Mosope Adeyemi’s Post

Are you sure that your loyalty program is using the right discount type? 👀 Most DTC marketers know about the Rule of 100, which states that when a product is priced lower than $100, it's more effective to use percentage-based discounts; and when a product is priced higher than $100, it's more effective to use dollar-based discounts. Since the vast majority of brands have an AOV lower than $100, percentage-based discounts seem to be the right move—yet our analysis found that 75% of loyalty programs are leveraging fixed-dollar discounts. This is especially puzzling when you consider that nearly 90% of brands used percentage-based discounts for BFCM 2023. If brands are using them for the most important sales season of the year, why aren’t they more willing to use them in their loyalty program? Our CEO Mike Berardo breaks down this contradiction in the latest Repeat Saturday Email. Subscribe to learn more about how your loyalty program can use discounts to drive better results: https://hubs.ly/Q02Sq5yd0

If you're not subscribed to our newsletter you're missing some critical industry data not being talked about anywhere else with highly actionable insights around.. 💡the state of loyalty programs (spoiler alert: they're boring & need a way more captivating, personalized strategy) ❌ what you're doing wrong (like not taking a proactive in channel approach to engaging and hyping up your loyalty members) ✅ how to leverage the *right* discount type for your loyalty program So what is the right discount for your brand to leverage when rewarding your most valuable customers? Dive into our latest newsletter below, and subscribe to stay on the cutting edge of loyalty programs and retention strategies! 👇 https://hubs.ly/Q02Sq5yd0

💸 Did you know dollar discounts could actually be costing brands more than they realize… Most brands avoid percentage-based discounts because of the “uncapped” cost and stick with dollar discounts for the predictability. Sound familiar? Well, we dug into the data and found that percentage-based discounts actually drives more revenue for brands with an AOV under $100!! Check out our latest newsletter to learn more actionable insights on how to maximize your loyalty program! 👇 https://hubs.ly/Q02Sq5yd0 Some of our top customers saw results in just a week 👀 —let me know how it works for you!

The digital age has disrupted consumer behavior. While traditional retail remains strong for #CPG brands, a growing segment seeks products online. #DTC sales offer an enticing opportunity, but is it the right move for your brand? Consider these factors before taking the plunge: 💰 Can you offer unique value? 📶 Are you optimized for online? 🎨 Does your brand stand out against competition? 🚚 Do you have reliable providers or strategically located fulfillment centers? Don't get caught in the hype – a data-driven approach ensures DTC strengthens, not undermines, your brand. Head over to our website to learn more about building a well-defined DTC strategy. https://bit.ly/4d0jRsL #digitalmarketing #brandonagency

The graph here is as clear an indication as you can get that most brands operate in one mode for holiday & sale periods (volume as the far and away number one priority) while approaching a loyalty strategy more defensively (focus on contribution margin). I think this is wrong in both cases. That mindset for holiday and sale periods leads to (a) discounting too often and (b) discounting more than is necessary/optimal. Blanket approach that is margin destructive and gets worse with time as customers learn to not purchase full price. For business-as-usual, the idea that fixed rewards (e.g., redeem some amount of points for $20 off) protect margin more than uncapped %-based rewards is wrong in nearly every single case we’ve looked at. It often comes from a CFO defensively policing marketing as a compromise to launch a loyalty program. We recently worked with a brand to convert their loyalty strategy from fixed $ to %-off rewards. The best reward they offered was previously $50 off, and they changed it to 20% off. Same amount of prior spending (~8x their $60 AOV) required to access that discount. Volumes didn’t really change, but this is the picture over the last 13 weeks: - First 10 weeks with $50 off reward in place: $105 gross AOV, $50 discount, $55 net AOV - Last 3 weeks since change: $115 gross AOV, ~$23 discount, $92 net AOV The effect isn’t always that big ^, but the direction usually is. Personalized, percent-driven discounts (20% or less) tend to be both AOV and margin accretive.

