Ollie Heum on LinkedIn: Best DTC Retention Designs - 2024 (2024)

It's almost 2 years since I joined Prospa, we've seen our team and revenue grow 3X 🚀 These are the key challenges in managing a marketing team and the processes we put in place that allowed us to scale to a 7-figure agency:1. → You don’t have a sales problem, you have a marketing problem 🔍You're in the marketing game, so how can you expect brands to be interested if you're neglecting your own marketing? We thought we had a sales issue at Prospa a year ago, but in reality, we just weren't marketing ourselves to the right people. 🎯Team Process: Project Zeus - amalgamate Sales and Marketing. Think like Mark Corrigan, but seriously, blur the lines between sales and marketing; they are mutually dependent. 🤝2. → Everyone should be repurposing content 🔄 When I joined, we spent hours creating individual bits of content that we’d use and discard. We shifted to creating high-level longform content that we could dissect into 100+ nuggets of value for ecom operators. We also implemented a checklist – if the content doesn’t meet our criteria, we don’t post it. ✅Team Process: We have a repurposing framework (DM for it) for every longform piece/video and frequent review sessions to ensure we’re utilising each piece enough. 📋3. → A lack of understanding shows 📉If you want to speak to high-ticket brands, you can’t fake your ecom knowledge in your content. Our team can sniff out ChatGPT content from a mile off. To truly speak to your ideal prospects and current clients, you HAVE to understand ecom. Do your research, note down pains from conversations, read articles, and submit your thoughts. 📝Team Process: Themed huddles around various ecom areas (CRO, retention, acquisition, etc.). Everyone has to bring something of value. 💡4. → Track and review everything 📊How can you assess the effectiveness of your marketing if you’re not tracking the data? Track every area – content, engagement, leads, organic spend, paid spend, referrals, outreach. We always talk about ecom brands’ LTV and CAC, but have you calculated your agency’s Unit Economics? This will help you set a profitable spend and assess your efforts. 💰Team Process: We developed a HUGE mastersheet with all our metrics that filter into one hero sheet. Each sheet has an owner, and we review the whole master sheet as a team every Monday morning. 📈5. → Brainstorm sessions – strip it back 🧠Often, agencies are stuck in a marketing rut but don’t ask themselves why. Sometimes you need to strip EVERYTHING back and reassess each channel. Start by writing the challenge, then set a solution based on 3-4 objectives to achieve it. ✍️Team Process: Deep brainstorming sessions. No screens, lock the doors, and use a massive whiteboard. Don’t leave the room until you’re happy with your objectives. 🔒It’s a competitive and saturated market, and standing out makes all the difference, but so do consistency and accountability. These team processes have allowed us to scale. 🌟

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📊 Ecom stores could be spotting their growth constraints by using this holistic and financial approach We engage with hundreds of ecom brands each month, and this is true for each one we speak to...Identifying growth bottlenecks is a major challenge.Here’s how we tackle this with our Accelerator Forecasting Model:1. → Pinpointing unprofitable ad spend: Know exactly when your next £ spent on ads becomes a loss. 💸2. → Understanding repeat rates and churn: See their effect on your 12-month revenue. 🔄3. → Analysing customer cohort behaviour: Understand its impact on your active customer file. 📊Calculating true New Customer Acquisition Cost (nCAC): Get an accurate measure of what it costs to bring in new customers. 📉We’ve implemented this model for our partners, including Hiut Denim Co , Maison de Fashion, Hair Syrup, OOSC CLOTHING, HECK!, Headstrong, and many more, providing unparalleled clarity.With this model, we:→ Accurately allocate spend 💷→ Optimise retention strategies 📈→ Forecast yearly turnover using historical data 📅The best part? This model leverages data that EVERY DTC Shopify store already has access to.Looking to Q3 and Q4, we’re excited to continue scaling with precision.Drop me a DM if you want to learn more about 🗣️ 💬

