This episode of the Scalability School podcast tackles why traditional e-commerce dashboards often fail and outlines the precise financial and operational metrics required for driving profitable growth in 7- and 8-figure D2C brands.

The Andrew, Zach and Brad argue that dashboard failure stems from unclear metric definitions along with a failure to capture the full scope of business expenses. They advocate for moving beyond simple platform ROAS to focus on holistic metrics like Contribution Margin (CM) and/or Estimated Net Profit (by subtracting an estimate of OpEx).

A major theme that arose during this conversation was the critical need to separate New Customer (NC) metrics (like AMER and CAC) from blended metrics, as high blended performance can mask a dying new customer acquisition engine. They also stress that for non-subscription brands, LTV can sometimes be a misleading vanity metric that offers poor cash flow guidance. The episode concludes with a deep dive into using operational metrics like product sales breakdown and day-of-week sales efficiency to inform daily media buying decisions, introducing the key creative signal: Spend Velocity.

Key Takeaways

1. How your blended MER target might actually be masking a New Customer Acquisition (NCA) disaster

2. Why dashboards can help ensure your entire team is looking at the same "Revenue" number

3. How to tell if you are wasting budget on the wrong days

4. How to accurately calculat true profitability before the month closes

5. Why this should be your key metric for predicting creative winners within 3 days

6. Why this 1 metric might be hurting your cash flow if you are a non-subscription businesses

This episode is sponsored by Northbeam, the marketing attribution platform that we love here at Scalability School. If you're ready to cut through the noise, stop guessing, and actually see which ads are driving your business, book a demo at northbeam.io/demo, and tell them Scalability School sent you. Join the club.

To connect with Andrew Foxwell send an email [email protected]

To connect with Brad Ploch send him a DM at https://x.com/brad_ploch

To connect with Zach Stuck send him a DM at https://x.com/zachmstuck

Learn More about the Foxwell Founders Community at https://foxwellfounders.com/