S7 E10: This Simple Hack Produces a 78% Better ROAS

Limited Supply · with Nick · March 6, 2024 · 52 min

Summary

This episode reveals how Facebook Catalog Ads can significantly boost ROAS for DTC brands, drawing parallels to the nostalgic Skymall catalog experience. It dissects Klaviyo's market position post-IPO and offers strategies to overcome subscription barriers. Additionally, the episode provides cautionary insights from the Thrasio bankruptcy, offering a comprehensive look at optimizing digital marketing and retention for e-commerce.

Key takeaways

• Implement Facebook Catalog Ads with dynamic product ads to replicate product discovery and achieve up to 78% improved ROAS, focusing on personalized product showcases rather than generic ads.
• Analyze Klaviyo's post-IPO performance and market shifts to understand its evolving role in the DTC ecosystem and potential impacts on your marketing automation strategy.
• Identify and address "subscription stoppers" by streamlining onboarding, clarifying value propositions, and making the unsubscribe process easy to build trust and encourage future re-engagement.
• Explore Postscript CashBack as an alternative to traditional coupons to incentivize repeat purchases and increase customer lifetime value through store gift card options.
• Examine the implications of the Thrasio bankruptcy to understand the challenges and volatilities within the e-commerce aggregator model and apply lessons to your growth and investment strategies.

Themes

Topics covered

Episode description

Listen up kiddies, and let Nick and Moiz tell you the story of ages past.  Back in their day, before you had to worry about finding a MAX-9 brochure sitting in the plane seat in front of you, you used to look forward to busting open the germ-covered pages of the Skymall catalog on plane flights. Where else could you order a ton of crap you never knew you needed? But Skymall, and the catalog disappeared. Now, Facebook catalog ads are determined to fill the void of flipping pages upon pages of products. Nik and Moiz dive into the nitty gritty details of why your DTC can't afford not to harness the power of Facebook catalog ads before explaining how to implement them the right way. Is it a smart move for your DTC? And just how much can they boost your ROAS? Then, the guys discuss if Klaivyo is becoming obsolete. With diminishing stock prices since the company IPO’d, is it possible the service is finally ending its stronghold over the DTC community?   Plus, Nik shares the top subscription stoppers that hinder customers from signing up for subscription services and later, he and Moiz tackle the Thrasio bankruptcy.    Give customers more choice—and save your margins—with Postscript CashBack. This is the better alternative to coupons. Offer customers a CashBack option anywhere you use a coupon—popups, welcome series, or over SMS and email. When customers select a store gift card for their CashBack option, they return to purchase multiple times and spend more. Postscript is the DTC darling of SMS for a reason—they’re in the biz of making brands more money–more efficiently. Learn more at postscript.io/limited   00:01:14 - Effective Facebook Catalog Ads and Subscription Strategies 00:02:12 - Creating Effective Facebook Catalog Ads 00:16:32 - Klaviyo Doubles High-Paying Customers in 2023 00:27:24 - Overcoming Subscription Barriers in Marketing 00:32:29 - Why People Cancel Consumable Subscriptions 00:40:02 - Make Unsubscribing Easy for Customers 00:44:26 - E-commerce Aggregator

Frequently asked about this episode

What does this episode say about paid acquisition?

Implement Facebook Catalog Ads with dynamic product ads to replicate product discovery and achieve up to 78% improved ROAS, focusing on personalized product showcases rather than generic ads.

What does this episode say about dtc strategy?

Analyze Klaviyo's post-IPO performance and market shifts to understand its evolving role in the DTC ecosystem and potential impacts on your marketing automation strategy.

What does this episode say about customer retention?

Identify and address "subscription stoppers" by streamlining onboarding, clarifying value propositions, and making the unsubscribe process easy to build trust and encourage future re-engagement.

What does this episode say about subscriptions & ltv?

Explore Postscript CashBack as an alternative to traditional coupons to incentivize repeat purchases and increase customer lifetime value through store gift card options.

What does this episode say about paid acquisition?

Examine the implications of the Thrasio bankruptcy to understand the challenges and volatilities within the e-commerce aggregator model and apply lessons to your growth and investment strategies.

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