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We've generated £10m+ in New Customer Revenue for Maison de Fashion from Paid Social How? 🤔In ecom, every pound spent on ads counts. 💷 Our work with Maison de Fashion revolves around one crucial metric: aMER. This metric is the key to ensuring profitability. Here's how it all works.What's aMER? 📊It's straightforward:New Customer Revenue ÷ Total Ad Spend = aMERThis ratio tells you how effectively your ad spend is converting into revenue from new customers.Why It’s Essential: 🧭aMER isn't just a figure; it’s a compass. It guides us on when to push the accelerator and when to ease off on ad spending.While aMER gives us a blended overview, it doesn't answer the critical question: At what point does my next pound spent on ads become unprofitable? 🤔To delve deeper, we need to grasp the concept of Marginal aMER. 📝What is Marginal aMER? 🧐Marginal Acquired Revenue ÷ Marginal Ad Spend = Marginal aMERUnderstanding Marginal aMER helps us determine the profitability of each additional pound spent on ads.Setting Benchmarks 🏁To scale Maison de Fashion, we established benchmarks for both aMER and Marginal aMER. These benchmarks enabled us to:Optimise paid social campaigns focused on acquiring new customers.Ensure sustained profitability for Maison de Fashion.Creative Testing and Data Analysis 🎨📈We tested HUNDREDS of ad creatives, leveraging data from Motion and engagement metrics like CTR, Thumbstop Ratio, and Hold Ratio. These metrics were linked to our aMER and Marginal aMER targets, allowing us to acquire new customers swiftly and sustainably.The Key to E-commerce Profitability 👑In e-commerce, profit reigns supreme. For Maison de Fashion, we can spend freely as long as we remain below the benchmark CAC, driving aMER and ensuring profitability.The Result? 🚀Over £10M in Paid Social sales! 💥

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I get asked “how can we scale quickly?” a lot 🤔The secret is in First Purchase Profitability (FPP) 💡Understanding your business's First Purchase Rate (FPR) will allow you to do that. FPR measures the % of new customers who make their first purchase, showing a clear indication of the acquisition funnel’s effectiveness.Acquiring new customers is always going to be more expensive than retaining existing ones - so ensuring FPP is essential.This is how you calculate First Purchase Profitability:→ First Order Revenue: how much you make from that purchase→ Cost of Goods Sold (COGS): direct costs attributed to the sale→ Other Variable Expenses: Inc. Shipping, Merchant Fees, Returns, Tax→ Blended Cost of Acquisition (CAC): total cost of acquiring a new customer→ Contribution Margin: the remainder - this is your first purchase profitTake your First Purchase Revenue, subtract COGS, Variable Expenses and your CAC, and this leaves you with your First Purchase Profit.This allows you to work out how much you can pay for a new customer to ensure profitability.Why does this help you scale quickly? 🚀The more profit (contribution margin) you make on that first purchase, the more momentum you can pump back into acquiring these new customers.This is how you scale quickly. 📈

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📌 If you can't find and convert from your audience among 2 billion Meta users, then maybe you're the problem?The reality is, with the right strategy, ads will work for any brand.The two main growth constraints we see are Ad Strategy and Execution, and a lack of awareness of Unit Economics.Ignoring Unit Economics is a big mistake. We often see brands fail to plan around profitability and lifetime value, leading to short-term, unsustainable growth.🤔 Understanding your CAC : LTV Ratio is crucial. Knowing a customer's value over time allows us to set clear acquisition targets.→ If an average customer purchases twice within a 12-month period.→ And their Average Order Value (AOV) is £50, this results in a 12-month customer Lifetime Value (LTV) of £100.→ With a gross margin of 75%, the brand earns £75 from each customer over a year.→ In theory, the brand could spend up to £74 on acquiring a customer and still be profitable.✅ This SHOULD guide how brands set up their meta campaigns for profitability, but we still see this oversight.Plan for First Purchase Profitability and you'll see much quicker growth 💰The failure to understand a store's unit economics leads to three main issues in ad accounts:→ Strategy DeficiencyWithout a well-defined strategy, engaging with audiences at different stages of their buying journey is impossible. Focus on first purchase profitability and then LTV. Each stage should be optimised for the relevant CPA.→ Undefined KPIsSetting clear Key Performance Indicators (KPIs) during onboarding is crucial. A deep dive into the Unit Economics will set your breakeven points and optimal KPIs. We see campaigns running that drain cash for brands.→ Creative LimitationsContinuous testing is vital. Many agencies stick to a single creative and copy, limiting the potential for discovering high-performing variations. We use software called Motion and set KPIs to assess creative performance against our benchmarks.I understand why some brands feel that "ads don't work for us" when they ignore the financials and aim for quick wins rather than sustained long-term profit.🗣 DM me if you want to learn how to calculate your CACfor your brand…

