Startups

‘Spend on marketing if you’re getting a discount’: Mike Duda on how to navigate the new CAC landscape

Just because CAC is down, it doesn't mean aggressive marketing is right for everyone, said Mike Duda at this week's Modern Retail+ Talks. He explained what the new landscape means for DTC brands' future and how to think about longterm growth.

By Modern Retail

Latest Stories

  • MAY 07, 2020
    Q&A

    ‘I would not be launching right now’: Jesse Derris & Matt Higgins on how the investing landscape has changed

    Since launching in 2013, Derris has quickly become one of the go-to public relations agency for direct-to-consumer startups. Since then, its founders Jesse Derris and Matt Higgins have also parlayed the success of Derris into an investing arm. Derris and Higgins are the founders of a fund called Amity Supply, which launched in 2017 with an initial $10 million fund and primarily invests in startups pre-launch. Its portfolio companies include telemedicine brand Hims, and acne care brand Starface.

  • MAY 06, 2020

    How activewear brand Ten Thousand achieved profitability during the coronavirus

    "Don’t grow fixed costs immediately and stay within the realm of keeping marketing costs flexible,” said CEO Keith Nowak, which comes in handy during inevitable global economic crisis.

  • MAY 04, 2020

    Alcohol brands move ad dollars away from billboards to delivery startups

    For Bacardi, “For us this is part of our larger, long-term strategy," said Lorran Brown Cosby, vp of digital commerce at Bacardi North America.

  • MAY 01, 2020

    ‘Reminded me to be more human than ever’: DTC founders face leadership strains as crisis drags on

    For many direct-to-consumer founders, it's been six weeks of extreme highs and lows -- some companies have recorded simultaneously some of their best and worst sales days within those same time periods. But even companies that have reported record sales haven't been immune from having to lay employees off. As a result, many DTC founders are finding themselves having to navigate situations that they never have been before, and are having to learn new ways of leading.

  • APR 29, 2020
    Q&A

    ‘Meal kits have gotten a bad reputation’: Meal service Freshly now helps companies provide food to employees

    Freshly for Business launched this week to provide employer-subsidized meal delivery for remote office workers. CEO Michael Wystrach thinks "many employees would rather get free meals instead of a desk," which can push the service to grow long past the pandemic.

  • APR 29, 2020

    How Rothy’s created a coalition of DTC brands to help with the PPE shortage

    Personal protective equipment like masks, gloves and face shields are in high demand. Many retail companies today see an opportunity in both donating PPE to medical groups who are running low on critical supplies, and sellng it to customers in need. At the beginning of April, direct-to-consumer footwear brand Rothy's announced that it was launching a group called the Open Innovation Coalition to help companies work together to solve the challenges they are facing in trying to manufacture this equipment.

  • APR 27, 2020

    Once a branding and customer service tool, startups now see SMS as a growing commerce engine

    Like other delivery-related trends, text-to-order may finally see mainstream adoption. "Every brand will have a website to feature products and phone numbers for customer service and transactions,” Iris Nova's Zak Normandin said.

  • APR 27, 2020
    Q&A

    How Thrive Market has handled the online grocery demand spike

    Unlike most grocery retailers, the membership wall makes it harder for Thrive Market to tap into the current demand for Thrive Market. "Those coming in aren’t just looking for a short term delivery solution," said CEO Nick Green.

  • APR 24, 2020

    Lower advertising costs present a double-edged sword for DTC brands

    In some ways, it's starting to feel like the early days of the direct-to-consumer boom all over again. A startup's website is once again its most important sales channel, as stores remain closed. Startups are having to operate with as small of a team as possible. And Facebook is once again a cheap place to advertise. Over the past couple of years, the constant refrain has been that DTC startups need to rely less on acquiring customers through Facebook. As more companies started advertising on the platform, Facebook advertising costs started to rise. Now, as more companies are dramatically slashing their advertising budgets in the wake of the coronavirus, Facebook is becoming less crowded.

  • APR 24, 2020

    RSE Ventures’ Matt Higgins: How DTC brands should approach fundraising right now

    "Focus on storytelling right now," said Higgins. “DTC is predicated on having a one-to-one interaction," with the customer that can't be emulated if there is a middleman.

  • APR 21, 2020

    Online retail’s newest trick to drive sales: A countdown clock

    Some online brands are seeing sales spike, others are plummeting. They are all dealing with myriad other issues putting pressure on the overall business. Some startups are trying out new digital campaigns to try and account for the vast behavior shifts -- all while staying cognizant of the bizarre times we're all in. It's a difficult tightrope to walk, but showcases brand new marketing terrain.

  • APR 21, 2020

    Rory is running its first TV commercial as telehealth is having a moment

    As more people are considering trying telehealth for the first time, Ro is moving forward with marketing and product expansion plans to introduce its women's focused-brand, Rory to new customers. Last week, Rory ran its first-ever TV ad, and this week launched a new product offering, a customized prescription skincare treatment. Rob Schutz, chief growth officer at Ro, said that the company has been "shipping more product than ever before" over the last month. While he declined to share overall growth numbers for Ro, he said that Google search traffic across its three brands -- Roman, Rory and Zero -- was up 30% between March and April.

  • JUL 09, 2020
    Sponsored

    Advertisers’ survey: What’s holding back your ad performance?

    Advertisers, from DTCs scrapping for share in a crackling at-home beauty market to seasoned retailers leaning into the quarantined consumer’s e-commerce surge, what’s changing about your campaign KPIs? How are you using data to make choices and effectively budget across channels? What’s working, what’s broken and how will you fix it? Take this survey and get the full results plus a $5 Starbucks gift card.

Modern Retail Virtual Forum
Aug 10–Aug 11, 2020

At the Modern Retail Virtual Forum, we’ll bring together senior retail marketers online to discuss the challenges they’re facing and the solutions they’re seeking in the era of smarter retail.

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