Case Study: DTC Turnaround
Stabilizing & Scaling an Omnichannel Retailer’s E-Commerce Business (Q3–Q4)
Overview
In the second half of the year, a national omnichannel fashion retailer engaged our team to stabilize and improve the performance of its direct-to-consumer business during a period of significant organizational and financial constraint.
The objective was not aggressive growth at any cost, but restoring predictability, efficiency, and confidence in the DTC channel while maintaining revenue momentum.
The Challenge
At the outset, the e-commerce business faced several compounding issues:
Paid media channels were underperforming against forecast
Media execution relied heavily on automated product feeds, with minimal creative testing
Forecasting and reporting inconsistencies created internal friction and reactive decision-making
Leadership transitions and resource gaps slowed execution
Promotional activity obscured true funnel health and performance signals
Despite these challenges, customer demand remained intact — the system supporting it did not.
Strategic Diagnosis
The core issue was not traffic or spend. It was signal quality and operational distortion.
Specifically:
Paid media was compensating for gaps in creative and merchandising clarity
Over-promotion masked underlying conversion performance
Inaccurate forecasting drove short-term tactics at the expense of efficiency
Until forecasting discipline, creative velocity, and signal clarity were restored, incremental spend would not produce sustainable results.
What Changed
Working as an embedded partner and de facto operator across performance functions, the engagement focused on four key areas:
1. Forecasting & Pacing Discipline
Forecasting methodology was rebuilt to align with actual channel contribution and pacing behavior, enabling consistent forecast attainment and proactive planning.
2. Creative Velocity & Testing
A structured creative refresh cadence was introduced, incorporating video, UGC, partnerships, and repurposed organic content — shifting paid media from feed-only execution to concept-led testing.
3. Paid Media Efficiency
Media structures were simplified, overlap reduced, and performance management refocused on efficiency metrics such as CAC and MER rather than surface-level ROAS.
4. Signal & Reporting Clarity
Attribution logic and reporting definitions were standardized, restoring leadership confidence and accelerating decision-making.
Results (Q3–Q4)
Generated tens of millions in incremental DTC revenue
Delivered strong year-over-year improvement in DTC performance
Drove outsized contribution during peak holiday periods
Maintained stable CAC, MER, and traffic quality under constraint
Performance stabilized and continued to improve exiting Q4
Most importantly, results were durable, not promotional spikes.
Outcome
By the end of the engagement, the DTC business was:
Operationally stable
Forecastable
Efficient
Positioned for profitable growth in its next phase
The work ensured continuity and performance at a moment when instability could have materially weakened the channel.
