Don't Decrease Costs (I'm not crazy)

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Welcome to this issue of The DTC Insider newsletter. ๐Ÿ‘‹

We'll deliver the latest growth marketing news and trends in the DTC space straight to your inbox.

Topics weโ€™ll cover today:

๐Ÿ’  Don't Decrease Costs

๐Ÿ’  Meta Launches AI-Powered Ad Creativity Tools

๐Ÿ’  The Non-So-Stalker Method To Land Nordstrom

Don't Decrease Costs

Many e-commerce brands struggle with profitability because they mainly focus on decreasing costs, instead of increasing value.

I get comments such as:

๏ปฟ๐Ÿ“‰๏ปฟ "Decrease ad spend"
๏ปฟ๐Ÿ˜ซ๏ปฟ "Let's reduce or skip video production"
๏ปฟ๐Ÿคฏ๏ปฟ "Focus only on getting new customers"
๏ปฟ๐Ÿค”๏ปฟ "Let's do a 50% discount promo"
๏ปฟ๐Ÿ’ฒ๏ปฟ And even..."let's reduce prices on our website"

The problem is that there's a limit to how much you can decrease costs without sacrificing growth and missing the mark on your business goals.

However, there's an infinite opportunity to increase value.

But brands don't seem to be paying attention.

And I know they do it because they need to find a way to keep their business alive.

But it's not the right move.

All this will do is hurt your bottom line.

So, I'm here to tell you that there's another way.

One that will not only help your revenue but also your profitability.

Itโ€™s about mapping out your customersโ€™ purchase journey and looking for improvements.

Hereโ€™s an example: 

Mapping out your customer journey:

โž 1st order: 42% of customers buy Pants. AOV is $79.

โž 2nd order: 80% of repeat orders happen within 60 days, and they typically buy more of what they bought on the first one.


โž Improve AOV for the 1st order: through bundles or upsells aligned with what they typically buy on the 1st order.

โž Create landing pages for pants: showcase the best-selling pants and include add-on products and bundles to encourage people to buy them too.

โž Gamified cart: ie. โ€œYouโ€™re $10 away from getting free shipping.โ€

โž Increase LTV right away: if 42% of first-time customers buy pants, create a post-purchase flow for this product type to encourage them to buy something else (ie. more of the same or add-on products).

โž Decrease time between orders: segment your customers and define a communication strategy that involves email campaigns and win-back flows.

Of course, this is a simple, generic, example.

But I think I made my point: gather data about your customers' purchase journey and improve it.

It's not simple and will require testing.

But unlike reducing costs, the sky is the limit.


At my agency we use a tool - which I'm not affiliated with - that helps us understand the purchase journey with info that Shopify doesn't provide us with.

I've recorded this quick video to show you how we use it to unlock value and come up with great ideas.


Would you like to get ideas to increase value and profitability that are specific to your brand?

Feel free to book a discovery call with my team at BSR Digital and we'll see how we can help.

Meta Launches AI-Powered Ad Creativity Tools

A few months ago I mentioned these AI features were coming to Meta.

Now they're here.

According to Meta, these features will help businesses create more engaging ad content across Facebook and Instagram.

There are 2 main updates:

โž Image Generation: advertisers can now create complete image variations inspired by their original ad creative, including different backgrounds, text overlays, and adjustments to products shown.

โž Text Generation: Metaโ€™s AI will suggest ad headlines and body text tailored to an advertiserโ€™s brand voice and key selling points from previous campaigns.

Would you use these features?

Most Brands Are Overlooking This Growth Lever

Would you give up if Nordstrom didn't reply to your first 17 emails?

I would.

But not Francesco Urso.

In this episode of The DTC Insider podcast, the founder of Wolf Project shares his lessons learned from quitting his 9-5, landing Nordstrom, and many more awesome stuff.

If you are thinking of entering retail and would love to learn how this company did it.

Then tune in!

We discussed:

๐Ÿ‘‰ His Entrepreneurial Journey

๐Ÿ‘‰ Behind the Scenes of the Partnership with Nordstrom

๐Ÿ‘‰ Adapting to Economic Challenges: Business Strategy Adjustments

๐Ÿ‘‰ The Decision to Not Prioritize Direct-to-Consumer (DTC) Channels

๐Ÿ‘‰ Pros and Cons of DTC in the Skincare Industry

๐Ÿ‘‰ Lessons Learned and Insights Gained

๐Ÿ‘‰ Navigating Challenges as an Entrepreneur

๐Ÿ‘‰ "Quit to Win": Inspiration Behind the Book

๐ŸŽง Tune in to our latest episode:

Want to check out more podcast episodes?

Here are some of the top-listened episodes:

๏ปฟ๐Ÿ’Ž๏ปฟ How Frost Buddy Went From $0 to $30M in Under 3 Years with Brock Mammoser

๏ปฟ๐Ÿ’Ž๏ปฟ Give Up Your Stuff, Not Your Dream with Jules Weldon and Stacey Pierce

Work for a DTC Brand?

Do you own or work for a DTC brand and are feeling a bit stuck in your brand's growth journey?

At BSR Digital, we've been in the trenches with DTC brands since 2013, helping them break through barriers and soar to new heights.

If you're ready to shake things up and turbocharge your growth, let's chat!

Book a discovery call with us, and let's brainstorm some game-changing ideas together.

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