The main event is here and what all us ecomm folks & DTC founders live for: Q4! It’s the time when all of your endless work, effort, marketing planning, cash flow management, etc. all PAY OFF BIG TIME.
With acquisition costs on the rise and efficacy of paid media on the decline, retention and customer LTV have become one of the most important factors in the success of DTC brands. Newly acquired customers have to be retained at higher rates than before in order to drive long term, lasting business growth and profitability.
DTC growth has become increasingly challenging, expensive and unstable, especially post-iOS14. The new-found challenges associated with scaling your DTC brand through paid media alone has illuminated a lot of weak spots brands were leaving unaddressed before Apple’s update – like retention and subscription revenue growth.