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@MRWindle from
@hexclad is drop-dead brilliant. (Get it?)
Here’s his 2-part framework on building ecommerce funnels.
1️⃣ Profit from day one
2️⃣ Look beyond first purchase
Tension between those principles? Not if you also take to heart his final words.
Let’s break ‘em down ↓
1️⃣ Profit from day one
- Keep a close eye on MER
- Use cohort-based tracking
MER? Marketing Efficiency Ratio = total revenue ÷ total ad spend
Especially based on channels, funnels (i.e., offers), and products.
“You’re only as good as your UTMs.” Quote credit:
@couuor
2️⃣ Look beyond first purchase
- Focus on lifetime value (LTV)
- Adjust acquisition targets
Especially for higher AOV, consideration, and durable goods.
“When someone purchases knives as their first product, they’re going to have a much higher LTV than our traditional set purchasers.”
This hard data then translates into different CAC and MER targets.
But above all: “Be as honest as possible with yourself as possible. Both in your initial setup and in behavior over time.”
“The DTC world is littered with brands that didn’t consider profitability and didn’t make it all the way through their burndown charts.”