Scaling DTC brands is actually very simple, in principle. All you need is: - a product people WANT - a website that converts - enough inventory - a creative machine - someone running your ads that knows what they are doing - a retention machine However, the reality: - people mistake making a few sales for genuine PMF - websites get built that 'look nice' and it takes too long for the lightbulb to come on that conversion rate is the most important thing and they can worry about looking nice when they are doing 100m a year - managing inventory is a real skill, minimizing dead stock and ensuring best-sellers are always on hand (or at least the majority of the time, the odd sellout can be great for creating fomo as long as the restock doesn't take months) - creative gets made that 'looks nice' and it takes too long for the lightbulb to come on that conversion rate is the most important thing and they can worry about looking nice and being totally on-brand when they are doing 100m a year - most agencies and freelancers are bang average and either phoning it in by totally relying on Meta and Google automation or don't know how to scale and are scared if they increase a budget by more than $20 they will go back into the dreaded learning phase and everything will sink to zero - retention encompasses several things including email and customer service; on email usually there is little to no A/B testing happening to drive results and things get stale, we saw significant performance jumps for one client last year when we convinced them to: a) stop being so transactional in every email and add value [jab, jab, hook] b) send more organic-looking text-only emails instead of the same templates and graphics all the time c) do multiple daily sends for big sales, before they were scared of 'getting a load of unsubs and lower deliverability' but from doing this the only thing that went up was their revenue So while it sounds easy enough in theory, the tougher reality is why most brands won't make it. Anything I missed?
Nothing in theory is ever 100% the same when its put into practice, interesting to see this reminder for DTC brands Gil David
Managing Director Brand Developer (He-shi Tan & SKINICIAN skincare)- Clients include THG, Harvey Nichols, Sephora, Pharmacy Groups and Professional Salons - Growing D2C e-commerce and Amazon. Youth Volunteer and Mentor
7moAn aligned team and trust