Bundles or subscriptions? Why not both ? Bundles + Subscriptions bring together two powerful levers into one tactic: Get all of the AoV and margin benefits from a bundled product while simultaneously boosting LTV and repeat purchase rates via a subscription offering. It’s not surprising to see this blended tactic employed by one of the most successful DTC beauty brands in the game today - Sol de Janeiro. Let’s take a look at the Brazilian Icons Duo from SDJ: What I love about the strategy of this offer: -“X for the price of 1”: How many additional purchases can I get that customer to make after only paying to acquire them once? -Building future upselling opportunities: In this example, not only do you get the recurring subscription revenue but you also introduce up-selling opportunities from the samples they choose to include with this purchase. Now imagine hypothetically, that they did this with other top selling SKUs? That’s how you create a force-multiplier in your business with your pricing strategy. #growth #DTC #ecommerce #marketing #business #strategy
Zachary Cascalho Cox’s Post
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Creative Media Buyer | Digital Marketer at Ecom Automate | Driving More Sales And Leads In 7 Days (Using Unique Landing Pages, Facebook Ads and Google Ads)
After working with 200+ DTC brands, these are the only 2 pricing strategies I'd use to INCREASE AOV! 1) Product bundles: Strategically offering more value for a higher price 2) Post-purchase upsell: Sell more of the same or complimentary products Remember, DTC brands should focus on value, not just price. Be the solution, not just the seller.
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Top 4 levers DTC brands can pull to increase Average Order Value (AOV): 1. Increase price (Enhance perceived value, optimize pricing strategy) 2. Pre-purchase upsell (Strategically bundle products) 3. Post-purchase upsell (Offer relevant add-ons) 4. Continuity upsell (Introduce subscription models)
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DTC Brands, DO NOT assume that subscriptions are better, especially in a lower AOV category. 30 Day LTV 60 Day LTV 180 Day LTV 365 Day LTV & compare your customer types (See attached) When you have a good product, people will come back. They will see your upsell again & take it! They will buy more! They will not be mad at your subscription! You can do subscriptions right, but do not assume they are automatically "Better". All I am asking is that you MEASURE IT! My DMs are open if you need help 😜
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6x Ecomm Investor | Advisor @ WKND Digital | DTC & Agency Consultant | Official Dark Chocolate Connoisseur
If your DTC brand is sub $5M a year in revenue, your CRO needs to looks like: 1️⃣ Offer Tests 2️⃣ Pricing Tests 3️⃣ Product Tests 4️⃣ Landing Page Tests 5️⃣ Pre-sell Page Tests Forget all the other stuff...
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6x Ecomm Investor | Advisor @ WKND Digital | DTC & Agency Consultant | Official Dark Chocolate Connoisseur
If your DTC brand is sub $5M a year in revenue, your CRO needs to looks like: 1️⃣ Offer Tests 2️⃣ Pricing Tests 3️⃣ Product Tests 4️⃣ Landing Page Tests 5️⃣ Pre-sell Page Tests Forget all the other stuff...
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Winback is an often-overlooked opportunity to boost LTV, but it's one of the more difficult flows to nail. Too often, brands settle for a simple and generic 'discount-delivery' flow with a 5-10-15% ladder. We wrote a 10-page, full guide on how 9-figure brands can do it better. https://lnkd.in/dT4Fbh6T
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The subscription box market is projected to reach a value of 74.2 billion USD by 2028. If you are a DTC brand or online retailer and are not offering subscriptions, you are missing out on building recurring revenue and loyal customers. Book a call with one of our team to learn how adding a subscription option to your website can generate revenue and increase loyalty.
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I help your biz grow 3X in 90 days or you don't pay | Generated over $500k+ a month for 15+ businesses | 𝐂𝐞𝐫𝐭𝐢𝐟𝐢𝐞𝐝 𝐅𝐚𝐜𝐞𝐛𝐨𝐨𝐤 𝐚𝐧𝐝 𝐓𝐢𝐤𝐓𝐨𝐤 𝐚𝐝𝐬 𝐄𝐱𝐩𝐞𝐫𝐭
📌 Calling Out all DTC brands Here's how you can make people believe in your product ⤵️ 🎯 Pro Tip: Be confident in your product and what you sell First. #socialmediamarketing #ecommerce #DTC #Dtcbrands #mediabuyer
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The Ultimate Guide To Increase Your AOV Up to 70% (for online retailers & DTC brands) Here is how: 1. Increase product value Increase your product's worth in the eyes of your customers Show them how life transforms for the better with what you offer Show them that you have the best solution on the market for their desires and problems You are the best option on the market 2. Introduce New Products Understand and address the evolving needs of your customers How? By giving your existing customers new products that solve other of their problems And at the same time attract new ones Make sure your products are better than what's out already on the market 3. Strategic Up-sells & Bundles Squeeze more revenue from every visitor by giving them more options to buy Your up-sells must be relevant to what the customer is already buying Your product bundles must make sense and not pair candles with socks Strategic upsells can boost your revenue without acquiring new customers 4. Incentivise Spending: Offer perks like free shipping or gifts when they hit a certain spending threshold Use a game-style bar on the cart drawer and make it easy to hit those rewards Experiment with different offers and even add digital products 5. Special Savings: Everyone loves a good deal Offer promotions like "Buy 2, Save More" or host special events to tempt customers to spend more These types of offers create urgency as long as you make them real _ As a little bonus for sticking with me till the very end, I can help you increase your AOV up to 73% for FREE 👉 All you have to do is click here: https://bit.ly/48OTraR
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Just got off a call with one of our growing brands and we thought about a critical issue many eComs overlook: 𝙝𝙤𝙬 𝙙𝙞𝙨𝙘𝙤𝙪𝙣𝙩𝙞𝙣𝙜 𝙘𝙖𝙣 𝙨𝙚𝙧𝙞𝙤𝙪𝙨𝙡𝙮 𝙝𝙪𝙧𝙩 𝙮𝙤𝙪𝙧 𝙇𝙏𝙑... Many brands rely on discounts to attract new customers or to boost your conversion rates. This strategy could really hurt your LTV in 2 significant ways. 1. You’re losing immediate margin on the first purchase. 2. You’re likely acquiring lower-quality customers. Why? Because these customers are trained to expect discounts and often only buy discounted items. So let’s do the math... Full-Priced: AOV: $80 Discount Rate: 0% Expenses/COGS: $40 Orders per Customer: 1.5 LTV Calculation: ($80 - $40) * 1.5 = $60 Discounted: AOV: $80 Discount Rate: 25% Expenses/COGS: $40 Orders per Customer: 1.5 LTV Calculation: ($80 - $40 - $20 discount) * 1.5 = $30 Look at the difference. In the full-priced scenario, you can afford a breakeven CAC of $60. But if you use the same CAC in the discount scenario, you’ll lose $30 per customer. That’s a fast track to going broke. So... should you avoid discounts altogether? Not necessarily. Here's what we started considering: - If your a brand with higher margins, you can afford more discounts. - Lower CAC means you can offer more discounts. - Get creative with discounts... think gifts with purchase (GWP), bundles, upgraded shipping, or cash back on future purchases. - Don’t expect the same LTV from all customers. Segment them and adjust your strategy accordingly. - When you reach the limits of what your economics can support, it’s time to pull back. - Brands that find the right balance between acquisition and long-term profitability are the ones that will thrive and grow. TL;DR: Discounts can damage your LTV by cutting margins and attracting less loyal customers. Always crunch the numbers for your specific situation and consider creative discount strategies.
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