Catch The Replay
Austin Gardner-Smith demystified DTC ecomm Money Numbers
During Wednesday's session with Austin Gardner-Smith, we discussed how digging into data and finance figures can help ecommerce businesses find ways to increase profits and predict revenue.
Be sure to catch the video replay on YouTube or listen to the audio version on your favorite podcast player.
Bonus: Austin mentioned the DTC benchmarks his team tracks. You can check them out here.
Session highlights (links go to YouTube)
2:35 Austin's journey to Bainbridge, and how they help DTCs understand the Money Numbers
8:00 Why it's important to understand CAC AND LTV (Austin wants you to understand something he calls Contribution Margin)
10:23 Example: One DTC brand discovered how accessorial fees were hurting their contribution margin and negotiated better rates
19:10 Additional metrics subscription merchants should monitor (+ why LTV should be specific to a certain time period)
20:54 The value of understanding Delay Retention Rate (yes, that's an ARPU term we're in the process of creating)
24:50 Predictability in subscriptions is finicky. Cohort analysis can help keep you out of a cash trough
27:33 Should a 1:3 CAC:LTV ratio be the goal in DTC ecom?
29:53 Do you really have a subscription business if people subscribe and churn quickly?
36:00 Levers sellers can pull to impact the bottomline (including increasing prices!)
Experts on deck
We meet every other Wednesday at 2 p.m. ET to keep the discussion going with ecommerce subscription experts. If you register once, you'll be registered for each upcoming session. Here's a look at what's coming:
Jon MacDonald, Founder & President of The Good
Katharine McKee, Founder of Morphology Consulting
Gen Furukawa, Co-Founder of Prehook