M
MH-1 Growth Intelligence

Growth Measurement
Framework

A calibrated system for measuring what matters — built specifically for Shepherd Boy Farms.

Prepared for Ashton Hood · Re-Kickoff · April 2026

02 / 14

Current State

Your DTC business
by the numbers

$2,927
DTC Revenue / Month
90d actual: $8,782 · Target: $30K/mo
0.72%
Site Conversion Rate
Benchmark: 2.5–4.0% for premium DTC pet food
$98.67
Average Order Value
Repeat buyer AOV is $34 (treat-heavy reorders)
25.3%
Repeat Purchase Rate
838 one-time buyers · 284 repeat · 82 loyal
$603
Average LTV (active buyers)
Range: $22 (one-time treat) → $2,988 (subscriber)
4,124
Monthly Sessions
60% organic search · 21% direct · 3% paid

Source: BigQuery / Shopify — validated 2026-04-13. All figures are DTC website only.

03 / 14

The Problem

Wrong numbers
destroy trust

On April 9, a report went out with data errors. Here's what happened and how we're fixing it permanently.

8× ROAS reported — actually ~1×
Revenue included Faire wholesale, Walmart, and $0 sample orders — not just DTC website sales.
Fix: All metrics now filter to DTC website orders only, with 5 automated sanity checks.
Meta over-claiming conversions
Meta counted recurring subscription renewals as new conversions. 6 claimed vs 5 actual orders (4 of 9 were $0 samples).
Fix: ROAS now uses Shopify-attributed orders, never platform self-reported numbers.
Subscription pricing math wrong
Report said $5.91/day for a 50lb dog. Actual: $10.50/day ($314.85/mo) based on real product pricing.
Fix: All pricing calculations now use actual product data — never AI estimates.
Root cause: no measurement framework
Reports were generated from raw Shopify data instead of filtered, validated mart tables.
Today we're establishing the framework that prevents this permanently.
04 / 14

The Framework

Your growth engine
has three motions

Every DTC brand's growth is powered by three interconnected systems. These motions aren't separate — they feed each other in a compounding loop.

When aligned, every cycle generates more fuel than the last. That's a flywheel.

When misaligned, you're burning money into a void. That's where SBF's paid acquisition was — 0.3× ROAS on meal ads.

The framework determines what we measure. If a metric doesn't map to a motion, we don't report it.

Acquisition New customers Monetization Convert to $ Retention Keep buying REVENUE reinvested as fuel
05 / 14

SBF's Motions

How your engine works

🎯

Acquisition

Paid + Content

Meta/Google ads bring cold traffic. Organic search (60% of sessions) pulls in high-intent pet owners researching freeze-dried food.

💳

Monetization

Product-Led (Self-Serve)

Customer lands on site → browses products → adds to cart → checks out on Shopify. No sales team needed for DTC.

🔄

Retention

Hybrid

Consumable repurchase cycle (treats every 2–4 weeks, meals every 3–6 weeks) + Subscribe & Save + email/SMS flows.

Key insight: SBF's motion combination (Paid + Product-Led) puts you in the Medium CAC band. The treats-first strategy only works if the retention flywheel graduates customers up the product ladder.

06 / 14

The Engagement Flywheel

The product ladder
is your biggest lever

A $22 one-time treat buyer can't fund acquisition. A $603 repeat buyer can. The product ladder is the bridge.

Each rung deepens engagement and increases customer value. The key question isn't "what's our ROAS?" — it's "are customers climbing the ladder?"

This is the ultimate health metric for SBF. If the ladder works, everything works. If it doesn't, no amount of ad spend can fix the economics.

Treats
$16–$21
Toppers
$14–$25
Meals
$38–$42
Premium
$45–$120
Subscribe
$65+/mo
07 / 14

Growth Economics

The math that bounds
everything

Before we can evaluate any channel, we need the financial physics of your business. This one formula tells us if the flywheel can spin.

