- DTC News by Workspace6
- Posts
- Issue 132: Wanna jack 💪 your subscription revenue?
Issue 132: Wanna jack 💪 your subscription revenue?
+ Every ad you should be running & HOW to make them
21315
Woot woot! 🚂 Folks this week is off to a banger of a start. Can you feel it? We can. The tables are turning. Or… at least… that’s what we’re naming and claiming. 🙌
| TWEET OF THE WEEK
I make viral ads for DTC brands you know and love
After 10 years and 1000s of ads made, I've cracked the code on what REALLY works.
Want to know which ads will boost your ROAS?
Here’s every type of ad creative your brand should be running and how to make them:
— Fraser Cottrell | Ad Creative For Meta & TikTok (@sourfraser)
5:31 PM • Jul 21, 2024
Knowing what to work on may be the most asked and difficult question for subscription brands.
From what to sell, how to sell it, how to keep people on, and all of the things that go into those pieces - it’s a lot to worry about.
In this week’s dose, I will unpack why focusing on the offer is the most impactful step of the subscription process. There will be a bit of math, but I’ll keep things simple.
Let’s dive in!
What Makes up Topline Revenue for Subscriptions
When deciding what to focus on for subscription growth, let’s first review what makes up topline revenue for subscriptions.
There is a simple formula to help you understand this.
Topline revenue is created by the number of subscribers x their average order value (AOV) x the number of times their order processes.
For example, if you have 100 subscribers with $50 AOV, and they last (on average) 5 months, you’d have this for revenue:
100 x $50 × 5 = $25,000 in revenue.
This is important to understand because all of our actions to improve subscriptions should be to influence (at least) one of those pieces.
Dive a Little Deeper
Think of all subscription revenue like a waterfall. Each month we acquire a number of new subscribers. Month after month, we retain less and less of them.
You can see this visualized here:
The right side of the graph shows the percentage of subscribers that make it from one month to the next.
Let’s assume that your website converts 100 new subscribers each month. To simplify the math, assume you convert 2% of all site visitors, and half of those pick the subscription option.
Based on this model, we make 200 sales each month, with half being subscriptions.
| YOUTUBE UNIVERSITY
How To Build A $1 Million Per Month Ecom Team
| TOGETHER WITH SEGMENTS
Your data is keeping secrets. Unlock them with Segments Analytics.
Your data is your most valuable asset, but without a designated data scientists on staff, can you ever really truly unlock the golden nuggets that lie within it?
Segments Analytics is the ultimate customer segmentation tool, built by data scientists to be a marketer's best friend. Trusted by over 1,000 brands like Sol de Janeiro, Ilia, True Botanicals, and Nutrimuscle, this Shopify app transforms raw data into actionable insights.
Segments uses sophisticated AI via SegmentsGPT to build customer segments and reports using natural language. Its focus is on customer retention by identifying MVPs and low-value customers across 12 lifecycle segments. Explore purchase patterns and time intervals to create personalized, well-timed campaigns that drive repeat spending.
Replace platform-specific segments with unified audiences across Klaviyo, Google, Meta, and more. Shopify Plus certified, Segments Analytics offers intelligence typically reserved for larger organizations with dedicated data science teams.
As a valued member of the Workspace6 community, access Segments Analytics at an exclusive 15% discount. Elevate your ecommerce strategy—start using Segments Analytics today and harness your data's full potential.
| QUICK SHOTS
@ginacostag_: The 15 most creative and iconic ads you'll ever see…
@iamshackelford: To my subscription brands out there - We have a product that we are not going to be able to ship anymore and have a batch of customers on subscription that are set to get this product. How would you play this to not cause a major problem?
Simon Robert: Static ads DO work at scale. How to swap retargeting with acquisition ads:
@hsivar20: Open-ended questions for DTC Twitter:
What are your thoughts on Shopify Capital?
@jspujji: Dollar Shave Club is INSANE:
| HERE FOR THE MEMES
Me trying to operate my ecommerce business the past 4 years.
— Eric Bandholz (@bandholz)
8:13 PM • Aug 11, 2024
| AND IN OTHER NEWS…
| GET LINKED
| RECOMMENDED SOFTWARE & SERVICES
BoxFort Commerce helps clothing & high-sku brands scale with efficient Shopify fulfillment. Unlike the Bobs & Monks of logistics, we ship hundreds of thousands of orders for 3 of our own clothing and jewelry brands, so it’s imperative that our processes are built around saving money & consistency. Learn more here.
Deep Ocean Partners solves your working capital needs and then some. Get access to 1.5x - 2.5x higher credit limits than traditional asset based lenders and generate 50%+ cash flow savings versus revenue-based fintechs. Sign up here to find out if you qualify.
| STAT ATTACK 👊
| YOU’RE HIRED
Brand
Email & Ecom Marketing Manager (Ash & Erie)
Front-End Engineer (Neurohacker Collective)
Got a job you want us to list? Let us know.
| THE OUTRO
Okay, so look, even if the tables weren’t turning - WHICH THEY ARE - it wouldn’t make any sense moping and doping about it, now would it? Noooo. So what do we do? 🍻 We look potential destruction in the face and laugh mightily.
YES! 💪 Onwards! 🚀
Workspace6
