Tiêu đề For D2C Ecom Founders - How To Profitably Scale Without Running Out Of Money In a Market Of Hiked Churn Rates, Rising New c.pdf ✅

For D2C Ecom Founders: How To Profitably Scale & Exit in 2-3 Years Without Running Out Of Money In a Market Of Hiked Churn Rates, Rising New Customer Acquisition Costs, and Completely Boot Strapped Without Relying on Outside Marketing Agencies Capital Efficient Acquisition Systems. Cross, Up & Downselling Customer Retention Strategies. Remote Commission Only Marketing Team. System To Produce Minimum 90+ Testable Ads Per Month Without Relying on Outside Vendors. Work With Us Written by Chris Hernandez COPYRIGHT SCALEVELOCITY.IO 2023 THIS DOCUMENT IS PROTECTED BY U.S. AND INTERNATIONAL COPYRIGHT LAWS. REPRODUCTION AND DISTRIBUTION OF THIS DOCUMENT WITHOUT THE WRITTEN PERMISSION OF SCALEVELOCITY.IO IS PROHIBITED.
Rising Customer Acquisition Costs (CAC) In Global Markets for Direct to Consumer Brands (D2C) who advertise their physical products online, the growth in popularity of online shopping has intensified competition leading to increased customer acquisition costs (CAC) (1). Brands & Retailers advertising online from paid social platforms have seen an increase of an average 27% rise in CAC YoY and a 222% rise from the last eight years (2). An average Merchant saw a net-loss of $29 to acquire a customer in 2022. With the U.S GDP Growth in 2022 falling down to 1.9% YoY and expected growth in 2023 to hit 0% YoY with the Federal Reserve raising interest rates by 4.5% QoQ, the rise from initial CAC & longer sales cycles will significantly stunt most D2C brand’s growth in 2023 from previous patterns post-2020 pandemic (3;4). The challenge today is that everything has become much more expensive while data attribution tracking is losing effectiveness due to IOS 14.5 updates providing Apple 1
users the option to block activity tracking from platforms such As Meta, Instagram, Youtube, Google, & TikTok (5,6). Google is expected to also remove third-party cookies on its Chrome browser for desktop users. Chrome accounts for over 65% of web-use globally (7). D2C Ecom Profitability Decreases The barrier of entry for direct competitors to advertise online and capture market share of a specific audience fails to exist. This is what leads to competition for many D2C brands struggling to scale profitability in common industries such as beauty & cosmetic, fashion & apparel, and brands in the supplement market to acquire a profitable CAC. Due to the rise of initial CAC on common platforms like Meta & Instagram, the majority of brands in these highly competitive industries tend to see a 1:1 ratio from total ad spend to return on ad spend in regards to complete purchase value. A deficit is present as the Cost of Goods (COGS) to fulfill that single order on a 1:1 ratio places these brands at a net-loss from shipping cost and advertising spend for a single new customer. A brand in this environment must then fund the following month’s advertising budget from future purchases based-off of Lifetime Value of a Customer (LTV). The second order consequence is the lack of data attribution tracking & saturation in common industries during a recession in the U.S economy from the amount of customers willing to pay for products they see fit as “luxury” goods during an economic downturn. Consumer behavior shifts from wanting to own “luxury” goods to buying products that fulfill basic human needs; food, shelter, and water (8). *Certain industries are outliers from this data and actually thrive during a recession; (healthcare, consumer staples, & in some instances - tech) (9) . How a Recession Effects D2C Brands? The inverse relationship from a D2C brand to acquire a new customer during periods of economic downturn will reflect in significantly higher CAC than ever seen before in the previous 2-years. If brand’s don’t focus on retention strategy as well with the economy 2