The DTC Podcast
The DTC Podcast

Black Friday Discount Strategy for DTC Brands Hooked on 30% Off | AKNF

4h ago42:027,416 words

The Podafi briefing · AI analysis

DTC brands bypass algorithmic traps and discount addiction to protect margins

5 min brief · 4 takeaways · Based on this episode’s transcript

The 30-second brief

TL;DR
  • 01Treat discounting as a targeted media budget rather than a flat margin reduction across the entire catalog.
  • 02Quarantine coupon-addicted customer cohorts in specific email segments to protect full-price conversion rates for new audiences.
  • 03Shift retargeting spend to SMS when email saturation drives down click-through rates and inflates attributed revenue.

The big picture

DTC brands often rely on flat discounts and algorithmic optimization, which erode margins and narrow messaging. Operators are segmenting coupon-addicted cohorts, treating discounts as targeted media budgets, and shifting retargeting to SMS to protect full-price conversion. These shifts require accepting short-term efficiency tradeoffs to build sustainable growth.

Useful for: DTC founders and media buyers managing promotions, email saturation, and paid social scaling.

Synthesis of podcast conversations. Speaker claims are not independently verified.

01Discount Strategy

Treat Discounts As A Media Budget

Eric suggests viewing discounting as a media budget built into the P&L. Instead of a site-wide 30 percent off, apply the discount to a specific new product as a limited release to acquire new emails.

Why it matters. This shifts the focus from subsidizing existing buyers to using the margin hit as a targeted acquisition tool with a specific strategic goal.

Your next move · Podafi’s suggestion

Identify one high-margin new product. Run a limited discount exclusively on that item to capture new email signups without discounting your core catalog.

The catch. Do not apply this to hero products if the goal is to protect brand prestige and full-price conversion rates.

Transcript evidence

Evidence summary · paraphrased

Eric explained that brands should think of discounting as a media budget. He recommended applying a flat discount to a best-selling new product as a one-day limited release to acquire new customer emails.

02Retention

Quarantine Coupon-Addicted Customer Cohorts

Jordan advises separating coupon-addicted cohorts from new audiences. Show the addicted group their expected discounted price via controlled email channels, while keeping new arrivals focused on full-price value.

Why it matters. This prevents discount expectations from infecting new customers, protecting long-term average order value and full-price conversion rates as the addicted segment naturally phases out.

Your next move · Podafi’s suggestion

Tag customers who purchased exclusively on discount in the last 12 months. Route them to a specific email segment that receives promotional offers.

The catch. Leaking promo codes to the general list will immediately undermine the strategy and train new buyers to wait for promotions.

Transcript evidence

Evidence summary · paraphrased

Jordan noted that brands need to separate coupon-addicted cohorts and admit those customers think products are worth a different price. He suggested showing them that price through controlled email only.

03SMS Strategy

SMS Offers Cheaper Retargeting Than Paid Ads

One brand saw a 0.09 percent email click-through rate but a 2.5 percent SMS click-through rate. SMS retargeting cost 25 cents per click versus 1 dollar and 30 cents for Meta and Google retargeting.

Why it matters. Shifting retargeting spend from saturated paid ads to underutilized SMS lowers customer acquisition costs and improves overall channel efficiency when email engagement drops.

Your next move · Podafi’s suggestion

Calculate your current paid retargeting cost per click and compare it to your SMS cost per click to identify channel rebalancing opportunities.

The catch. SMS costs per message are higher than email. Increasing SMS volume requires strict margin analysis to ensure overall profitability.

Transcript evidence

From the transcript

“your email is completely saturated. It could not be more saturated, and your SMS is not. And so, uh, the way that I've, uh, framed that was, let's look at what you're paying. Let's, let's treat SMS as a retargeting channel.”
Read the source transcript ↗

Evidence summary · paraphrased

A saturated email program yielded a 0.09 percent click-through rate while SMS hit 2.5 percent. SMS retargeting cost 25 cents per click compared to 1 dollar and 30 cents on Meta and Google.

04Brand Positioning

Algorithmic Optimization Narrows Brand Messaging

A testosterone supplement brand optimized its site and emails solely for libido enhancement because algorithms favored it. Speakers noted this bottoms-up decision making limits scale and requires rebuilding the site to highlight broader health benefits.

Why it matters. Letting algorithms dictate messaging restricts total addressable market and commoditizes the brand, forcing a costly but necessary strategic reset to capture broader demand.

