Do you run a DTC startup?

And you sell a consumable CPG?

Here’s when to push for scale!

🧵… here🔥we🔥go!
If you didn’t read this previous thread, you should https://twitter.com/jackybh/status/1487619248969207810?s=20&t=qiD1Xq8CuS8XFe9Y1chcOw
1/ PRODUCT

You have iterated a few times. Product is close to being great

Customers send you personal emails, 5-star reviews and share their stories

And the negative ones complain about trivial things... “Oh, loved the soda, but the color is too dark”
2/ RETENTION

My experience is very narrow here, so please take with a grain of salt…

For a consumable product, like deo, and selling subs & one-offs
- Subs: Avg monthly churn < 15% and getting better
- Overall: 70%+ repurchase rate TTW

Recco: @sourcemedium for analytics
3/ YOUR MAIN FUNNEL

You have tested many things already.

Ad/gender/message-specific LPs, diff offers, gifts, etc… and you still have a long list of tests to run, but

Your main funnel is converting at 4%+

Recco: Google Optimize “redirect test”
4/ LTV/CAC ratio (MER)

Calculate using Gross-Profit-LTV instead of Revenue-LTV.

Most VCs want 3+

But If you are at 1.5+ you can push for growth and slowly increase the LTV

Recco: at 3+ don’t dilute yourself, use http://settle.co  @RosenZone
5/ MARGINS

Your Gross Margin is at 65%+

Assuming that COGS = Landed cost + fulfillment + CC fees + Avg Shipping cost

It varies between categories, but for low AOV products this is a good benchmark
6/ EMAIL MARKETING

This channel represents AT LEAST 20% of your DTC revenue.

Ideally 30% or more.
7/ TEAM

You have the key positions covered. Doesn’t have to be all in-house

Paid social, paid search, SEO, email marketing, customer support, retention, operations (logistics).
8/ EXTENDED TEAM

You have developed a strong rolodex of quality creators, video producers, consultants, shopify experts, etc

This is allowing you to quickly execute on any new idea/tactic
9/ MANUFACTURING

You found a manufacturer that not only has the capacity to scale, but is supportive.

Gives you priority, suggests improvements to the product, extends you credit and heck maybe even invested in your business!
10/ PATH TO RETAIL

You already met the category buyers of your target retailers, and know what you need to work on to get the product on the shelves.

P.S: I love DTC. But brick-and-mortar still accounts for 80% of retail sales.
11/ CAPITAL

Yes, how else would you scale without it?

At least 18 to 24 months of runway
12/ LFG

http://Duradry.com  is ready to scale and we’re raising a $2M SEED

We'll disrupt incumbents with a MORE effective antiperspirant that's also packed with natural ingredients.

Join us!
a) Request our deck via DM
b) Let’s hop on a call asap 🔥
c) Requests samples
You can follow @jackybh.
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