I tweeted a version of that episode title not long ago. It's nonsense: there is, of course, such a thing as revenue.
But in DTC, revenue is also one of the metrics I reference the least often. Instead, I'm constantly breaking it down into two smaller metrics, both of which tell me a lot more: New Customer Revenue and Returning Customer Revenue. In fact, those are the first two things I look at when I analyze a business.
In this episode I'll not only explain how I do that, but why I believe developing that same instinct is at the foundation of good growth thinking for every ecommerce brand.
EPISODE HIGHLIGHTS
- [00:00:09] New vs. Returning Customer Revenue.
- [00:04:25] Returning customer revenue.
- [00:06:11] High LTV customers.
- [00:09:27] Customer movement and strategy.
- [00:12:02] Forecasting ad spend and revenue.
- [00:15:01] Forecasting DTC Business.
- [00:19:38] CAC and LTV importance.
- [00:20:47] Customer Revenue and Profit.
- [00:24:26] High LTV Brands.
EPISODE SPONSOR
Visit Settle at www.settle.com/andrewfaris for a complete platform to manage Bill Pay/AP with fast access to extended payment terms at competitive rates and no personal guarantee.
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