There's No Such Thing As "Revenue"

I tweeted a version of that episode title not long ago. It's nonsense: there is, of course, such a thing as revenue. But in DTC, revenue is also one of the metrics I reference the least often. Instead, I'm constantly breaking it down into two smaller metrics, both of which tell me a lot more: New Customer Revenue and Returning Customer Revenue. In fact, those are the first two things I look at when I analyze a business. In this episode I'll not only explain how I do that, but why I believe developing that same instinct is at the foundation of good growth thinking for every ecommerce brand. EPISODE HIGHLIGHTS [00:00:09] New vs. Returning Customer Revenue.  [00:04:25] Returning customer revenue.  [00:06:11] High LTV customers. [00:09:27] Customer movement and strategy. [00:12:02] Forecasting ad spend and revenue.  [00:15:01] Forecasting DTC Business.  [00:19:38] CAC and LTV importance.  [00:20:47] Customer Revenue and Profit. [00:24:26] High LTV Brands. EPISODE SPONSOR Visit Settle at ⁠⁠www.settle.com/andrewfaris⁠⁠ for a complete platform to manage Bill Pay/AP with fast access to extended payment terms at competitive rates and no personal guarantee. OTHER EPISODES REFERENCED IN THIS SHOW "What To Do When You Have Great LTV" (Apple, Spotify) FOLLOW UP WITH ANDREW Follow Andrew on Twitter: ⁠⁠⁠⁠⁠@andrewjfaris⁠⁠⁠⁠⁠ Email Andrew: [email protected] Work with Andrew: ⁠⁠⁠⁠⁠www.ajfgrowth.com⁠⁠⁠⁠⁠ EPISODE MUSIC Music Intro: "⁠⁠⁠⁠⁠Tell Me Mama⁠⁠⁠⁠⁠" by The Devious Means Music Outro: "⁠⁠⁠⁠⁠Rusty Little Scissors⁠⁠⁠⁠⁠" by The Devious Means