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Invest as if you were already 30% bigger

With 50% churn, more than half of your 2027 revenue will come from customers you don't have yet. The growth budget you need already exists, inside your current performance spend.

Sophia Båge · Ecommerce Growth

If you're lucky, half of your customers will return next year. That means if you want to grow by 30% in 2027, you need to start building the foundation in 2026.

The new customers you acquire next year are the ones that will drive your growth the year after. With a 50% churn rate, you effectively need to replace your entire customer base every two years, and add another 30% on top to grow. More than half of your revenue in 2027 will therefore come from customers you don't even have yet.

That's why you need to invest as if you were already 30% bigger.

In times like these, finding new budget is difficult. That's why we at Untangle Collective developed what we call Cut Waste, a way to identify inefficient spend in performance channels and reallocate that budget toward what actually drives growth, Brand and Customer Acquisition.

Time and time again, we see that as much as 30–50% of ad spend goes toward products that do not contribute to growth.

For example:

  • Low-margin products
  • Products with weak demand
  • Misclassified variants that cause algorithms to “learn the wrong things”
  • Weak signals that make it difficult for algorithms to understand who you are and what you sell

That is money that builds neither brand nor growth.

And that's exactly where your future growth budget already exists.

For every dollar freed from low-performing products, you can instead invest in more budget toward Brand and Customer Acquisition, giving you a stronger foundation for growth over the next two years.

You do not grow because you sell more to the same customers. You grow because more people, and more algorithms, know who you are.

DATA → FEED → SIGNAL → BRAND → GROWTH

About the author

Sophia Båge

Co-Founder, Untangle Collective

Sophia Båge is Co-Founder of Untangle Collective. She works with ecommerce leaders to reconnect performance marketing with profitable growth. Identifying where revenue and margin become disconnected, and what should scale instead.

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