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Common Thread Collective's

Diagnostic Results

Your Growth Quotient is:
unknown

How is the brand doing overall?

Some of your metrics are below target, resulting in a suboptimal GQ score and hindering your ability to grow your ecommerce business.

However, the good news is that the next steps to rebuilding your growth potential are clear.
Metric Your Score BenchmarkTarget Average GQ +/-
Cost of Delivery (COD) as a Percent of RevenueCOD Error!% <30% 47.37% Error!
Operating Expenses as a Percent of RevenueOPEX Error!% <25% 24.26% Error!
Number of Distribution Channels# Dist. Channels Error! ≥3 2.67 Error!

Key Issues

Issue:

High Variable Costs

Your Cost of Delivery exceeds 30% of revenue, which means that your product costs are taking a sizable chunk out of your first-order margin.

While we would certainly recommend looking at ways to reduce those costs, we also understand that may not be the easiest lever to pull.
cost of delivery

Recommendation:

Focus on Efficient Acquisition

If cutting costs isn't feasible, efficiency becomes paramount to preserving your first-order profitability.

We'd recommend:
  • Shoring up your campaign structure to let the algorithm do what it does best.
    Use this resource to build better campaign structures.
  • ​Focusing on developing more-effective creative.
    Use this 5-step process to ideate better ad creative and messaging.
The other route is to increase AOV — click here for tactics to affect this number and increase your overall contribution margin.
operational expenses

Issue:

High Fixed Costs

Your OPEX percentage suggests that your overhead costs are affecting your ability to scale your business quickly.

Recommendation:

Cut Overhead

Consider finding and eliminating inefficiencies — review agency fees, payroll, tech expenses and office costs to find breathing room and get your OPEX closer to 25% or less of revenue.

For more on our approach to managing hard costs, read our tactical guide to building an antifragile ecommerce operation.

Issue:

Limited Distribution Channels

Put simply, you may have too many eggs in one basket.

Diversifying your distribution channels decreases the overall risk to your business.
distribution channels

Recommendation:

Expand If You Can

Consider opening another line of distribution if possible — whether that's Amazon, wholesale, retail, or something else, selling in more channels increases the downside protection of all your channels.

For more on our approach to managing distribution channels, read our tactical guide to building an antifragile ecommerce operation.

Next Steps

Cost of Delivery

Your Cost of Delivery is at or below our threshold — that means your brand’s variable costs won’t get in the way of achieving both first-order profitability and long-term customer value.

Of course, if you want to dig deeper and find even more margin, we recommend: 
  • Shoring up your campaign structure to let the algorithm do what it does best.
    Use this resource to build better campaign structures.
  • Developing more-effective creative.
    Use this 5-step process to ideate better ad creative and messaging.
The other route is to increase AOV — click here for tactics to affect this number and increase your overall contribution margin.
cost of delivery
operational expenses

Operating Expenses

Your Operating Expenses are in a good place — brands at or below our threshold generally don’t have an issue with fixed costs impeding profitable growth.

For more on our approach to managing hard costs, read our tactical guide to building an antifragile ecommerce operation.

Number of Distribution Channels

Your brand has at least 3 sales channels, which reduces risk if any one channel under-performs. 

For more on our approach to managing distribution channels, read our tactical guide to building an antifragile ecommerce operation.
distribution channels

Upgrade to the Full Diagnostic Toolkit

Here's what you'll get in the full version of the assessment:

1. All 10 Growth Metrics

Plug key brand data into our step-by-step workflow, and we’ll automatically calculate the 10 growth metrics for you.

2. Your Complete GQ Report

Once it’s submitted, you’ll get a downloadable report laying out your performance against each benchmark.

3. Detailed Action Steps

Included in the report: directional guidance on what to actually do now that you understand where your brand needs improvement.

Plus as an added bonus, you also get FREE access to …

Statlas

Data at your fingertips

Get a 30-day free trial of Statlas — our proprietary data analysis tool.
Statlas is critical to entering data into the diagnostic correctly. You can do the assessment without Statlas … theoretically. But it’ll make finding the data points you’ll need — metrics that most businesses don’t use or even know about — much easier.

Ready to find your biggest growth opportunities?

The Ecommerce Diagnostic Toolkit + 1 Free Month of Statlas

Total Value $998

Get access today for Only:

$297

80% OFF
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