Customer EconomicsObservation 0022 min read
−14.6%
Growth is not the same thing as value.
A business can get bigger and weaker at the same time. The gap shows up first in the customers, not in the P&L.
Consumer Brands
Consumer brands grow on demand they do not have to buy twice.
Market context
Market context
Consumer brands sell through their own channels, retailers and marketplaces at once. Growth depends on the quality of acquired demand, the price the brand can hold, and how much repeat and brand demand arrives without paid media.
Commercial pressures
- 01Paid demand replacing brand demand without anyone deciding it should.
- 02Retail and marketplace margin pressure.
- 03Promotions becoming the default reason to buy.
Customer economics questions
The questions leadership should be able to answer.
Q1
What share of demand arrives without paid media, and is it growing?
Q2
Which channels create repeat customers rather than one-time buyers?
Q3
How much price premium does the brand hold against the category?
Relevant capabilities
Where the work usually starts.
- 05Customer & Brand StrategyUnderstand how customer experience, preference and brand influence commercial value.Explore capability
Repeat · Future demand
- 01Customer EconomicsUnderstand the quality and economics of the customers generating growth.Explore capability
Customer · Contribution · Repeat
- 03Revenue & PricingImprove revenue quality and capture more of the value being created.Explore capability
Transaction · Contribution
Illustrative commercial problem
Illustrative · Not a client example
Growth bought, not built
Illustrative pattern. Direct-to-consumer revenue grows while branded search and direct traffic decline. The brand is paying to reacquire customers it once attracted for free.
Also in Consumer & Retail
Intelligence
Related thinking.
Customer EconomicsObservation 0042 min read
1.2 : 1
The ratio that reads 3 to 1, and isn't.
An LTV:CAC ratio is only as good as the churn behind it. Replace assumed churn with observed churn and the green light can turn red.
PricingObservation 0062 min read
+75%
The discount that needs 75% more units.
Break-even volume on a promotion is almost always higher than the discount itself. At 30% off and a 70% margin, it is 75%.
A TCB engagement
10–15
Business days
Customer Economics Sprint
One commercial diagnosis and a clear 90-day path forward: the constraint identified, the economics diagnosed, the opportunity benchmarked and the intervention prioritized.
Bring the constraint.We'll give it direction.
Start with the commercial problem you're trying to solve. We'll identify the constraint, diagnose the economics, and determine whether there is a useful next step.
- 01Identify the constraint
- 02Diagnose the economics
- 03Recommend the right intervention
- 04Define the next move