DTC Channel Profitability Strategy

The Challenge: Meet increased gross revenue goals on ScotchPorter.com while increasing channel profitability.

The Journey: I dissected each aspect of our customer experience to identify ways to optimize the entire journey. Beginning with paid media, we tested various versions of creative frequently to optimize and consistently implement ads that resonated the most with customers. The paid media mix was adjusted to focus more on paid search and YouTube ads as the ROAS was significantly higher (3-4X) than paid social (2x). To consistently add to our top-of-funnel (TOFU), I directed the team to implement a lead gen campaign across paid social to increase our new customer rate. The campaign was paired with specialized welcome flows that provided offers, brand story, and product education to warm leads.

We reviewed each product detail page (PDP) and implemented content changes, including product education, rich media, and regimen building suggestions to increase AOV. SEO updates were made sitewide to increase organic search results along with re-merchandising of the site to focus on best-sellers and products with higher MSRPs.

We implemented A/B testing in several areas including the free shipping threshold and email + SMS communications to increase the AOV. I spearheaded the strategy to increase AOV through decreasing the use of percentage-based discounts and implementing gift with purchase (GWP) promotions. The GWP promotions were paired with a spend threshold that was higher than free shipping to maximize order profitability. A/B testing was completed to understand the optimal spent threshold. I worked with our agencies to implement Upsell/Cross sell applications which had a significant impact on our AOV.

The Outcome: We were able to increase channel contribution margin by 33% points vs previous year. In addition, we achieved an AOV increase of 12% and a discount rate reduction of 13.2% points YoY while decreasing marketing and advertising spend by 75%. The SEO optimizations led to a 238% increase in monthly SEO reach. A/B testing led to an increase in free shipping threshold from $50 to $60 and an average GWP spend threshold of $65.

Skills: #Ecommerce #DTC #CRM #GTMstrategy #Strategy #CrossFunctionalTeamLeadership

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