Limited Supply S10 E6: Listener Mailbag: EOY 2024 Wrap-Up
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Dec 11, 2024 Nik tackles listener queries as 2024 wraps up, discussing team structures for DTC businesses. He emphasizes the benefits of lean teams and the importance of balancing internal and external roles. The conversation shifts to revenue strategies, highlighting variations between product types. Nik suggests maintaining existing customer relationships over aggressive discounts, proposing gifts with purchases instead. The chat wraps with reflections on quality service, feedback appreciation, and future content directions on health and wellness.
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Lean Team Structure
- Stay lean and leverage external resources like agencies and freelancers.
- Focus in-house efforts on core functions like finance, operations, product development, and brand marketing.
Revenue Channel Distribution
- Revenue distribution across channels varies for every business, especially between consumable and non-consumable products.
- Aim for a 50/50 split between paid media and organic efforts (including email and returning customers).
CAC to LTV Ratio
- Target a 1:4 customer acquisition cost (CAC) to lifetime value (LTV) ratio as a general rule.
- Consumables allow for breakeven CAC due to higher LTV from repeat purchases.