Preston Rutherford, co-founder of Chubbies, shares the critical shift from a pure performance marketing approach to a brand-building strategy that led to a 9-figure exit. This episode is a must-listen for ecommerce operators looking to build a resilient, profitable business that isn't solely reliant on paid acquisition, focusing on how to quantify and grow your brand for long-term success and successful acquisition.
Key takeaways
Define brand as 'the revenue you have when you turn off all your marketing, new product launches, and discounts.' This is your resilient base of revenue, distinct from short-term paid performance.
Shift new customer acquisition focus from solely ROAS and bottom-funnel performance to cultivating direct and organic traffic by changing perceptions of your brand. Prioritize growth in this 'resilient base of new customer revenue' over solely optimizing paid channels.
Recognize that over-reliance on performance marketing metrics like ROAS can mask underlying business unprofitability, as these metrics don't always correlate with true business health or profit growth.
Actively engage with customers to deliver on product promise and experience, as this builds a 'resilient base of repeat customers,' complementing new customer brand building.
Challenge the common perception of brand marketing as unmeasurable by focusing on quantifiable outcomes like direct site visits and organic searches, treating it with the same accountability as performance marketing.
When forecasting, segment returning customer revenue into cohorts (e.g., past 180-day customers vs. active non-recent customers) to better understand and predict the resilient base of revenue.
In this episode of the Influencer Marketing Blueprint, your co-host Cody sits down with Preston Rutherford to discuss his 9-figure exit from apparel brand Chubbies. Preston co-founded popular men’s lifestyle brand Chubbies and shares his insights on measuring brand success, optimizing for contribution margin, and leveraging partnerships with influencers.They discuss the importance of brand building, the controversy surrounding it, and the integration of brand into direct response marketing.This conversation highlights the need for a holistic approach combining brand, influencer marketing, and profitability to drive long-term success.
00:00 Introduction
02:18 Defining Brand
07:53 The Controversy of Brand
12:18 Including Brand in Direct Response
26:21 Partnerships with Influencers
32:54 Bringing Brand, Influencer, and Profitability Together
35:48 Key Takeaways
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Frequently asked about this episode
What does this episode say about brand strategy?
Define brand as 'the revenue you have when you turn off all your marketing, new product launches, and discounts.' This is your resilient base of revenue, distinct from short-term paid performance.
What does this episode say about customer acquisition?
Shift new customer acquisition focus from solely ROAS and bottom-funnel performance to cultivating direct and organic traffic by changing perceptions of your brand. Prioritize growth in this 'resilient base of new customer revenue' over solely optimizing paid channels.
What does this episode say about exit strategy?
Recognize that over-reliance on performance marketing metrics like ROAS can mask underlying business unprofitability, as these metrics don't always correlate with true business health or profit growth.
What does this episode say about profitability?
Actively engage with customers to deliver on product promise and experience, as this builds a 'resilient base of repeat customers,' complementing new customer brand building.
What does this episode say about brand strategy?
Challenge the common perception of brand marketing as unmeasurable by focusing on quantifiable outcomes like direct site visits and organic searches, treating it with the same accountability as performance marketing.
