Cherene Aubert, founder and CEO of Growth Capital, a prominent advisory firm specializing in scaling premium, high-growth direct-to-consumer (D2C) brands, has recently articulated a series of strategic recommendations for e-commerce businesses navigating the complexities of marketing and profitability. Aubert, whose career since 2013 has been dedicated to managing, advising, and executing e-commerce marketing campaigns across agencies, merchants, and freelance consulting, shared her expertise in a recent conversation, emphasizing a data-driven approach that prioritizes customer experience and sustainable growth over immediate, margin-eroding discounts.
Aubert’s advisory firm, Growth Capital, has established itself as a key player in assisting brands to achieve significant scaling. Her extensive background includes serving as Head of Strategy at Common Thread Collective, a D2C-focused agency, and holding senior marketing positions at notable brands such as Ilia Beauty, a well-regarded skincare company, and Bobbie, a rapidly growing infant formula brand. This diverse experience underpins her nuanced perspectives on effective promotional strategies and customer engagement.
Rethinking Product Promotions: Beyond the Discount
One of the central themes emerging from Aubert’s insights is a critique of the common practice of heavily discounting slow-moving or problematic products. She argues that this approach, while seemingly a quick fix to clear inventory, can be detrimental to a brand’s long-term health and customer perception.
"Brands are too quick to discount slow-moving products," Aubert stated, highlighting a prevalent industry tendency. "Instead, bundles or buy-one-get-one offers are often better. Higher-priced goods typically appeal to existing customers, not new ones. Influencers drive acquisition."
Aubert elaborated on this during the interview, explaining that the primary goal of any promotional offer should be to enhance, rather than detract from, the customer experience. She pointed to market research indicating that while social media is a top discovery source, physical retail remains the dominant sales channel for many product categories. This suggests that consumers often purchase online out of necessity or convenience, making the online experience paramount.
In sectors like beauty, where products can become obsolete due to expiration, discontinuation, or formulation issues, the impulse to discount can be strong. However, Aubert cautions against making these items accessible to new customers who may not have had prior exposure or positive experiences with the brand. "The first reaction is often, ‘let’s just discount this thing to move it’," she explained. "But what you’re doing is making it accessible to new customers, but it won’t be the best experience. You’re selling a product that everyone hates."
Instead, Aubert advocates for a more strategic approach that leverages the appeal of core products. For instance, a brand could offer a highly desirable, full-priced item and include the less desirable or discontinued product as a free add-on. "Rather than 50% off a terrible product, they pay 100% for an amazing product, which includes the discontinued item that would be trashed anyway," she proposed. This strategy preserves the perceived value of the core offering while still addressing inventory challenges, ensuring that the customer’s primary interaction is with a product they genuinely want and appreciate. The implicit understanding is that the value proposition remains high, as the customer is acquiring a premium item, with the "bonus" item carrying minimal perceived risk.
The Power of Bundling for Core Products
When it comes to products that are core to a brand’s collection but may move slower than others, Aubert champions the strategic use of bundling. This method allows brands to package desirable items with slower-moving ones, effectively increasing the perceived value for the customer.
"Say you have a slower mover that’s a core part of your collection. This is where bundling can be effective," Aubert advised. "You’re positioning the customer to buy the one thing she wants and receive five other things."
She provided concrete examples to illustrate the concept. In the beauty industry, a bundle could be curated to include all the necessary products for a "five-minute face," incorporating both popular and less frequently purchased items. For food products, a sampler kit or a morning routine bundle could serve a similar purpose, encouraging customers to explore a wider range of offerings. The key is to create a compelling package that addresses a customer need or desire, making the inclusion of the slower-moving item a value-added benefit rather than a concession.
Strategic Offer Design: Aligning Goals and Customer Experience
The successful implementation of any promotional strategy, whether a bundle or a BOGO, hinges on clearly defined objectives and a deep understanding of the target audience. Aubert emphasized the critical need for brands to clarify their primary goals before launching an offer.
"Start with what you’re trying to achieve," she urged. "For example, are you looking to reduce your customer acquisition cost or, instead, increase average order value? Those two goals often pull each other apart. The more you reduce your CAC, the more your AOV goes down, and the more you increase your AOV, the higher your CAC goes."
This dichotomy between customer acquisition cost (CAC) and average order value (AOV) is a fundamental challenge in e-commerce marketing. Aubert stressed that while both are crucial, they require distinct strategic approaches. Reducing CAC often involves attracting new customers with introductory offers or lower price points, which can naturally lower AOV. Conversely, increasing AOV typically involves encouraging existing customers to purchase more, often through bundled deals or premium product offerings, which may lead to a higher CAC if targeting new demographics.
Aubert also underscored the importance of tailoring offers to specific customer segments and stages of their journey with the brand. "Be very clear about the best customer experience and who the offer is for," she advised. "Should new customers buy everything all at once? Or do they buy a trial product or an introductory kit to get them involved in the brand?"
Introductory kits, for instance, can be strategically placed on a website or made accessible through site navigation to capture the interest of first-time visitors. Higher AOV offers, on the other hand, are generally more effective when targeted at existing customers, who are more likely to be receptive to larger purchases and can be reached through channels like email and SMS marketing.
Leveraging Influencers and Channel Strategy
Influencer marketing continues to be a powerful driver for customer acquisition, particularly for higher-priced items. Aubert noted that partnering with influencers can be an effective way to introduce and promote premium products, as their endorsement can lend credibility and appeal to a targeted audience. "There’s unlimited opportunity for experimentation" in this space, she added.
However, Aubert also cautioned against an over-reliance on special offers. The ultimate aim for any sustainable business should be to achieve full-price transactions for as long as possible. Promotional campaigns, while valuable for specific objectives, should not become the primary mode of revenue generation.
Regarding advertising channels, Aubert offered a nuanced perspective. Direct-response advertisements, particularly for single products, tend to perform best when focused on clear calls to action. Conversely, video ads showcasing multiple products are more akin to brand advertising, aiming to build awareness rather than drive immediate sales.
The selection of marketing channels, Aubert explained, is highly dependent on the product category and the business’s current stage of development. TikTok, for example, has emerged as a potent platform for brand awareness. While TikTok Shop may not always be the most profitable channel in terms of direct margin, it offers a unique avenue for scaling affiliate influencer content, which can be instrumental in overcoming the common challenge of content generation for many brands.
"I work with brands that use influencer affiliates as their primary acquisition driver, and Meta for retargeting and AOV products," Aubert revealed. She further noted that Meta (Facebook and Instagram) often exhibits superior marketing efficiency ratios, and paradoxically, CACs on Meta can sometimes be more favorable for non-acquisition campaigns, suggesting that retargeting and customer retention efforts can yield significant returns.
The Future of E-commerce Marketing
Aubert’s strategic recommendations point towards a future of e-commerce marketing that prioritizes intelligent customer segmentation, value-driven offers, and a deep understanding of channel effectiveness. Her emphasis on leveraging influencer marketing for acquisition, Meta for targeted retargeting and AOV growth, and the strategic use of bundling and value-added promotions signals a sophisticated approach to maximizing profitability while minimizing margin erosion.
The insights shared by Cherene Aubert provide a valuable roadmap for D2C brands seeking to navigate the competitive e-commerce landscape. Her emphasis on customer experience, strategic offer design, and data-informed channel selection offers a pathway to sustainable growth and enhanced profitability.
Those seeking further engagement with Cherene Aubert and Growth Capital can visit their website at GrowthCapital.co. Aubert is also active on social media platforms, with profiles available on X and LinkedIn, providing ongoing insights and commentary on the evolving world of e-commerce marketing.
