Limited Supply

S7 E10: This Simple Hack Produces a 78% Better ROAS

Mar 6, 2024

Discover the power of Facebook catalog ads for DTC brands and learn why Klaviyo's dominance may be waning. Uncover the top subscription barriers, the Thrasio bankruptcy, and the PostScript CashBack alternative. Dive into email marketing challenges, negotiating with content platforms, and strategies for business optimization.

52:56

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Quick takeaways

Effective storytelling boosts subscription rates by 50%, emphasizing product benefits.

Facebook catalog ads yield 78% better ROAS for brands with diverse SKUs.

Thrasio's failure stems from overlooking brand uniqueness, highlighting need for sustainable acquisitions.

Deep dives

Transforming Article Traffic into Subscriptions

Article traffic was successfully converted into product page visits, resulting in a remarkable 50% subscription rate for the company. Customers weren't merely signing up, but were purchasing and reordering products, solidifying a strong subscription revenue stream. Emphasizing storytelling around product usage and benefits proved instrumental in driving subscriptions.

Maximizing Performance with Catalog Ads

01:23

Focus on the primary option to prevent analysis paralysis

01:27

Maximizing Results with Catalog Ads and ASN on Facebook

01:10

Introduction

2min

Exploring Facebook Catalog Ads and Advertising Strategies

13min

Tech Company Financial Performance Analysis

6min

Evolving Perspectives on Business Solutions

2min

Challenges and Costs of Email Marketing Platforms

6min

Negotiating with a Content Platform and Subscription Optimization Strategies

13min

Navigating Credit Card Chargebacks and Business Bankruptcy

11min

Listen up kiddies, and let Nick and Moiz tell you the story of ages past.

Back in their day, before you had to worry about finding a MAX-9 brochure sitting in the plane seat in front of you, you used to look forward to busting open the germ-covered pages of the Skymall catalog on plane flights. Where else could you order a ton of crap you never knew you needed?

But Skymall, and the catalog disappeared. Now, Facebook catalog ads are determined to fill the void of flipping pages upon pages of products. Nik and Moiz dive into the nitty gritty details of why your DTC can't afford not to harness the power of Facebook catalog ads before explaining how to implement them the right way. Is it a smart move for your DTC? And just how much can they boost your ROAS?

Then, the guys discuss if Klaivyo is becoming obsolete. With diminishing stock prices since the company IPO’d, is it possible the service is finally ending its stronghold over the DTC community?

Plus, Nik shares the top subscription stoppers that hinder customers from signing up for subscription services and later, he and Moiz tackle the Thrasio bankruptcy.

Give customers more choice—and save your margins—with Postscript CashBack.

This is the better alternative to coupons.

Offer customers a CashBack option anywhere you use a coupon—popups, welcome series, or over SMS and email. When customers select a store gift card for their CashBack option, they return to purchase multiple times and spend more.

Postscript is the DTC darling of SMS for a reason—they’re in the biz of making brands more money–more efficiently. Learn more at postscript.io/limited

00:01:14 - Effective Facebook Catalog Ads and Subscription Strategies

00:02:12 - Creating Effective Facebook Catalog Ads

00:16:32 - Klaviyo Doubles High-Paying Customers in 2023

00:27:24 - Overcoming Subscription Barriers in Marketing

00:32:29 - Why People Cancel Consumable Subscriptions

00:40:02 - Make Unsubscribing Easy for Customers

00:44:26 - E-commerce Aggregator Thrasio Declares Bankruptcy

00:52:21 - Klaviyo's Inventory Management

Want more DTC advice? Check out the Limited Supply YouTube page for more insider tips.

Check out the Nik’s DTC newsletter: https://bit.ly/3mOUJMJ

And if you’re looking for an instant stream of on-demand DTC gold, check out the Limited Supply Slack Channel for Nik and Moiz’s most unfiltered, uncensored thoughts.

Follow Nik:

Twitter: https://www.twitter.com/mrsharma

Follow Moiz:

Twitter: https://www.twitter.com/moizali