CAC down.

Girlfriend Collective > free leggings
@harrys > free razors

Tools to use: @kickofflabs, @ViralLoopsHQ, @smilerewards

12/ Invest Early in Organic Traffic

As you scale, you need to your paid traffic to be under 50% of all traffic. SEO is a way to do that. Invest in content that captures searches for high intent phrases.

@Honest nailed this with definition searches

(@siegemedia can help)

13/ Retention is the New CAC

As ad costs go up, you want to invest in email, SMS, & loyalty programs to grow sales.

Create a personalized retention strategy by getting customer data with a quiz funnel or w/ onboarding.

Take it from @ForerunnerVC

forerunnerventures.com/our-perspectiv…

14/ Customer Service as Marketing

For s high repeat purchase biz models (Ex: beauty, razors, etc.) customer service can serve as a secret weapon for building customer loyalty.

@WarbyParker made Youtube videos for clients
@Bonobos had Ninjas

15/ Build Your Growth Strategy Around Seasonal Dips & Spikes

Q4 is big (Over 35% of sales)
Q1 is slow (Less than 20%)

Calendar your launches, partnerships, & promos around the peaks & troughs.

Watch the 4 peaks method from @CommnThreadCo
facebook.com/watch/?v=77982…

16/ Facebook / Instagram Ad Tips

- Connect @Shopify Catalog and run product ads for anyone that abandons cart
- For prospecting content, Use UGC & Influencer how tos
- For retargeting content, social proof, and detailed product shots win
- Use purchase event and CBO

17/ Google Ad Tips

Google ads and Facebook ads work well together when you can do the following

- Bid on your brand name (Yes, it's annoying but protect your market share)
- Setup Google Shopping ads
- Do keyword bids on the high intent searches with medium volume

18/ Don’t Reinvent the Wheel with Your Tech Stack.

If you're just getting started, start with the following tools and don't look back:

@smilerewards , @Yotpo, @OutgrowCo, @Shopify, @klaviyo, @justunosocial, @ShipStation, @DeliverrInc,

19/ Know Your Unit Economics, Then Scale

What is your margin?
What's your LTV?
What's your CAC (blended) and CAC (per channel)?
What's you're payback time?
Revenue per email
Purchase conversion rate?

Here are some benchmarks from @StoreGrowers
storegrowers.com/ecommerce-metr…

20/ Invest in CRO to Unlock Growth

Don't waste good ad dollars on a bad #ecommerce funnel. Invest in a #CRO agency (I am biased to @GrowthHit) that does on-site tests & qualitative research.

Here are our favorite funnels:
funnelteardowns.net/teardowns

21/ Your Pre-Launch Strategy Gives You an Unfair Advantage

@MinistrySupply leveraged @kickstarter for pre-sales
@harrys built a 100,000 waitlist pre-launch
Bala Shoes spoke with 500 Nurses pre-launch

Here are some launch examples:
growthhit.com/7-successful-p…

22/ Continue to Learn from the Best

This industry is changing with every Facebook ad update. To stay in the know, check out:
@web, @ForerunnerVC, @CommnThreadCo, @mutesix, and many more.

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