Your next move · Podafi’s suggestion

Audit your top-converting landing pages and emails to ensure they reflect your full value proposition, not just the easiest algorithmic win.

The catch. Broadening messaging will initially lower conversion efficiency. Prepare for a temporary dip in return on ad spend during the transition.

Transcript evidence

From the transcript

“if you just optimize towards, you know, if you only optimize towards the, what's going to work the easiest, you kind of end up, you know, the, the inmates are running the asylum.”
Read the source transcript ↗

Evidence summary · paraphrased

A testosterone supplement brand optimized entirely for libido enhancement based on algorithmic feedback, requiring a full site and email rebuild to capture the broader men's health market.

From listening to doing

Take one idea into the week

Suggested experiments, not proven results. Choose what fits your brand.

SMS Versus Paid Retargeting Cost Test

  1. 01Calculate current cost per click for Meta and Google retargeting campaigns.
  2. 02Calculate current cost per click for existing SMS retargeting flows.
  3. 03Reallocate a portion of paid retargeting budget to SMS if the cost per click is lower.

Measure: Compare blended cost per click and overall return on ad spend between the control and SMS-heavy test groups.

Guardrail: Monitor SMS opt-out rates daily. Pause the test if customer complaints spike or if SMS margins drop below baseline profitability.

Context & limitations
  • The geographic saturation and SMS cost examples are based on specific brand audits and may not apply to different market footprints or vendor pricing.
  • Quarantining coupon cohorts relies on historical purchase behavior and may misclassify customers who occasionally buy at full price.
  • Broadening brand messaging or reducing email volume will likely cause short-term drops in reported platform efficiency and attributed revenue.

Listen to the conversation

0:000:00
Original episode description

How do you run Black Friday when your DTC brand is already hooked on discounts? Split your customers into new and repeat, keep the coupon-trained cohorts on their deal, and use the Black Friday offer to bring in new customers who have never seen your 30% off.On the second DTC Rundown, Eric Dyck is joined by Jordan Gordon, who leads email and retention at Pilothouse, and Rafael Gi, who works on par...

Transcript

EN

Don't treat your discount, plan, and a flat way.

One way to unlock creativity from a discounting is to think of discounting as media budget. If you're not using Black Friday for new customers, then you're really just taking your existing audience and discounting your stuff.

And maybe that's important if you're trying to reach like production minimums, so you can scale your production. Otherwise, you're just discounting the share of wealth that you're ever going to get out of that customer. One of the chances that the audience that you're trying to expand to

has the best cost ratios. No chance the audience you've got right now is going to have your best cost ratios.

“You must be looking for ways to educate yourself”

on how to bypass the operating. This episode is brought to you by TripleWail, the AI operating system for e-commerce. Just a quick gut check for brand owners and media buyers. Have you started your Black Friday Cyber Monday planning yet?

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Cyber Monday today. Raph pulled his hammy and we are live. It's all killer. No filler. This is the rundown episode two of the rundown that we're doing across the D to C podcast and

the Twitter podcast. I've got Jordan and Raph back in our respective studios. Welcome to the rundown guys. What's what's new besides your hammy, Raph? Thank you for having us and for putting me on blast.

What did you, what did you do to your hammy? Was it working out or something embarrassing? No, just plain soccer, but now that I'm almost 40, I underestimate how much scratching I need to do. So I was running a little late, decided to jump in there.

I got a couple of nice prints in and next thing I know, my left leg kind of feels nice though. Almost 40. It isn't that nice, Jordan, almost 40's that cute as a almost 40 year old man.

“I'm learning that I have to take out my body, you know?”

That's the, I feel like a new skill. I'm pushing 50 and we got a couple new fairly beefy white belts that just came in. And so I'm like right now, kind of just like, oh my god, I got to figure out how to move these white belts where they're supposed to be.

And they're like, oh, so, you know, I'm always facing that nice.

So I roll on the, I've been thinking about it, I've been thinking about getting into the, into the BJG. I need a few things. I've got Babmonton starting up on the big rackets port guy. So I've got the opposite of BJG, which is Babmonton.

I believe technically. Um, I think it's Epistemical, anyways, let's just move along. Let's just get, let's get this going. We've got three awesome topics. Two minutes.

And I'm a mystery topic. Okay, so I've actually just got, we were actually doing it. We're doing it live today. We're actually going to start the topic. And I'm going to actually press start.

We're going to actually use the timer. And here we go. We are off. So let's frame up this 30 off topic. A brand has run a 30% off site wife five times this year.

