The COVID-19 boom led to unrealistic growth expectations, causing many ecommerce brands to "squeeze the sponge" and focus solely on extracting revenue from existing customers. This episode with Luke Austin reveals why this strategy is now flatlining returning customer revenue and jeopardizing efficiency. Learn actionable tactics to navigate this impending dip and build sustainable, long-term growth by re-evaluating acquisition and retention efforts.
The 2020-21 COVID boom set unrealistic expectations for year-over-year growth. So, when brands saw 2022 YoY revenue figures start to drop, they started “squeezing the sponge” — wringing every last bit of revenue out of their existing customer base without acquiring new customers. Now, that’s coming around to bite most brands: returning customer revenue growth is almost nil, and efficiency is about to take a nosedive. On this episode, Richard talks with CTC Growth Strategy Manager Luke Austin about what the future holds, and the tactics he’s using to manage the upcoming dip for his clients. Show Notes: Early bird pricing is still available on the Ecommerce Diagnostic Toolkit for podcast listeners only — just use code POD197 at https://bit.ly/3VstFmI to get the lower price. Check out Luke Austin’s tweet on the state of returning customer revenue: https://twitter.com/itslukeaustin/status/1654622951206166529?s=20 The Ecommerce Playbook mailbag is open — email us at podcast@commonthreadco.com to ask us any questions you might have about the world of ecomm.