Planning and Tracking Daily Contribution Margin: Statlas Jam Episode 2

Common Thread Collective

by Common Thread Collective

Jan. 10 2024

Welcome to Statlas Jam, Episode 2!

If you missed the first episode in this series, you can catch it here, Treasure Hunting for Profit. In today's episode, we're diving into the crucial topic of planning and tracking daily contribution margin.

📈 Contribution Margin

Contribution margin, the key focus of our discussion, is your net revenue minus all variable expenses.

It goes beyond gross margin, including elements like payment processor fees and additional fulfillment expenses. 

But why does it matter …?

Because every dollar left after subtracting variable expenses, including ad spend, contributes to covering fixed expenses.

💡 We'll guide you through understanding and calculating contribution margin, emphasizing the critical role it plays in determining profitability for e-commerce brands.

It's not just a percentage game; it's about every single dollar making an impact.

Tracking contribution margin can be complex, but we'll demonstrate how we use Statlas to simplify the process. From defining revenue components to breaking down variable expenses, we'll show you step-by-step how to gain visibility into your daily contribution margin.

Planning & Tracking

Planning is equally vital, and we'll reveal the magic of our integration with Statlas. We discuss how to build a model that sets the right budget to maximize contribution margin, combining new customer spending efficiency with cohort-specific LTV predictive models.

But it doesn't stop there; we'll share insights into adjusting daily expectations based on historical revenue patterns and marketing calendar variations.

Our goal is to help you not only track but proactively manage your daily contribution margin to ensure predictable, profitable growth.

Join us as we explore the tools and techniques within Statlas, providing actionable insights to keep your marketing team ahead of the game.

Dive deep into daily reports, spot trends, and understand where you stand relative to your expectations. Get ready for a data-driven journey towards maximizing contribution margin and driving sustainable growth.

Let's empower your marketing team to make every dollar count!

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Common Thread Collective

Common Thread Collective is the leading source of strategy and insight serving DTC ecommerce businesses. From agency services to educational resources for eccomerce leaders and marketers, CTC is committed to helping you do your job better.

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