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We spend 7 figures a month on Paid Social for DTC brands... It's all about creative 📸These are some winners from Q2 📈 You can use this for your brandUse Motion (Creative Analytics), benchmark your engagement metrics and optimise around the highest performers. It's that simple...This is our process:→ Create→ Test→ Analyse→ Iterate→ RepeatHow are you testing creative? 🤔

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Struggling to make your copy convert? 🫨At Prospa, we're dedicated to crafting copy for DTC brands that consistently boosts monthly revenue.Explore these PROVEN copywriting frameworks with insights from our Senior CRM Strategist, Mitch Thorne.Mitch explore his seven essential frameworks designed to drive conversions:1. → Problem, Agitate, Solve (PAS): Address pain points and provide effective solutions.2. → Features, Advantages, Benefits (FAB): Emphasize product strengths and user benefits.3. → Before, After, Bridge (BAB): Showcase transformative journeys.4. → Attention, Interest, Desire, Action (AIDA): Create compelling calls to action.5. → Stop, Look, Action, Purchase (SLAP): Drive immediate engagement and conversions.6. → Star, Story, Solution (SSS): Leverage storytelling to connect and solve problems.7. → Clear, Concise, Compelling, Credible (4Cs): Ensure your message is always on point.These strategies can transform your copy, whether it's for emails, landing pages, or social media posts. Check out Mitch's blog to learn how to effectively bridge the gap between your brand and audience, and significantly enhance your copywriting impact.LINK in comments ⬇️

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EXCITING NEWS 🚨After recent growth, we're currently hiring for two Senior positions at Prospa to strengthen and expand our team 🚀 Our Paid Social and Paid Search teams are becoming industry leading and we're looking for A-players to help us continue this growth. The two roles available: ▪️ Head of Paid Social▪️ Senior Paid Search ManagerPlease visit our job page for further details on our Culture, Skills Required and Essential Experience for these roles. If you know anyone in your network who would be a good fit, apply with the link below or drop me a message.https://lnkd.in/eKZsN-Db

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🚀 We partnered with Drip Moda almost 3 years ago - we've grown from £30k/month to million pound months Here’s how we did it - (you can steal these tips for your store):🎨 Creative testing goes beyond looks; it’s about diving deep into data.🔍 Stuck with unprofitable Meta traffic and stagnant growth? That was Drip Moda before teaming up with Prospa.We introduced a dynamic creative strategy with regular updates and rigorous testing, honing in on Thumbstop Ratio (TSR) and Hold Ratio (HR) to grab and keep attention.💼 Using insights from Facebook, we launched effective Google Shopping and PMAX campaigns, hitting a blended 15+ ROAS. Continuous Shopify optimizations further boosted conversion rates.🗓️ Timing is key. Like our success with OOSC, we leveraged crucial dates and Q4/BFCM to accelerate Drip Moda’s growth.💰 Mastering aMER: By understanding our Acquisition Marketing Efficiency Ratio, we pinpointed profitability thresholds and set ideal targets. KEY TAKEAWAY: Differentiating new customer revenue from returning customers ensured every acquisition pound was well spent.🌟 We’re passionate about scaling ECOM brands and building strong partnerships.DM me to discover how our strategies can deliver outstanding results for your brand 🗣

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