Full price conversion has slipped. And the email list mostly opens, uh, opens promosens. Black Friday is the one week where everyone expects a discount.

“What do you do when you become addicted to this 30% discount on Black Friday?”

Um, that was so in the me out first of all, they're, they've decided that they're

not going to go deeper than 30%. So it's just their regular deal. Is that right? They haven't, they haven't, this is, that's part of it. Could they, could they go deeper with the idea?

Like you were talking in the pre show, they're Jordan about going deeper, but really instilling the value that sure you're getting this discount now. But you're, you're going to buy throughout the whole year and you'll make it up in the whole year. What, what do you, what do you do?

Yeah, I want to, first of all, like, obviously at least they should do a 35, you know, it's like, don't go with 30 and you've got a lot of, you can play around a lot. You can say, like, up to and have some product that's, you know, a bit of a doorbuster,

Right, but not your most important product, but you know, and the other ones ...

get to 35, like find a way to at least make it a little bit more special, nominally more

“special, and I think the, I'd say, this way, but they got to think about, again, you play”

for the shot, you play for the leave, not the shot, what are they going to be doing afterwards? They should be thinking about getting off of coupon addiction, which is a long term process. And so we should be taking the people, the, the cohorts that are coupon addicted, separating those cohorts and just admitting to ourselves, they think our products were a different price.

So we have to just show them that price, you show them that price through email only. So it's controlled.

So the new people coming in don't, the, the, the, the, aren't exposed to those always on discounts.

They adjust to the, what, they psychologically think your new prices, those coupon groups, those cohorts, you just ride them for revenue. You just keep giving them 30% off forever until they wander off. And then the new people who are coming in, you very carefully control those segments, control the, the discounts that they see and bring them into this new normal.

That's like, you know, that's like q5 and on, like q4, I mean, people are expecting a discount. So like I say, try to squeeze out an extra 5% and, you know, maybe think about rather than thinking about how much they can discount, think about how much they can increase their reach. So, you know, I'd love to know, you know, if this, if this brand, you know, has, I'd love to, you know, speak with them about their audience size, their inboxing and if they

can rather than expose more of a discount, expose more, expose more of an audience. Yeah.

“I think, along a similar vein, I think the very first thing I would say without knowing any”

of those details that you're going to be mentioned is, don't treat your discount approach or plan in a flat way, meaning, I think one way to unlock creativity from a discounting is to think of discounting as media budget.

It's ultimately for, you know, running a P&L, you know, like you're going to build the

cost of discounting into that P&L, just like you build the cost of media, if that makes sense, right? And to think most brands, like, you know, that ask that kind of question are in the place where they're just thinking about the discount rate versus what they're trying to achieve with the discount, right?

Just like being, you know, and what's it called, unmeta and having, you know, sort of having media plan, that's just meta only, right? It's not going to give you the, it's not going to build the right system for you. So the joke was point.

“I think there's a couple of components you can, you can do is if you're not going to move,”

for example, the flat 30, maybe apply the flat 30 to your best selling new product, right? So the product that everybody knows you for, you promote that prior to black Friday. And, you know, drop that discount on a one day limited release, at least it starts helping you acquire emails of people who are new customers that are interested in you, for example. You know, another idea on how to, you know, again, they can more creative approach if you

think of your discount as media would be, what's it called? There's often times when you get into that situation, more likely that not the issues that you have issues with your customer acquisition, so you're trying to maximize revenue with your existing customer base. If I discuss you, that is downtrending because new customers are coming in, but your existing

customers love, you know, discount that, you know, that the growth isn't there, but the volume isn't there, you know, just double down, you'll probably have extra stock inventory and make that a existing customer special, you know, whether the loyalty programmer or something like that. But those are just examples of thinking about your discount rate as a media budget and they'll program around it with a specific focus and goal.

What about the gifts with purchase and bundles? Are those, are those ways to get off the discounting addiction or does that just mask the addiction with more goods? For me, it just depends on how you're actually going to do it, you know, so let's say you're in a parallel brand, you know, you have a choice.

Do you want to do a t-shirt and jean bundle or do you want to do a 3T pack? You know, I think it's, I think it just depends on whether you're trying to push top line or on your bottom line as part of that plan, and I think it also depends with whether you're trying to acquire new customer existing customers. So yeah, importantly, it's like the people who are getting 30% off forever.

But first of all, let's not dilute ourselves into thinking we can, you know, rearrange the

Deck shares on the Titanic.

