“We need to grow 25% year-over-year — at a 4x return!”
If you’re the marketing director for a $50M+ ecommerce business, you’ve heard some version of this from the company C-suite.
As a goal, it makes sense — of course they want to grow profitably.
But, at this level of revenue, it’s much easier said than done.
Your executive board is looking for ROI. It’s all they want to see. So most marketers resort to an obvious tactic:
Maximizing the ROI of individual channels.
After all, if you can show leadership that paid social, paid search, email marketing etc. all have 3x, 4x, 5x, 10x ROI, they’ll be happy, right?
Yes … until they discover short-term profits have turned into long-term losses.
That’s because focusing on efficiency leads to a predictable set of behaviors:
- Pushing paid-social budget deeper into remarketing
- Overspending on easy-win branded search campaigns
- Using email to run discounts and boost same-day revenue
All of a sudden, your customer base has dried up. Soon after, top-line revenue follows. And then — worst of all — bottom-line revenue.
So … what should you do instead?
The short answer: acquire customers at a lower ROI while maintaining a profitable LTV:CAC.
The long answer: implement the thoughtwork and techniques in the Enterprise Scaling Guide.
It’ll show you how to actually make money as a $50M+ ecommerce business — and how to show your leadership team exactly how you’re making money.
