- The DTC Letters
- Posts
- The $1.2M Backend Retention Secret
Hey, Michael from AdSumo Digital here.
It's 2:47 AM as the time I’m writing this. I'm staring at a Klaviyo dashboard that shows $124,000 in backend revenue for a client who was making $11,000 just 90 days ago.
Same traffic. Same products. Different system… Our system.
Most brands think they have a revenue problem. They hire new ad agencies, launch discount campaigns, try viral TikTok strategies.
But here's what I've learned after working with 30+ DTC brands and generating $20M+ in backend sales:
You don't have a traffic problem. You have a retention problem.
The 97% Problem
Right now, 97-99% of your website visitors are disappearing without buying. They're just... gone.
You're spending thousands on ads to get them to your site, then hoping they'll magically remember you later.
That's like filling a bucket with massive holes in the bottom.
What AG1, Dr. Squatch, and True Classic Know
The best brands make ALL their profit on the backend.
They can spend aggressively on ads because every customer becomes worth 30-50% more through their retention system.
It's not about sending more emails. It's about sending the RIGHT message to the RIGHT person at the RIGHT time.
The 3-Part System That Changes Everything
1. Convert More Visitors
Strategic pop-ups that don't annoy (they actually help)
Relevance-mapped flows based on customer behavior
On-site optimizations where conversions actually happen
2. Increase Order Value
Bundle offers that make sense
One-click upsells that feel natural
Post-purchase cross-sells based on purchase psychology
3. Bring Them Back
Campaigns with actual strategy (not random promotions)
Purchase history segmentation
LTV optimization (push products that create lifetime customers)
The Data That Shocked Me (not really)
One client had a $1,300 LTV when customers bought at least 3 times.
Our entire strategy became: get customers to buy 3 times.
Which means get more customers from 0 to 1, 1 to 2, and 2 to 3.
After we implemented this, they went from struggling to stay profitable to scaling aggressively.
Another client recovered $107,000 in abandoned cart revenue in 30 days with SKU-specific cart recovery.
Why Most "Email Marketing" Fails
Generic templates don't work because every brand is different.
A high-AOV furniture brand needs different psychology than a CPG supplement company.
Most agencies use the same playbook for everyone. That's why they cap at 10-15% performance.
The Real Secret
It's not about the emails. It's about understanding your customer lifecycle.
When do they typically reorder? Day 45? Hit them on day 43.
Which product creates the highest LTV customers? Push that harder.
What's the natural progression path?
Product A buyers usually buy Product B within 60 days? Create a bundle.
This is behavioral psychology applied to your specific business model.
What This Means for You
If you can make every customer worth 30% more, you can:
Spend more aggressively on ads
Scale faster and more profitably
Stop fighting to stay break-even
The math is simple:
Higher backend value = more aggressive frontend spending = faster growth.
One Question
If a customer spent $8 more per order, what would that do to your profit margins?
Now multiply that by every customer you acquire this year.
Add in that 60% of those people come back to buy from your brand a second time, without coming from an ad…
That's the opportunity cost of you not having a proper backend retention system built out for your brand.
P.S. I'm working on something that could help you build this system for your brand. If you're doing $50K+ monthly and serious about scaling profitably (not looking for a "save me my business is dying" solution), book a call here »
Talk soon,
Michael
Today’s Helpful Links
Are You Liking The DTC Letters So Far?Be honest...no gaslighting |