Like if people want to deal, so if you're not, if you're going to find it, if you're trying

to find a way to not give them a deal, black Friday is probably not going to be great, right? They're going to, they're going to, they're going to min match it all in their heads and decide if the deal's good enough. But if you're not using black Friday for new customers, then you're really just taking

your existing audience and, and discounting your stuff. And maybe that's important if you're trying to reach like production minimums so you can, you know, scale your, your, your production otherwise, yeah, you're just discounting the, the, the share of what that you're ever going to get out of that customer. So I would, it's like, what we're talking about the, the 30% that we've been giving off

this whole time, we're talking about existing audience, right? So shift the thinking to how we're going to bring in new audience with this discount.

And, you know, what new audience, they're not going to have seen that 30%, right?

So, so splitting this whole analysis up by, by new, by essentially by new repeat.

“You should always be splitting your analysis up by new repeats as the retention guy.”

Right? Yeah, I'm going to kind of build, kind of build on that juggle. I think one, you know, in the situation that you teed up Eric, like it sounds like they're hitting a 30% discount pretty pretty often. So in that scenario, one thing that's effective is just having like last chance or some sort

of clear section, right? And then saving your, let's say, your best product, right? So you're best selling pad, but in a off-color, for example, or, you know, your best only pad that you don't put on sale, right? Even if you don't have the sexy percentage off at 50 or 60, that's another way for you to play the game that Jordan's mentioning, you know, track a new person or what an expected

offer without touching the percentage off for sure. And then maintaining some sort of last chance clearance, call on so you can recoup some cash to get through bed and then to where. Yeah. Love that.

We got a buck 30 left. Any final words on a black Friday approach to a brand that has become too dependent on discounts. What's the January? What's the Q5 play?

Yeah, I want to just steal my black Friday topic, which doesn't really fit into this,

“but I wanted to talk about how, like, you should think about black Friday, play for the”

leave, not the shot. And like, so when someone signs up for your early, your early access, of course, if they sign up for your early access on October 4th, you're given the black Friday offer. You don't make them wait for the early access. You make, you think about how hard you thought to get them on your site, just give them

the deal. And then the subsequent automation, the flow that you send, that triggers off of that, it's like, sure, tell them the black Friday offer, but don't have the email about the black Friday offer. Have the email about email NSMS about how great it would be for them to be your customer

all your long. And all the reasons that someone should be shopping from you all your long, it'll be kind of a funny tongue and cheek flow, too. Like, oh, we know you're going to buy a black Friday, you sign up for the thing, right? But we want you all year round.

And just thinking about from the very minute, they start working in your black Friday, from that very moment, talking about how to establish them as a customer all your long,

“is maybe the thing you should think about for black Friday.”

Joke, Joke, with 50 seconds left, I'm going to give my favorite tactic, create a UV threshold and give them a gift card that they have to use in Q5, so then you get the dollars back. Perfect. And next quarter.

Boom. Look at that.

We just nailed our first time to topic to the second, 30 off, we're going right next

into market maturity, starting now, RAF, kick us off with what you're thinking for market maturity. I feel like I'm going to get a name for sending overly convoluted topics, but this is really simple, is oftentimes when we do audits and work with clients, every single performance agency, including by the way, says not to include any exclusions, if that makes sense.

Let the algorithm find the best regions. I think that works most of the time, but it becomes important to start including inclusions, once you start hitting that figure stage, because five design, what is men are going to do is going to find your easiest customer, and that means that when you're hitting that figure stage, you're going to have some markets where you have really, really strong penetration

in it. So a couple weeks back, we did a big pitch and audit that we wanted to close on the back of this idea, and then I'm going to apply to almost any business, that the big insight

We found is that we found so much wastage in the media spin, because Meta was...

on, if the, what's it got 8% on of their budget in a set of two regions that are counted

for the, 8% of the total addressable market. So what that means is those two markets are quite small, actually, it's close to where

“they were founded, but in a counter for 40% of the revenue, for a nine figure brand, right?”

So it's a way over in the existing in the market, right? So what we saw is that they were over delivering by 20% to 30% in those markets, and makes sense, because it's a market that have the best efficiency, and by volume still have the most new customers, but because they're kind of hitting that ceiling of maximizing that market, their velocity is slowing down, right?

So I'm just going to use that number, so let's say last year, they got a thousand customers

a month from one market, this year they're getting 700, it's still above all their other markets, and more efficient, but it's reduced the volume is reducing, so they can't hit their targets, you know, they're going to come, you know, maybe 5% or flat, you over here, because with their turn, you know, there's not enough new customer velocity to make up that difference, right?

