“Many DTC businesses will naturally hit a plateau, which can happen for a variety of reasons. Sometimes, it’s when they move from focusing on growth to focusing on profitability,” Whitcombe said. Often the problem is caused by an obsessive focus on cost per customer acquisition. “Over time, you end up acquiring lower and lower value customers.”
Whitcombe recommends thinking about the long-term value of engaged customers. Whether it’s on Facebook or another platform, authenticity is key. “Advertisers that take a more authentic approach using things like Boomerangs or shooting creative on their iPhone are actually seeing more success, because they’re producing a lot of content.”
