We just casually 3x’d Hollow’s Email & SMS opt-ins over the weekend.
I've been dying to test Recart so we rolled it out and the initial results are wild.
Like "this doesn't make sense" wild.
Going to be digging into the numbers more to figure out what's leading to the spike
When we first launched @Recartapp in Jan 2023, the team had 2 weeks to turn around on our promo and they did it anyway.
In the subsequent 12 months, SMS doubled retention revenue while emails held steady.
An AI agent secretly scraped Shopify’s top 10k stores then signed up for …
- 7.5k popups
- 42k emails
- 18.7k texts
Screenshots, data, takeaways, and insights from 20+ DTC leaders ↓
https://t.co/kjzyJWtF2t
As an Amazon native brand, DTC felt impossible.
But we've broken through in the last year, having several $1m+ weeks.
This was the strategy pivot that unlocked the channel:
We stopped competing on price with Amazon and Target on our website.
There are 3 reasons this strategy was doomed from the start:
1. Our margins prohibited paid customer acquisition.
2. DTC was less profitable than Amazon. (shipping is expensive)
3. Our website didn't add value to returning customers over our other channels.
We realized DTC has unique strengths that had to be used to add value as an omni-channel brand. What if Amazon and target are our customer acquisition channels and DTC is THE best place for our customers to shop.
We've seen 3 unique strengths of DTC resonate with our customers:
1. Limited Time Drops:
On Amazon, you can't talk to your customers. This is the power of your website. E-mail, social followers and SMS lists are valuable and cheap.
We make cool new styles of products that we think our customers want. When it drops, we tap our customers on the shoulder. They know it might sell out fast.
If done well, drops might sell out in minutes.
2. Bundling:
Amazon native brands run at low margins to convert well on generic keywords. This severely limits paying for customers on DTC.
We've found Amazon brands can run high website margins by increasing average order value (AOV).
We make 30% margins on single unit ordrs. However, multiple unit orders average 50% margins. Our average selling price is $20 but AOV is $60.
We incentivize higher AOV with in cart discount tiers. Free shipping at $75, $10 off at $100 and $20 off at $150.
It may cost us $12 to ship one unit but only $14 to ship 4 units together. DTC is our only channel with this bulk shipping dynamic.
3. Personalization:
Creating a unique brand experience is a strength of DTC. For drinkware, personalized engraving checks that box.
Our highest value customers love personalization.
No other channel can offer it like our website. We're investing heavily in a new interface that will launch in August this year.
My advice to Amazon native brands:
Let Amazon do what it's great at. Selling single units the cheapest with free 2-day shipping.
Find how the unique strengths of DTC can best serve your customers. There are many other levers like quizzes, loyalty programs, etc.
We’re in year 9 and our website snowball is finally rolling downhill. It has taken time and the right strategy but it’s worth the effort.
@adamhump
The results of the big test the big brain of Adam Hump cane up with are here-thanks Adam.
Theory: no pop up using retention will be a winner
Popup VS No Popup - the debate is over!
We ran a 30-day test to measure the impact of revenue by those who do, or do not see, our welcome popup.
THE TEST:
We used @Recartapp to run an A/B test on a revenue-based popup that consisted of 100K visitors.
Group 1 saw a 10% off popup for email and SMS signup.
Group 2️ did NOT see any popups or offers.
We tagged and followed visitors to measure their spending.
Group 1 (with popup):
Rev Per Visitor $10.13
AOV $214
Email optins +2,880
SMS optins +1,698
38% used a discount code / avg of 12% per discount used.
Generating $468K in revenue.
Group 2 (no popup):
Rev Per Visitor $10.16
AOV $209
Email optins: 0
SMS optins: 0
26% used a discount code / avg of 16% per discount used.
Generating $472K.
In short - we’re keeping popups!
And here’s why …
People spend the same amount of money on the website — so showing the pop-up doesn't cause any revenue loss.
However, it did result in gaining about 3,000 new email subscribers and 2,000 new SMS subscribers, growing the list significantly quick.
Therefore, you can grow your list WITHOUT losing revenue.
In fact, we’re not yet measuring the long-term effects of the email/SMS list growth, but we know it’s a big revenue factor for us.
So all things considered … we’re letting the pop-ups run.
