If your Facebook campaigns are seeing a drop in performance, I’ve made a flowchart that might help. Read the article for the enlarged chart, as well as some notes on using it.
All posts in September 2021
Qualities of a Strong D2C Company, Quality #1: COGS
After working with 50+ D2C companies on acquisition, it’s clear that the strongest ones have a few common characteristics about them.
Over the next series of posts, I’m going to go over the characteristics of each one and introduce a model around them. Actually, they’re more akin to dimensions than characteristics, because there are tension between many of the qualities that make for a strong D2C company.
For example, AOV and CAC (as a percentage of overall LTV) are two different qualities that determine the strength of a D2C’s company’s long term viability. However, there are tensions between the two; as price increases, so does the overall population of customers willing to pay that price. The smaller the population, the higher the marginal cost for each additional customer, and therefore the higher the CAC.