The customer acquisition game has changed in the last year for DTC brands, with customer acquisition costs fluctuating and e-commerce becoming the dominant retail channel. Two-year-old DTC brand Xena Workwear is an online-only brand that’s managed to ride some of those changes to a year of growth. Its annual sales increased by more than 1,000% in 2020, and the company hit a milestone of selling 1,000 pairs of boots per month.
Xena CMO Eugene Furman attributed the growth to efficient use of Google Shopping and Google search ads, which along with Facebook ads, make up more than 75% of the brand’s marketing budget. While Amazon is where many consumers begin their search, he said he’d rather invest in Google because of the wealth of data it provides, compared to Amazon.
“Amazon controls all of your data,” Furman said. “If someone searches [your brand] on Amazon, all the data goes to Amazon. They control everything. They may share it with you, but they’re trying to drive sales on their own site. But Google drives to your site, and they want to promote you. Amazon is sort of like renting, and Google is like owning. We just get a lot more data from Google about who’s searching for us, how many people clicked through and what [search] terms are pointing to us.”
Furman said Xena has been increasing its ad spend on Google, up to several thousand dollars per day from just over $1,000, over the last six months.