A D2C brand's conversion rate is 1%.
This means that 99% of the users who considered the brand after seeing its product during their search didn't want to buy from it right away.
This (99+1)% of the users who considered the brand are typically part of the 5% of the produce interested audience who are in-market to buy the product now.
In this situation, what is a better user acquisition strategy?
- Spending more than 99% of the users who drop off?
- Spending 95% of the users who are interested but not in the market for the product?
PS: This is from my recent discussion with a D2C founder—the solution might need one level deeper thinking.
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