MarGrad® uses a four-stage approach when developing an online business or increasing the footprint of a business already online but not yet fully optimized to be a significant standalone channel. We are platform agnostic and cross channel focused, driven only by leveraging what is best for the business.
How Our Process Protects You
The purpose of the four stages is to assess and forecast the first two stages before making any development or media investments in the third and fourth stages. This disciplined approach protects you from making any investments that we can’t first prove on a financial model. It also governs the pace of investment to a tight set of allowable ranges to avoid overbite during the launch phase.
In the first two stages, we determine the costs of stage three development and stage four onward media investments. This will be documented, presented, and shared in a financial model that covers a 30-month period with 4-year outward view which will also be enabled with “what if” calculators for any material change in revenue or cost assumptions.
Know Before You Spend
Once we establish the model, your Team will gain a clear line of sight into the opportunities and risks before investing a single dollar in development or media acquisition. Our goal is to assist you in avoiding and leaping over the costs of trial and error by establishing the appropriate guardrails within the best business practices and tried and true strategies that we have executed for many clients over our firm’s 25-year tenure in DTC ecommerce.
1. The Learning Phase
We will gain an understanding of the existing offer, creative, media, technology, and fulfillment practices as well as charting all the cost components of each including cost of goods sold, royalties (if any) and any other direct costs that will affect the bottom line and cash flow.
2. The Modeling Phase
We translate the fixed and variable cost components in relation to the list price versus the promotional sales price overlaid with media acquisition costs, technology expenses, and any third-party contributors with an offset for repeat purchase, subscription, and existing house file customer revenues to establish a lifetime value proforma P&L and cash flow / breakeven to profit analysis.
3. The Development Phase
We together streamline the website creative, genre specific mini sites, landing pages and marketplaces, establish search engine and bid optimization, implement technology enhancements, streamline fulfillment operations, and build out the customer communication strategy and hierarchy.
4. The Execution Phase
We launch offer(s) strategies and build media plans to include search, social, influencer, affiliate, programmatic and partnerships that do not disrupt current channel trade partners. Thereafter, procure media deals, drive website traffic, and analyze the key performance indicators to track against the approved financial model.