So as you think about driving stale to your business, you really have to set goals by market maturity, and what we mean by that is, you know, what markets are mature and how do you define that? Because in those markets, your efficiency target should be higher, instead of, you know, 4 to 5 for us, maybe you're looking at a 7 to 8 for us, and then at the, you know, opposite

“end, looking at markets you want to enter in, right?”

So maybe in those markets, because you don't have a foothold, word, mouth, bread, and trust, you want to run out of break even, or a slight loss until you build it up, right? And then you'll have another set of markets that are in the middle, that are emerging, where what's it called, you know, you want to cut the difference, right? You know, running at a 1/2, you know, running at an 8, you're running, I don't know, like at a

3 or 2 1/2, you know, to blend out, and then do the financial modeling to figure out, what is the distribution you want in your budget between those 3 markets? I'm also messaging, and then messaging has to be different, right? Because if you're treating a flat, then your message is just going to optimize towards a market that already knows you. So you're not explaining yourself, right? So self-fulfilling prophecy.

And in this case, is the market mature because the client has been overspending, or has been

“saturating this specific market, educating them? I think of my friend Rob, who runs out”

way, who just did so much work to grow the brand out way in Canada, did so many events, did so many, and he built this whole, like, he'd matured the market in Canada for his brand. I feel like with all his effort. And then going into the US has been a very different procedure, even though the ads are the same, and the market is very similar, he had kind of matured the market with awareness in Canada by kind of saturating a lot. Here's like, talking to me about how

someone the market matures. Yeah, 100%. I think there's a couple ways to look at it. I think the most business that I can make way to say would be like penetration, you know? So like of your addressable market, what percentage of the market do you have, right? And every single business would be slightly different, right? So that's the year that you tell your market, you know, if you're kind of capping out within a market, you're probably looking at 30, 40,

50, 60% of market chain, right? Because there's not that many utility companies. So every utility company has a big slice of the pie. For fashion brand, it might be five, 10% you know, under five percent or seven percent per percent per percent of a market, because there's so many different fashion brands, right? So for that category fashion, you know, you're starting to say that pie is going to be smaller, right? So your ceiling is going to be different. So it's depending

to each industry, but really the way you're tracking is how many of the total available customers do you have? And do you have the resources to become the leader or capture more upside? If not, it's better for you to then focus on other markets, you know? So like, let's say as coming

in to Atleisure, you're never going to be, you know, within a year, you never come kind of

compete with Alo or Lulemon in market share, right? But you know, as an innovator, you might be able to carve out a chunk of percentage, right? Once you hit that ceiling, look at another market to expand into. Or, if you feel like you have the product and the momentum and the brand, maybe you try to compete, but that's also an excellent idea, because those people

Have deeper pockets on your right.

you know, I know this is slightly a topic, but the missing insight there is that sounds like

your buddy Rob invested a lot of a lot in brand marketing, you know? And you could see the proof point where you built the man through these events. There's no direct payback off the back of that, but he's probably seeing efficiency at better efficiency in Canada than he is in the US. Because he asked them with that brand awareness, right? So for me, the takeaway from that comment would be, yeah, even if you don't see it exactly in your platform or reporting,

I understand that there is a direct relationship where your brand building efforts do support your in platform efficiencies. I'll try to be clear just before I let you chime in, Jordan, I'll just say if you're listening Rob, I know you've cracked the US since. I know you get your run rate. So I don't want to think it's I'm like, outweighs just a Canadian phenomenon. So what do you think about it?

Well, you know that the ground is level when the email guy is drilling on both sides of his mouth. I'll try to simplify that in a way that some of the audience members might take away from that. The deeper truth there is like, what are the chances that you have a growth plan?

Like you've always got a growth plan and expansion plan. What are the chances that the

audience that you're trying to expand to has the best cost ratios? No chance. The audience you've

“got right now is going to have your best cost ratios. So you must be looking for ways”

tactically to educate yourself on how to bypass the algorithm. There was a great little Ben Affleck click. I can't remember a single Ben Affleck performance I've been happy with. But he talked about how AI just goes for the absolute medium and it does. It just goes for the absolute medium. So if you just leave everything to the AI, you're going to get the most median results you possibly can. So spend your time trying to figure out how to tactically

bypass the algorithm. Otherwise, you're never going to get the right customer because the right

customer is not a customer that matches that number. The right customers, the customer of the matches your product and your own strategic plans, which are not something that's met a nose anything about. Yeah. Amazing. You know guys, 200 both sides of his mouth. Get it to spare on this one. This episode is brought to you by Focal, the AI asset management platform for creative teams. Everyone working in D to C uses an LLM now, but almost everyone uses it in their own silo.