CPG brands struggling with profitability? Try this... Bundling. With rising ad costs and most CPG brands having low AOVs, it’s tough to stay profitable without a dialed-in LTV. That’s where bundling comes in. By increasing AOV, you can afford to pay more to acquire customers and outspend competitors. For example, if your CPA is $35, raising your AOV from $40 to $60 by creating a bundle can boost your gross margin from $5 to $20, even if your CPA rises to $40. We've seen great success with this by creating starter kits based on customer buying patterns, pairing complementary products, and enhancing perceived value with discounts or free gifts. The key? Testing and refining bundles until you find the right offer. Plus, it puts more products in customers' hands, increasing repeat purchases. Bonus: Add subscriptions or upsells to boost AOV and LTV even further.

DTC brands will waste $10000’s this BFCM. On one channel. SMS. The way most brands look at it is inherently wrong. “It’s a promotional period so let’s send it to EVERY SMS subscriber.” Maximise revenue earning potential, right? Wrong. Look at the engagement data for your SMS subs. A large % will have never clicked on a message. A large % will have signed up months ago & never purchased. The incremental lift from including everyone in your SMS sends is likely small. For the most part, you’ll just be spending boatloads more, for a measly ROI. Be smart with your SMS segmentation. And save yourself a few quid in the process.

Broke CPG COs want a 3x ROAS Hypergrowth CPG is profitable with a 0.8 It comes down to 4 simple things these companies do different. [And no I'm not talking about VC backed "profitability"] 1. Tight cost controls • they scrutinize every cost on their P&L • know cohort value by 1st product purchased and adjust marketing spend accordingly 2. Retention programs • track segment value and constantly look to increase CLV • regularly analyze subscription churn and troubleshoot ASAP 3. Tracking incrementality     • they avoid the sugar high of conversion tracking that includes {[("𝘼𝙉𝙔")]} remarketing • use real exclusions and strict attribution to measure true net new customers 4. Obsessing over the 1st purchase     • their cold traffic landers are optimized for 1st time site visitors (no PDPs) • create insanely compelling offers, even taking a "loss" on the 1st purchase What else are these guys/gals doing different?

Broke CPG COs want a 3x ROAS Hypergrowth CPG is profitable with a 0.8 It comes down to 4 simple things these companies do different. [And no I'm not talking about VC backed "profitability"] 1. Tight cost controls • they scrutinize every cost on their P&L • know cohort value by 1st product purchased and adjust marketing spend accordingly 2. Retention programs • track segment value and constantly look to increase CLV • regularly analyze subscription churn and troubleshoot ASAP 3. Tracking incrementality     • they avoid the sugar high of conversion tracking that includes {[("𝘼𝙉𝙔")]} remarketing • use real exclusions and strict attribution to measure true net new customers 4. Obsessing over the 1st purchase     • their cold traffic landers are optimized for 1st time site visitors (no PDPs) • create insanely compelling offers, even taking a "loss" on the 1st purchase What else are these guys/gals doing different?

What should we price our products at? This question pops up in every conversation I have with DTC brands. But the answer? It depends. Factors like seasonality, business and inventory needs, COGS, and margins all play a role. Viewing pricing through the lens of a product's lifecycle—from planning a new launch with an expected MSRP and margin objective for vendor negotiations, to setting the initial price, adjusting for sale events, and making tweaks to meet sales or inventory challenges—helps clarify these decisions. As we delve deeper into how pricing can be a powerful tool, we've observed that a simple A/B testing approach often falls short for brands. Real-life examples from our customers revealed that rolling out new prices across their entire catalog, based on A/B test results, didn't perform as expected. It's not that A/B testing isn't valuable—it's crucial for gaining insights into customer reactions at a specific moment for a particular product. However, if the prices tested were promotional or recently adjusted, the context changes. Effective testing must consider all business factors. At Aument, we're passionate about considering the entire product lifecycle, from planning to end-of-life, integrating the promotional calendar, and forecasting demand to minimize inefficiencies. Our solution has evolved from focusing solely on promotional pricing to including strategies for clearance events and regular pricing adjustments to meet financial goals. Our roadmap is packed with exciting developments, and we can't wait to share them. Do you have any tips or resources on managing pricing for any of these scenarios? I'm eager to learn more! @ Sheena Northrup Jonathan Hersch ✨Catherine M. Sonam Rajpal Stacee Dorning Emma T. Deanna Di Giusto Picone Matthew Moyer