DTC POD: Growth Strategies from Co-founder of Unicorn Ro

This week, we’re joined by Rob Schutz, co-founder of the unicorn Ro, a healthcare company that initially offered ED medications and later expanded into other products and services for sexual health, weight loss, fertility, hair, and skin.

Prior to Ro, Rob was instrumental in the exponential growth of BARK, a now prominent subscription service for dog products. Currently, at Snagged.com, he is focused on helping businesses acquire premium domain names and digital assets.

In this episode of the DTC POD, Rob shares valuable insights into the growth strategies that have contributed to the success of both BARK and Ro. We chat about the importance of focusing on core, consistent marketing channels while also allocating a separate budget for testing and exploring new, experimental strategies and channels.

We also reflect on big unlocks for founders and marketers, like how to plan for scale, set and clearly communicate priorities, foster strong relationships between growth and marketing leaders, and structure teams effectively as the company grows.

Rob also has some serious expertise in website domain brokerage, so we unpack strategies for acquiring and negotiating domain names to help build strong brands.

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Fav Quotes from Episode #338

“If we test too much or put too much budget, it's going to blow out our CAC tolerance for the month. And so I think that was also the benefit, especially as I got to Ro, is truly understanding how we'd approach these things and making sure that we've set the expectation of, like, we're going to take some swings. Most of them probably won't work. It will make CAC look big. But the caveat is we're actually learning a lot and we're learning that we're not going to do those things anymore, which is valuable. Like learning what not to spend time and money on is incredibly valuable. And there's sometimes this perception of like, that was a waste. Like, that was wasted time and money, like, we should be spending more on the things that are working versus viewing that as you paid for education.” — Rob Schutz, 00:23:32 - 00:24:18

“As you move further up the funnel, you start doing radio, you start doing TV, having a tighter domain name can be really helpful. Like if you're doing a radio ad and you're like, go to trypodcast dot io, it's like clunky and no one's going to really remember that. Going to be harder, I think, to make that a channel that works. Same with TV. You don't see a ton of people running on TV that have like really long dot net domain names, you try and try and keep that tight so that there's recall, there's direct type in traffic and then people are searching for you as well.” — Rob Schutz, 00:49:04 - 00:49:28

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3 Best DTC Practices from Rob Schutz

1. Balance core growth channels with experimental ones

While it's tempting to chase the next big thing in marketing, Rob stresses the importance of focusing resources on the channels that are already delivering consistent results for your brand. Whether that's paid search, paid social, email, or affiliates, keep optimizing and scaling what works.

At the same time, set aside a separate budget specifically for testing new, experimental marketing strategies and channels. This allows you to keep searching for future opportunities without disrupting your core growth engines.

Majority of experimental marketing channels you test won't end up being viable. And that's okay — in fact, it's expected. The goal of these experiments is as much about learning where not to invest further as it is about finding new opportunities.

2. Prioritize quality of care as you scale

CX is so important, so you need to maintain a high quality of customer care even as your brand scales rapidly.

Whether you're expanding product lines, raising venture capital, or dealing with increasing regulatory requirements, never lose sight of the customer experience. Everything from your team structure to your processes and technology should be designed to scale quality alongside quantity.

Proactively plan for how you'll maintain personalized, responsive, and empathetic customer care, even as your business becomes increasingly complex. After all, your customer relationships are the foundation of your brand's long-term success.

3. Treat your domain name as a core strategic asset

Having a short, memorable domain name is a major advantage for brands, especially as you expand into offline channels like TV, radio, and direct mail. But many brands put off domain acquisition until it's too late.

As a domain name expert, Rob advises addressing your domain strategy early. For new brands, consider your domain options in tandem with your brand name. If your brand is established, explore creative deal structures to secure your ideal domain.

The perfect domain pays long-term dividends in direct site traffic, SEO, and brand recognition. Treat your domain as a strategic investment, not an afterthought.