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“Little shop of audit hores. George, I think this is a lot of the world's best email and”

retention podcast is talking about some of the horrific things that you've seen on audits regal us with some tales of audit hores. Yeah, so there's this thing in the audit process. We're like raffle often jump in and be like kind of caution the the brand that you know, I'm very open with my assessment of people's accounts. And we're just talking about some stuff that I saw, right?

You know, I look at you know, clear your accounts every day.

700 live flow messages that we're talking to. How do you fix that? How do you actually

“fix 700 live flow messages and find the ones that are good and the ones that are bad?”

Right? And that same brand is sometimes doing 4 campaigns a day. It's, yeah, you know, it's just like it's an audit hore because we're like, oh, well, you know, if the brand closes, which hopefully it does, we have to fix that. That becomes our responsibility to fix. It's a bit of an audit hore. On the other side, I saw, looked at a brand that had a 30-day open attribution. It's like a 30-day impression attribution. And so then, you know, all of their numbers,

you know, are saying an Apple privacy opens, uh, count, even someone who didn't open their email. The account that doesn't open. In which case, essentially everything, even if it's like going through the ads funnel that has nothing to do with email is getting attributed to email.

“So yeah, saw some of those things, which were, which were horrors, I think the horrors a lot of”

time are people have taken the email program and turned it up to maximum because the pro, the email platform, all the platforms are built to show you that. If you do everything at maximum, you're doing great. Right? And so I guess, you know, deep audit hore, a summary there is, is ending up in a situation where where we need to slow a platform down without attribution, taking a dive. And I'll just, I'll just mention there how, how I see us doing that.

Is, uh, going in and making a, uh, control group where the control group doesn't get, any of the emails, they only get email one for welcome. And when you've got that control group, then you can analyze, um, the actual incremental revenue that email drives rather than the platform

“revenue because the platform revenue is just how many, how many deals did we stuff ourselves into?”

How many deals did we get clicks on? So, uh, yeah, there's, uh, audit, is that, is that the same audit

where you were saying that there, uh, there was something out, like 250 billion emails per,

you know, there's some portability, yeah, quarter billion. That actually wasn't the quarter billion brand, but there, there is a brand. That's, that's, uh, that we audited that sends a quarter billion emails a year. It's, and you know what, that's not even a crazy number, like lots of brands are doing, are doing numbers like that. And then, and then you look, you go in, and this is these, the horrors, and then you go in, and you look at, they got these little flows set up, and you're like, okay, look,

you're doing a quarter billion emails a year. What is this flow even doing? Like, what is the uplift from revenue? The emails that go out after 28 days, yeah. And Joe, it's interesting for me sitting as a passenger in those conversations, uh, so you get into some of the technical details. They feel like a lot of, um, a lot of brands think of their audiences, uh, uh, sorry,

as emails, as transactions, you know, like three impressions. First, it's like, if you're spamming

people and nobody is opening those emails, that's not creating a good custom experience, right? You know, you wouldn't, you wouldn't do that, you know, to your customer person, right? Just like, talk at them, non-stop, you know, even though they're not reacting back. So it's interesting how when it comes to email, it's, um, the mindset shifts away from, hey, this is like, these are my customers, you know, and these are, because our value relationships are like, I'm just going to send as many

messages as I can to them. And, um, so, in some of these, uh, what I'm talking about two or three different opportunities here that we discussed, some of these audit horrors, interestingly, on one of them, that the, the Gmail clicks through right was like 0.09%, a crazy low clicks through rate. Whereas the SMS click through it was like 2.5%. And we were having this discussion like, oh, we want to, you know, scale back our budget with this SMS is costing us a whole lot of money,

and it's like, well, wait a second, your email is completely saturated. It could not be more saturated, and your SMS is not. And so, uh, the way that I've, uh, framed that was, let's look at what you're paying. Let's, let's treat SMS as a retargeting channel. Let's look at what you're paying, um, to retarget through meta and, um, uh, and Google, and their retargeting was like, buck 30 a click, something like that. And then we looked at a SMS and it was like 25 cents a click.

