Without This Number, Your DTC Brand Is Running on Hope
Shownotes
“You’re going to set some money on fire before you ever get to flip these cards over.”
How much can you spend on a customer when the first order loses money?
Mike Beckham (CEO, Simple Modern) walks Matt Bertulli (Founder, Pela Case & Lomi), Cody Plofker (Advisor & fmr. CEO, Jones Road Beauty) and Curtis Christopherson (Chief Growth Officer, Ammortal) through the profit model behind consumable brands, using Trevi’s retention data. He measures every customer three ways.
1. Lifetime Value: Profit per customer over 6 months
2. Net LTV: LTV minus what you paid to acquire them
3. Nominal LTV: Net LTV times customers acquired
Winks just pushed its CAC under $100. Mike shows why few brands earn $100 back from a customer in six months. Then the hosts split on forcing subscriptions, and Mike warns that longer paybacks have bankrupted brands.
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