Perpetual Traffic – Episode Summary

Episode: From $5M to $32M in 2 Years [Premium eCommerce Case Study]
Host: Ralph Burns
Date: February 17, 2026

Episode Overview

In this solo-hosted episode, Ralph Burns, CEO of Tier 11, shares an in-depth case study on how his agency helped scale a premium eCommerce brand from $5 million to $32 million in annual revenue over two years. This episode dives into the frameworks, data strategies, and creative approaches used to drive massive growth, focusing on actionable tactics for marketing decision-makers aiming to scale high-ticket, D2C businesses.

Burns details the challenges the client faced, the systematic steps taken to solve them, and the critical importance of having accurate performance data and a robust creative strategy—particularly for brands with higher average order values (AOV). The approach is rich in metrics, channel strategy, and practical tips, with a tone that is both direct and instructional.

Key Discussion Points & Insights

1. Client Context & Growth Challenge

• Initial State:

  • $5M in annual revenue (2023), 18,000 customers, heavily reliant on two traffic channels
  • In-house marketing team lacked deep technical expertise
  • Had been burned by previous agencies
  • Sought much loftier growth (targeting $50M)

• Results Delivered:

  • $32M in annual revenue by 2025
  • 113,000 new customers (503% increase)
  • Over 540% total revenue growth

“5 million in 2023, 18,000 new, 32 million in revenue in 2025 with 113,000 new customers. That is a 543% revenue increase with a 503% new customer increase.” (10:42)

2. Key Problems & Breaking Revenue Ceilings

• Problem 1: Overreliance on limited traffic channels (Meta, Google).
• Problem 2: Gaps in in-house marketing, especially data integration across platforms.
• Problem 3: Growing ad costs. NCAC (New Customer Acquisition Cost) & CAC (Customer Acquisition Cost) were increasing unsustainably with scale.
• Problem 4: Failure to focus budget and creative effort on best-selling, high-margin products.
• Problem 5: Misaligned audience targeting—too much focus on 65+ demographic, neglecting high-AOV younger buyers.
• Problem 6: Under-leveraged B2B potential (most sales were D2C).

3. The Tier 11 Growth Framework

Step 1: NCAC Reducer Framework

• Action: Rigorous calculation and ongoing monitoring of New Customer Acquisition Cost (NCAC).
• Tools: Tier 11's MPI (Marketing Performance Indicators) Checklist and NCAC Calculator.
• Insight: Most businesses don’t know their own true acquisition costs, hampering scale decisions.
• Outcome: Instituted financial controls—redirected ad efforts to ensure sustainable NCAC at scale.

“It’s absolutely amazing that most businesses don’t really know what [their NCAC] is or the math behind the initial sale.” (14:55)

Step 2: Data Integrity with Tier 11 Data Suite

• Action: Installed proprietary Tier 11 Data Suite for real-time, cross-channel performance measurement (using edge-server click tracking and advanced attribution tools).
• Tech Stack: Blotout (edge tracking), Wicked Reports (interface)—99.4% accurate click data.
• Benefit: Eliminates platform attribution blindness (e.g., post-iOS 14), drastically improves decision-making on where to invest.
• Output: Centralizes data for all channels (Meta, Google, Amazon, YouTube, SMS, TikTok, more).

"With our Data Suite, you get real click data, not modeled data. That’s how you know if you can profitably scale.” (43:12)

Step 3: Creative Diversification

• Action: Broadened ad creative types, optimized toward top revenue-generating demographics (25–54).
• New Tactics:
  • 9:16 format video for Instagram and Facebook Reels
  • Lo-fi, native-style video content (even if off-brand), targeted to younger, higher-AOV audiences
  • Message segmentation by audience (e.g., ads tailored specifically to gun owners)
• Message Shift: Focused entirely on hero product and top-selling variants, not attempting to push less relevant SKUs.
• Measurement: Used software like Motion to track hook rate, hold rate, and watch scores—refining based on performance.

“Creative diversification is the key to everything we’re doing right now and will be, especially as Meta is the number one platform…” (51:25)

4. Specific Solutions & Tactical Changes

a. Audience Targeting Revamp

• Old: Meta automated to 65+ (due to legacy ad data)
• New: Manual cap—shifted ad budget to 25–54 age segments with higher AOV
• Result: Younger audiences brought higher order values; older demo was no longer disproportionately targeted

“We needed new creative, we needed new targeting, we needed to be able to attract those younger buyers because we could also see in the backend…that they also had a higher NAOV.” (30:35)

b. Hero Product Focus

• Shifted all spend and creative resources toward their hero product (the “bestseller 801 case”), with best margins and customer appeal.

“Instead of trying to be all things to all people, double down as much as you possibly can on the best sellers, the ones with the best margins.” (28:40)

c. Platform & Channel Optimization

• Instagram Reels & Facebook Reels: Major move to vertical video for higher engagement
• Dramatic growth in orders traced back to this channel mix shift.

d. Dashboard & Performance Clarity

• Agency decision-making based on blended metrics, not single-channel “last click” reporting.
• Key metrics monitored:
  • NCAC (New Customer Acquisition Cost)
  • ACAC (All Customer Acquisition Cost)
  • AOV (Average Order Value), NAOV (New Average Order Value)
  • Top-line Shopify revenue—year-over-year growth

Notable Quotes & Memorable Moments

• On Creative Risk:
  “These lo-fi ads—maybe not really super in line with your brand...but this is the stuff that really works. Very TikTok, very Instagram Reel types of ads.” (56:20)

• On Attribution & Data:
  “The sale might actually come on another platform, and it’s usually very bottom of the funnel...Meta and YouTube create awareness, Google closes the sale. So you’ve got to look at everything together.” (53:00)

• On Metrics-Driven Growth:
  “At the core of all this is business metrics. Those are the ones that really matter because that produces the growth that ultimately scales.” (31:40)

• On Doubling Down:
  “Show your best-selling stuff that appeals to the widest audience, then just do open targeting and have really, really good messaging that speaks to that customer.” (57:18)

Important Timestamps

• 00:02:10 – Client background and initial challenges
• 00:08:40 – Key growth results summarized
• 00:12:30 – Explanation of the NCAC Reducer Framework
• 00:26:45 – Audience targeting problems—Meta skew to 65+
• 00:29:30 – Refocusing on core customer segments
• 00:32:15 – Hero product focus and SKU prioritization
• 00:36:50 – Shift to Reels and creative format overhaul
• 00:43:10 – Deep dive into Tier 11 Data Suite & attribution
• 00:51:25 – Explanation and implementation of creative diversification strategy
• 00:56:20 – Example of lo-fi creative and why it works
• 00:59:00 – Year-by-year performance (2023–2025) and future goals
• 01:02:10 – Wrap-up; call to action and recommended resources

Episode Takeaways

• Know Your Numbers: Clarity on acquisition costs is non-negotiable for scale.
• Creative Refresh: Don’t hesitate to break brand norms with “lo-fi,” platform-native ads if they convert.
• Data Integrity: Cross-channel attribution and data blending, not siloed “last click” analysis, is how you unlock full ROI.
• Focus Wins: Allocate disproportionate investment to your best-selling, high-margin product; upsell/cross-sell later.
• Channel Mix is Key: Don’t let automated platform optimizations decide your audience—actively steer creative and spend.

Recommended Resources:

• NCAC Calculator
• Marketing Performance Indicators Checklist

For More:
Head to perpetualtraffic.com and check the video version for all supporting slides.

“And with that, we’ll see you next episode…” (ending at ~1:02:30)