Okay, well, once you do that reframe, then you know, you always need a metric, you need a metric

To reframe it.

way less emails, um, and kind of just, you know, rebalance the whole program. I do have one other,

I wouldn't, I don't want to call this a horror, but it's just an interesting one that we were talking through, uh, a brand that, um, half an eye worked on. They, they, it's, it's, it's a, it's a testosterone supplement, right? Um, and we, we've discussed this before, if you just optimize towards, you know, if you only optimize towards the, what's going to work the easiest, you kind of end up, you know, the, the inmates are running the asylum. And so they ended up at the website that was really talking

about, um, libido enhancement, right? And the supplement can be so much more than libido enhancement, right? The testosterone is very important, uh, product for, for men. Uh, and so just kind of being in a situation where you're like, okay, we have to find a way to rebuild their whole site, the all their emails to, to, to no longer be about, you know, libido enhancement and to be about all the, uh, the other great things that testosterone can do for a man. Yeah. But it's like a race to the bottom.

It's a race to, to the, to the, to the, to the most potent argument you could say. Yeah, yeah, because that's, yeah, and that's, and that's, and that's a tuition, it's, uh, what I would call bottoms up decision making, you know, uh, where you're letting the algorithm dictate what works. But at some point, that's going to stop working, you know, and, and to Jogo's point, there's the bigger business and, um, people looking to improve their testosterone levels,

then, you know, libido enhancement. And they actually have like, uh, a pretty interesting story. As we got to know the operator more, I was like, um, you know, they have a really interesting operation here. Uh, and yeah, they just weren't highlighting that, it gets the algorithm told them that the money was then that's one specific thing. So we, we had a really good, good conversation there. Can I have that? Can I really have that? How do we have that? Yeah, how do we have that?

“Well, I mean, I think that's, um, that's what we talk about at full system update, right?”

Because ultimately, they're going to have to update their creative, like, uh, what are they

hooking people with? And then that's sort of website, and also the email flows, right? Um, just some of the reasons why they're going to be coming in is for general energies. Other reasons might be because of libido. So it's not like, um, one channel fixed, right? We're going to have to look at the full system at that, at that point. And you'll lose efficiency with that with, with that rehab process, but you should be able to gain scale.

Deal is what you're thinking, right? Yes. Yeah, exactly. Like another example would be, um, and this is maybe horror stories a little bit too much, but one, one, and, uh, you know, this is your segment joke, but one thing that I have noticed is also a lot of operators that we chat to are reluctant to change their store, even if the numbers tell them to. So I'll give you one example. We're

working for it with a subscription business. And, um, Joel shared with us that basically, you know,

“only 3% of the people that go through the quiz actually check out because it's the only way”

that you can get the pricing, all right? And that's giving you a ton of false positives because on the medicine. That's a big issue. That tells you that, hey, people interested in your pricing, you should bring it up front, you know, what's the point of adding a quiz because, you know, on these small proportion that people are converting. And they're like, we're not doing this as to complicate. It is the one thing numerically that is crushing your business, you know, but

whatever reason is it was, it's, it's nice when just the one, all we got to do is change the wording. When we got to change the entire UI UX, how the actual site works, that is a horror because it's so much nice when it's going to change some images and some copy, right? Yeah. All right. Well, today's mystery topic. I just was wondering, we've talked about like audit horrors. I wanted to ask you guys, what the best offer you've ever read is on any client. The best offer was it just a

“volume discount. Was it a gift with purchase? I think about like the sports illustrated football”

phone and how people like we're subscribing to sports illustrated, even if they didn't like sports, it's just because they wanted a football phone. I want to just start with a funny offer that was the message. Okay. It's one offer. It's just kind of funny. It's just a big, it's flub. One time long ago at a previous brand, I ran, it was a suit and two shirts, but I accidentally, typo the subject line and the subject line was a suit and two shirts. And the investors got the

Two shirts.

an honest mistake. Like, what was your one-on-one joke? Joe, go out the one-on-one with down here.

I mean, yeah, the one-on-one was brief, but I'll just say to solve these kinds of issues now, let rotate everybody. If you're writing your own subject lines, just before you send, which is very common in the email world, pop it into chat, GPT and say QA, my subject line. Just get the machine to QA your subject line before you send, because we're all doing that stuff in the trenches. Yeah, if you're happy you got a good offer. Oh, I mean, there's like, you know, like,

great stuff, I would say. Like, pre, what's it called? My client side days, and when I worked at creative agencies, that's one of the coolest promos that we ran, where I worked on Budweiser. Also, we came up with the Budweiser Red Light as an improvement idea. The whole strategy was super simple. That's all in the goal. This is kind of relates back to sale and I see which is one of the things already as we chatted about, so the most inconvenient at the time was only kicking pride,

so that moment of celebration. So, by by zero, obviously you can't hold that, so we're like, let's own the goal. So, anytime somebody scores, you know, the red light goes off, when the red light goes off, you think of Budweiser and you drink it. And then yeah, then we work with the DGC Canvas and send it became a, you know, sort of profitable product to be the purchase and we use that to find some of our innovations. So, I was pretty, pretty fun.

