The 4 Stages of a DTC Brand
In this lesson you’ll learn BVA’s 4 different stages of a DTC brand.
So let’s talk about the four stages of life as a DTC brand. The first one I call the builder and this is when you’re typically less than 1 million in annual revenue. So you’re just setting the foundation for your business. You’re getting your site up and running. You’re displaying your catalog you’re getting your brand out there. And most importantly, you’re converting visitors to customers at the second stage you’ve passed that 1 million
mark and now you’re heading toward 5 million of revenue. Call this the adapter and this adaptive stage you’re constantly testing and learning. You have a fail quickly but always forward mentality and you leverage things like A/B testing to see what works and invest accordingly. At the third stage we’ll call it the Scaler. You’re at five million to $50 million in revenue.
But now you’ve got some data and you’re going to leverage it to help grow your business. You’re getting more and more sophisticated in how you track and optimize customer interactions across all of your channel. And the fourth and final stage I’ll call the collaborator. This is where you’re at 50 million or more a year in revenue. And at this stage, you’re looking for expansion. So you might look at going into Europe or Asia new markets while continuing to make technical improvements to your site.
Identify your current stage of business.