How to Shift Gears from Growth to Profitability
There’s definitely a trend given the current economic climate where brands that used to focus on disruptive channels to drive growth are shifting gears and doubling down on profitability.
Many people are wondering if the recession is coming, or if it’s already here.
Joe points out that if consumers and brands are both acting like it’s here, whether or not it really is here doesn't exactly matter – the brand/customer relationship is reflecting it.
There’s a lot of pressure on all businesses, no matter the size or stage, to understand the profitability and incrementality of their investments. That means that when CFOs are cutting costs, they’re really scrutinizing marketing investments.
Because of this, CPMs have absolutely plummeted, and if you can’t prove the profitability of your marketing scheme, it’s going to get cut out of the budget.
Growth to Profitability Case Study: Draper James
Black Crow and WITHIN’s collab for Draper James is a great example of doing more with less to focus on business outcomes.
The use case was standard, and involved:
- Building a predictive model for purchases
- Pushing the scores from the model into Meta, which provided some excellent lift for the business
- Helping scale top of funnel, which meant adding extra spend for better efficiency there.
- For bottom of funnel, honing in on users who are likely to purchase to increase return on ad spend while scaling up the spend.
All of these tactics in tandem create a powerful network effect that doubles new customers driven during the period of effort. The top-of-funnel changes attract more eyeballs to the site, and the bottom of funnel communicates with the right people for conversion.
The partnership really enables going after the most incremental segment and improving efficiency while scaling, which is the holy grail brands are looking for.
The account team is also expanding to channels beyond Meta.
Enter Black Crow’s AI Engine: Limitless Model Potential
Black Crow can model any event that a business cares about.
Most brands have an ultimate goal for how they’re trying to direct human behavior. In eCom that’s usually purchasing or subscribing, but some of Black Crow’s customers have secondary models to predict other variables like submitting a lead form or winning an email address.
The WITHIN x Black Crow partnership focuses on supercharging ad performances, so there’s a definite emphasis on leading brands towards ultimate, long-term goals.
“Whatever the ultimate event is that you're trying to optimize your business around, let's predict that thing first.”