Episode Summary
In this mini episode of the Free to Grow CFO podcast, Jon Blair discusses the concept of LTV (Lifetime Value) in the context of DTC brands, emphasizing its importance in measuring customer value over time. He highlights common misconceptions about LTV, particularly the confusion between LTV and LTR (Lifetime Revenue), and stresses the need to measure LTV in margin dollars rather than revenue. Jon also explains the significance of time-bound LTV and its role in assessing profitability against customer acquisition costs (CAC).
Key Takeaways:
-LTV is the cumulative value that a customer represents to your brand over time.
-LTV should be measured in margin dollars, not total revenue.
-LTV must be time-bound, expressed in specific time frames.
Episode Links
Jon Blair - https://www.linkedin.com/in/jonathon-albert-blair/
Free to Grow CFO - https://freetogrowcfo.com/
Transcript
00:00 Understanding LTV: Definition and Importance
03:14 Measuring LTV: Common Mistakes and Correct Approaches
04:59 Using LTV for Business Decisions: Profitability Assessment
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Episode Summary
In this mini episode of the Free to Grow CFO podcast, Jon Blair discusses the concept of LTV (Lifetime Value) in the context of DTC brands, emphasizing its importance in measuring customer value over time. He highlights common misconceptions about LTV, particularly the confusion between LTV and LTR (Lifetime Revenue), and stresses the need to measure LTV in margin dollars rather than revenue. Jon also explains the significance of time-bound LTV and its role in assessing profitability against customer acquisition costs (CAC).
Key Takeaways:
-LTV is the cumulative value that a customer represents to your brand over time.
-LTV should be measured in margin dollars, not total revenue.
-LTV must be time-bound, expressed in specific time frames.
Episode Links
Jon Blair - https://www.linkedin.com/in/jonathon-albert-blair/
Free to Grow CFO - https://freetogrowcfo.com/
Transcript
00:00 Understanding LTV: Definition and Importance
03:14 Measuring LTV: Common Mistakes and Correct Approaches
04:59 Using LTV for Business Decisions: Profitability Assessment
Episode Summary
In this episode of the Free to Grow CFO podcast, Jon Blair interviews Sean Busch, founder of DadMode and former founder of Puracy. They discuss Sean's entrepreneurial journey, the challenges and successes of scaling bootstrapped brands, and the importance of customer engagement and financial reporting. Sean shares insights on driving repeat purchases, building strong relationships with customers, and the operational challenges faced when scaling a brand. The conversation also touches on the birth of DadMode, a brand focused on household cleaning products for dads, and the value of creating relatable content for their audience.
Key Takeaways
-Creating uncomfortably close relationships with customers can turn buyers into loyal brand evangelists.
-Valuable customer insights often come from doing the unscalable.
-Scaling a business without outside capital requires strategic supplier partnerships.
Episode Links
Jon Blair - https://www.linkedin.com/in/jonathon-albert-blair/
Sean Busch- https://www.linkedin.com/in/seantbusch/
Free to Grow CFO - https://freetogrowcfo.com/
DadMode - https://godadmode.com/
Transcript
~~~
00:00 Introduction
01:16 Sean's Early Entrepreneurial Influences
04:40 Scaling PureCity: Key Factors for Success
10:08 Customer-Centric Strategies for Repeat Purchases
13:31 Leveraging Amazon for Brand Growth
17:41 Building Uncomfortably Close Customer Relationships
23:18 The Soul of Business and Its Impact
25:04 Optimizing Product Packaging and Manufacturing Costs
29:19 The Birth of Dad Mode: A New Brand for Dads
33:57 Creating Engaging Content for Dads
37:14 The Importance of Financial Discipline in Scaling
41:04 Personal Insights and Future Directions
The Free to Grow CFO Podcast
Episode Summary
In this mini episode of the Free to Grow CFO podcast, Jon Blair discusses the concept of LTV (Lifetime Value) in the context of DTC brands, emphasizing its importance in measuring customer value over time. He highlights common misconceptions about LTV, particularly the confusion between LTV and LTR (Lifetime Revenue), and stresses the need to measure LTV in margin dollars rather than revenue. Jon also explains the significance of time-bound LTV and its role in assessing profitability against customer acquisition costs (CAC).
Key Takeaways:
-LTV is the cumulative value that a customer represents to your brand over time.
-LTV should be measured in margin dollars, not total revenue.
-LTV must be time-bound, expressed in specific time frames.
Episode Links
Jon Blair - https://www.linkedin.com/in/jonathon-albert-blair/
Free to Grow CFO - https://freetogrowcfo.com/
Transcript
00:00 Understanding LTV: Definition and Importance
03:14 Measuring LTV: Common Mistakes and Correct Approaches
04:59 Using LTV for Business Decisions: Profitability Assessment
