Growth · Ecommerce · PerformanceStrategy exercise

Illustrative: diagnosing a D2C brand that is spending more but growing less

A hypothetical commercial diagnosis showing why increasing paid media budget can hide a deteriorating growth system.

Proof of work

Illustrative scenario. Company, data and outcomes are hypothetical.

The strategic lesson

When marginal growth gets expensive, the answer is often upstream of media buying.

All numbers are hypothetical and not client results.

01 · The problem

What was actually stuck?

Assume a D2C brand has doubled monthly paid media spend from ₹40 lakh to ₹80 lakh while revenue increased only 18%. CAC is rising and repeat purchase is flat.

02 · Diagnosis

What did the evidence suggest?

The business is treating acquisition as the growth lever even though the economics point toward proposition, landing-page conversion, merchandising and retention constraints.

03 · The work

From diagnosis to intervention.

01

Decompose growth into traffic, conversion, average order value, first-to-second purchase and contribution margin.

02

Separate incremental from blended CAC.

03

Identify products and cohorts with strong repeat economics.

04

Test landing-page and offer architecture before scaling spend further.

05

Build a lifecycle programme around the first 30 days after purchase.

04 · Measurement

What should move if the strategy is working?

Hypothetical reduction in incremental CAC
First-to-second purchase rate
Contribution margin after marketing
Landing-page conversion
Repeat revenue share
05 · Outcome

What changed?

Illustrative target: restore profitable growth by fixing the economic bottleneck instead of simply buying more traffic.

06 · What I would carry forward

Principles, not playbooks.

01

Growth is an economic system, not a media dashboard.

02

The cheapest acquisition is useless if the customer does not create durable value.

More proof of work

See how the same thinking changes across different marketing problems.

Your problem

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