And then, and a prior or something with, yeah, when I know some Bush Budweiser, we worked on, what's it called, this idea, lighting it up, trying to make light beers cool. So, we leveraged a lot of the splasherships because at the time Budweiser wasn't in the top five, by volume. So, we kind of used the corporate sponsorships to get people, like, once in a lifetime experience.

So, I don't know if you guys are UFC fighters, but basically it was a simple social contest,

like it is somewhere, you know, people got this admit, you just see you've done, you know, living it up. And then, if you got selected, yeah, a chance to win once in a lifetime experience.

“The very first one we did, it was, I think, UFC in 166.”

Mighty Mouse Johnson versus somebody, he forget. But, basically, we tried to tell me, again, I probably shouldn't say his last name, but, told me into a chap, you know. So, he got his own fighter badge. He got to do a karaoke with a Chuppudel, had a training session with GSP, which was like the first live training session ever. So, we kind of saved that as a viral moment. Yeah, what's a great kick-off beer bottle of

said? Yeah. So, and then that became like a program where people would submit that, did you see if they were living it up? And then they would get a chance to do some crazy things, you know. We dropped the beats a lot of registered, registered, yeah, the beats a lot of registered on the ricklers, you know, that digital things, you know, so I've crazy stuff like that.

Playing with waggies for a game. You probably should have stayed on the Bud Light account a few more years than they did. A bit of a small misstep. The iceman chuckle Adele,

like is that? That's crazy. Yeah, that is pretty cool. I've never tried to be a slump,

“but it's a femoral, you know, like these ideas come and go. I think, personally,”

like the slow study impact that you make by becoming a business, you know, so. I love that. The best offer I've ever run was, and I'm thinking of doing it again. I really want to go on like a, I found some like some ski shallots that are like just off the chart's amazing around Whistler. And I did something many years ago. I ran a mastermind for a marketing company. I worked at, and I did a, I was called Elite Retreat. And we rented all these incredible

villas in Perquette, Thailand. And we had people come out and it was $10,000 a ticket to come. And it was an application funnel. So people had to apply. So, but they were like selling me on why they should be able to come to the event. And then, and one guy paid in a bit coin. When they were, it was, they were worth about $10,000. And a friend of mine knew one of the guys wanting to buy the tickets. He's like, ask him if he'd pay in a bit coin and he'll definitely

do it. And he did that. So, that was quite a profitable sale at this point to, uh, to get that one going.

“Yeah, there you go. There you go. Let's leave it there. And that's what we're going to say,”

ref. I was just going to say, uh, try the difficult promo. You know, like the furthest sale.

I think that's one of my favorite little, uh, little tactics, you know, given...

that they can use to buy something else. Um, if you want, create some stickiness there. So,

“very cool. All right, guys. This was another successful edition of the rundown. It was one of our”

most listen to podcasts, uh, a couple of weeks ago when we ran it. So I'm excited to see, uh,

if the audience likes it. If you guys like it, send me a note at Eric at jerk to consumer.co.

“If you want to get into an audit with these two gentlemen, just uh, fill out the forum at pilothouse.co.”

And otherwise send me some topics. And let me know if you want to come on the rundown.

There's a lot of fun today, guys. I need to get and use to build some, some buttons in or some like

“alarms that go off when when we go in over time. I think, I think we can gamify this a little bit more.”

I'm, uh, I'm excited to, to develop it with you. Awesome. All right. Thanks, guys. Thanks so much for listening to today's episode. If you're not a subscriber to our newsletter, you can do that right now at direct to consumeralloneword.co. I'm Eric Dick and this has been the details he podcast. We'll see you next time. Holiday starts early on Walmart Marketplace, apply to sell and get your inventory to Walmart fulfillment centers by September 15th to prepare

for millions of holiday shoppers. Build your seasonal assortment with customer favorites, products Walmart customers love and are actively searching for. Add eligible customer favorites to your catalog and you can receive up to 100% off referral fees on those items. Get holiday ready with Walmart Marketplace. Visit Marketplace. Walmart.com/dtcpod and sign up today.

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