Starting Point

A fast-scaling e-commerce brand hit its ceiling.
 

CAC rose, margins shrank, and cash flow volatility increased.

Underlying Structural Problem

The brand had a single-channel, single-metric growth strategy:

• over-reliance on paid traffic

• undifferentiated value proposition

• no compounding margin engines

• thin moat versus competitors
   

Strategic Interventions

We rebuilt the profit architecture:

• repositioned from product-led to outcome-led lifestyle system

• introduced a recurring margin layer through memberships

• built a differentiated product spine tied to scarcity and defensibility

• redesigned CAC strategy around owned media and LTV leverage
   

Impact

• CAC reduced by 27%

• contribution margin increased +19%

• revenue volatility flattened

• valuation uplift projected at +$10M despite flat revenue