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In a recent episode, we had the pleasure of welcoming McCoy, the Chief Marketing Officer of Portland Leather Goods, back to the show. McCoy shared his journey, reflecting on the company’s tremendous growth since he joined in 2018 when the brand was a small Etsy seller focusing on custom leather bags. Fast forward to today, Portland Leather Goods has evolved into one of the largest independent bag brands in the United States, with over $100 million in revenue.
From Etsy to Independent Success
McCoy discussed the company's early days on Etsy, highlighting how they broke advertising limits on the platform, spending more than any seller at the time. Initially, the business generated around $3.5 million in sales on Etsy, but as McCoy focused on building the company’s independent website, the team shifted its focus to scaling direct sales. This required constant learning, optimising, and handling challenges like high shipping costs, which initially hampered growth.
Incremental Improvements & The Power of Small Wins
One of McCoy’s key takeaways from those early days was the importance of continuous incremental improvements. Whether it was reducing shipping costs or improving the checkout process, every small optimisation led to substantial growth. The analogy of stacking small wins resonated as McCoy shared how simple, focused changes resulted in significant improvements to conversion rates and customer satisfaction.
Scaling Email & Digital Marketing Strategies
In McCoy’s last interview, Portland Leather Goods had 600,000 email subscribers. Since then, they’ve grown to an incredible 4.6 million active profiles in just two years. McCoy attributed much of this success to retention.com, email segmentation, and personalised customer journeys. Additionally, McCoy shared insights into the balance between paid acquisition and email as a retention strategy. While Meta remains a powerful tool for new customer acquisition, email and SMS have become crucial for cost-effective retention.
Empowering Teams & Letting Go of Control
As Portland Leather Goods scaled, McCoy had to transition from being hands-on to empowering his team. He emphasised the importance of hiring great talent and giving them the autonomy to own their responsibilities. McCoy explained how empowering his directors and focusing on the broader company goals enabled him to trust his team’s decision-making, allowing for faster growth and better results. By setting clear objectives and encouraging a creative, problem-solving mindset, McCoy and his team have continued to thrive.
Key Takeaways
- Continuous Improvement: Focusing on small, consistent wins can lead to significant growth.
- Email Growth: Effective email and SMS marketing strategies are crucial for driving revenue.
- Empowering Teams: Successful leaders empower their teams by trusting them with responsibility and aligning them with company goals.
- Retention vs. Acquisition: Balancing new customer acquisition through ads with retention via email and SMS is key to sustainable growth.
McCoy’s insights offer a valuable lesson on how eCommerce brands can scale by embracing constant learning, focusing on retention, and fostering a culture of empowerment within their teams.