Hello. I'm Brent Freeman. Founder and president of Stealth Venture Labs an elite growth marketing firm that has helped generate over $500 million in recurring revenue for our clients in the last five years. We've worked with hundreds of eCommerce brands, small startups and big companies alike. To help them grow through the growth plateau and achieve higher levels of success.
Today, I'm going to give you our tips and tricks on what it takes to adapt to an ever changing market. We have to be extra nimble as entrepreneurs to really adjust our product, our service, or our offering for what consumers actually want. Not what we think they need. First things first with the thousands of brands that I've worked with in my career, in the hundreds here at Stealth Venture Labs, we have seen a common denominator of five core pieces that are present, omnipresent, in brands that work in scale.
The first one is you need to have a really clearly defined, passionate audience. If you don't have a clearly defined passionate audience, you are just being too broad to too many generic people. One of the biggest mistakes we see all the time is someone says "the target audience is everybody in the United side", "the everybody in Canada", "it's anybody who does shopping."
I'm here to challenge you to say, niche your product down, or your market down a little bit and find that clearly defined passionate interest group. Second one is make sure that clearly defined audience is large enough that you're going after a big target audience. If it's too niche and too small, then you are likely not to have enough people in the pond to fish in, right?
That means your customer acquisition costs is going to be higher than that means that you're going to kind of cap out at a certain, a certain level of success. So make sure that your passionate audience is number two, large enough. Number three is make sure you have a really, really clear value proposition that is compelling to the consumer.
It needs to be unique. It needs to get their attention. Most advertising these days come into play when I'm browsing my social feed, you're going to interrupt my social freed of what my friends are doing, eating, traveling to or whatever, to bring your advertisement, it better get my attention. So if you don't have a compelling unit value proposition or unique selling proposition, then you need to really think about how is it that your product gets someone's attention.
Number four, you need to have compelling unit economics. Those unit economics need to have 50% or higher on your gross product margin. And the price point needs to be disruptive enough to the consumer where they look at it and say, "That's amazing!" "I want that!" And "I can afford it." If your price point is too high, it's very difficult on a budget, especially to make luxury work online.
Not impossible, just very hard. If your price is too high, consumers are going to look at it and say, "ah". You're gonna get a lot of tire kickers, a lot of cart abandonments. Um, and you're going to have a very difficult time backing out of your customer acquisition cost to lifetime value ratio. And fifth, which is so simple that you'd be surprised
how many times people miss this one is, does your product solve a pain? Do you solve a market pain, a customer pain, or are you just a hammer looking for a nail. What I highly recommend to you is that you go back and say what are the pains that my customers have in their day. And what problem do we solve in that day, where they need our product and service.
If you're a must have, you're going to crush it. If you're a nice to have. You're going to get crushed. So as you go through those five and you have a passionate audience that's clearly defined, it's a large enough audience. Then you have a unique value proposition for them and you have good margins, compelling unit economics, and you have good price point to the customer.
And you solve a pain. If you hit all five of those check, check, check, you're now ready to go onto the next step to say, okay, how do we adapt what it is that we do for customers in tumultuous times? That's all the time we have for today. We wish you the best of luck as you look to adapt to this ever changing environment.
And remember, don't just go through it, grow through it.