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Ecommerce

The Casper Story & Why DTC Startups Lose Money

By April 13, 2022No Comments

You probably guessed it…ADVERTISING. When you hear (or heard,) of all these scaling at an incredible pace, it’s all been due to the heavy amount of ad spend that goes into acquiring new customers. Of course, retention in most cases is the key to long-term growth; however companies like Casper are (were) all about new customer growth.

What’s the issue? iOS14 update has changed the game on everyone. The algorithms no longer do all the marketing work for those that learned marketing from purely letting algorithms take on the heavy load of doing most of the work in the days where mediocre creative and ad copy were more than sufficient to get the conversions.

Recommended ETREND Story: CASPER: Popular DTC Brand, Unprofitable Business, Sells For $286 Million To Private Equity

FEATURED VIDEO:

No longer are the days that building a company while burning money toward customer acquisition is ‘best practice.’ Was it ever? It seemed that’s what created VC darlings…now PROFITABILITY is the new sexy, while showing some capacity to scale top-line.

BOTTOMLINE: Build a business that can sustain long-term growth creating a strategy for RETENTION as much as acquisition as a way to build. Here is what the new real sexy is: PROFITABILITY + RETENTION (LIFETIME VALUE)

Pablo Palatnik

Pablo Palatnik

Pablo Palatnik is an industry veteran in e-commerce & digital marketing with over 20 years experience. He successfully built and sold businesses; he now serves as the VP of Global E-Commerce for cosmetic dermatology brand DS Laboratories. Pablo is the Founder of Etrend.com.

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