Thanks @recartapp@somaatoth and @AaronOrendorff for the intro to recart
Join over 20 of the biggest brands in DTC like Hexclad, True Classic, and Mad Rabbit!
This brain trust will get into the guts of how they’re going all in on creative to gain those conversions that surge the bottomline.
And you’re invited 😏
https://t.co/s6BGCcjzzX
Brutiful heat (sound on) …
Why? Cause next week an all-star, heavy-hitters, ridiculously-stacked event is coming!
Yeah, it’s about ads. Sure, it’s got leaders from paid-media powerhouses like:
- Ridge
- HexClad
- Mad Rabbit
- Portland Leather
- True Classic
But you’ll also get insights on how to use PR, SEO, organic content, even customer experience from …
- KURU
- SuitShop
- Braxley Bands
- Flewd
- Fat Miilk Coffee
… to unlock creative x conversions
Meta a dumpster fire?
Worried about TikTok getting banned?
Not sure how you’re going to hit your YoY targets?
Then join us (link below)!
Everyone I’m about to tag has personally guaranteed you’ll double your Q2 EBITA by attending.
LEGAL DISCLAIMER: No presenter has guaranteed anything.
Big news: I'm presenting at @Recartapp's webinar on April 17th, alongside DTC leaders from @ridgewallet, @hexclad, @trueclassictees, @KnoCommerce, and more.
📍 Topic: One Thing to Unleash Creative x Conversion
📍 My Subject: Kynship's top-level approach to forecasting
📍 Problem to solve: lofty ambitions without data to back it up
I'll be breaking down:
➝ How to make every advertising dollar count
➝ Why creative is the solution to conversions
➝ How we approach building a financial forecast
➝ Why unit economics (per-product SKU/per-offer) factor in
➝ How to set "X" CPA targets for "Y" campaign outcomes
The best part? It's quick action — everyone gets 5 minutes max. Come learn new things about conversion from some of the best in the business.
Hit the link here if you're interested: https://t.co/WapWVgUrex
Few months back I was about 60 days into my 90 day commitment to @recart.
They were killing it but my team wanted to go in a different direction. So I contacted @AaronOrendorff and said we are going to bail.
He’s like man what’s up with that. You guys have not been cooperating with us, giving us zero notice on upcoming campaigns(they signed up for emails to find out when our campaigns were coming out lol)
You fuckers also haven’t approved our flows.
Go ahead and leave but you never gave us what we needed.
I was bummed that my team had dropped the ball. So we decided to recommit and give them what they needed.
It’s one of our best performing channels right now.
245 new customers last month aov $193.
“Our goal is to become a billion-dollar brand. We know we can’t rely just on performance marketing.”
That’s @BrettSwensen → VP of Marketing @wearkizik.
A 9-figure brand that grew almost entirely off its direct-response chops.
But now, the team is focused on how to balance performance efforts with a strong and identifiable brand.
The challenge
“Instead of showing people a mirror into their current lives, how do we become a brand that shows people a window into their aspirations?”
The actions
- Consumer deep dives
- One-on-one interviews
- Quant + qualitative studies
The metrics
- Branded search
- Post-purchase surveys
- Creative ad recall
- Share of voice
- Uncovering brand arc
Then … marrying all that with a focus on product design, an aesthetic language & higher-order benefits.
The goal
People who say: “I would defend the brand no matter what.
“If you can get those people on your side, game over. They are the most loyal. They will shout from the rooftops. They will follow you to the ends of the earth. Those are the people that we want to bring into our tribe and our community.
“On the performance side, we’re not stopping what we’re doing.
“But we’re going to be tighter with our messaging and more deliberate with how we speak to our consumers.”
Watch Brett explain it all in under five minutes ↓
Another great "feature" about @Recartapp is that it's fully managed.
I suspect with most brands, SMS is just a channel that isn't fully maximized. That was the case with us.
We did 2x the amount of revenue with Recart in 6 months last year than we did in all of 2022.
To be fair, once the channel is maximized, you have to be super careful with ROI, but a lot of brands are just leaving money on the table here by not sending enough texts.
If anyone feels like joining my group chat during @Recartapp's The One Thing today and tomorrow, DM me.
We have a lot of fun. Only rule: no screenshots. No sharing. No mean gossip.