If you're wondering about the main reasons behind business failures... (common bottlenecks)

Sep '23 (edited) in Value Feed

We've worked with over 150 businesses, including 100+ DTC brands, in the digital marketing space.

Based on our experience, here are the primary reasons many of them struggled to sell profitably and scale using performance marketing:

1) Lack of Product Quality: No transformational benefit for the target audience.

2) Lack of Product-Channel Fit: While the product might be good in general, it isn't suited for the digital marketing environment.

3) Lack of Brand Fundamentals: Absence of an authentic purpose and brand story results in a weak foundation to build trust and desire.

4) Lack of CLTV-Centered Product Assortment: Inability to build a Customer Lifetime Value of 150€++ due to the lack of upsells, cross-sells, and retention strategies.

5) Lack of Great Creatives: An absence of high-converting, catchy visual photo and video creatives for the product.

6) Bad Choice of IT Tools/Checkout: Poor IT infrastructure leads to issues like long forms, weak UX/UI, and low conversion rates that are challenging to improve.

7) Lack of Passion & Conviction in the Team: It's tough to ignite a social media movement without the "fire" in the founder(s).

8) Lack of User Understanding: Deep research into the customer’s problems, desires, and demands is essential for achieving product-market fit (PMF).

9) Inability to Attract Marketing Talents: Great systems require a team of complementary specialists: design, video, web, copywriting, ads, and more.

10) Lack of Automation: Not just in marketing, but across supply chain, logistics, production, and customer support. To truly scale seamlessly, everything must be highly automated to prevent getting overwhelmed or discouraged.

Anything you can think of that could also make it onto this list?

Comment below! ;)

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