Stop Squeezing The Sponge
Ecommerce Playbook: Numbers, Struggles & Growth
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What's the Solution?
There's no one metric that you can give to somebody and have them behave appropriately. Not even contribution margin, our favorite metric in the world. In the short term, contribution margin could be totally offset by squeezing the sponge. So you have to give them a profit goal and a new customer acquisition goal. Holding those two things in tension is the way to get to and ensure that you're not sacrificing today's goals for tomorrow's outcomes.
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