Target CAC = ARPU × Gross Margin × (Payback ÷ 12)
If your actual CAC exceeds your Target CAC, the flywheel doesn't spin. Period.
~$128
Est. ARPU
$98.67 AOV × 1.3 orders/yr
???
Gross Margin
Blocked — need COGS from you
???
Target CAC
Blocked by gross margin
$200+
Actual CAC (Meta meals)
Target: $15–$25 via treats
08 / 14

What We Need From You

Five inputs that
unlock everything

These are the numbers only you have. Everything else we can pull from the data.

① COGS per Product Category
Without this, we can't calculate margin → can't calculate target CAC → can't evaluate any channel.
e.g. "Treats cost us $4/bag, we sell for $18"
② Shipping Cost per Order
Eats into margin and changes the CAC math significantly for heavy pet food.
e.g. "$8.50 average"
③ B2B Revenue (annual range)
We need to know what % of total business is DTC so we're measuring the right thing.
e.g. "$3M–$5M"
④ Target Payback Period
How fast do you need to earn back acquisition cost? Shorter = more conservative.
6 months is standard for DTC
⑤ Monthly Growth Budget
Bounds the scale of what we can test on paid channels.
e.g. "$5K/month to start"
09 / 14

The Measurement System

20 metrics across 5 layers

Every metric maps to a motion. Every metric has a verified source and known gotchas.

Layer 1: Growth Economics

— the guardrails
#MetricDefinitionAccuracy
1ARPUAnnual revenue per DTC customerExact
2Gross Margin(Revenue - COGS - Shipping) / RevenueYou Provide
3Target CACARPU × Margin × (Payback / 12)Blocked
4Blended CACTotal spend / new customersExact
5LTV:CACLifetime value / acquisition costDirectional

Layer 2: Acquisition

— is the new customer flywheel spinning?
#MetricDefinitionAccuracy
6Sessions by ChannelWebsite visits grouped by traffic sourceExact
7New CustomersFirst-time buyers in periodExact
8CAC by ChannelChannel spend / attributed new customersDirectional
9Channel ROASDTC revenue attributed to channel / spendVerified
10Site CVROrders / SessionsExact
10 / 14

Layer 3: Monetization

— how efficiently are visitors becoming dollars?
#MetricDefinitionAccuracy
11DTC RevenueWebsite-only net sales (excludes Faire, samples, wholesale)Exact
12AOVRevenue / Orders (DTC only)Exact
13Product Category MixRevenue % by treats / toppers / meals / premiumDirectional
14Subscription MRRMonthly recurring revenue from Subscribe & SaveExact
15Active SubscribersNon-cancelled S&S enrollmentsExact

Layer 4: Retention

— are customers climbing the product ladder?
#MetricDefinitionAccuracy
16Repeat Purchase Rate% of buyers with 2+ ordersExact
17Cohort Retention% of each month's new customers who reorderDirectional
18LTVAOV × Purchase Frequency × Customer LifespanDirectional
19Time Between OrdersAvg days from order 1 to order 2Directional
20Product Ladder Progression% of treat buyers who later buy toppers → mealsDirectional

Layer 5: Operational Integrity

— 5 automated QA checks that run before any report reaches you

Revenue reconciliation · Meta conversion accuracy · $0 order detection · Subscription renewal dedup · Data freshness

11 / 14

Data Scope Rules

Five rules that
prevent bad numbers

Rule 1
DTC Revenue = Website Orders Only
Excludes Faire, Walmart, $0 samples, draft orders, POS
Rule 2
ROAS Uses Shopify Attribution
Never Meta/Google self-reported. Only ~31% have UTM — always caveated.
Rule 3
Subscription Renewals ≠ New Conversions
Recurring orders are retention events, not acquisition events.
Rule 4
Pricing Uses Actual Product Data
Never AI estimates. A 50lb dog on pork = $314.85/mo, not $177.
Rule 5
Every Report Includes Data Notes
What's included, what's excluded, known limitations, source caveats.
12 / 14

The Calibration Process

How we validate
every number

Before Meeting

We Prepare

Run all 20 metrics from current data. Run 5 sanity checks. Prepare our numbers.

During (10 min)

Framework Review

Walk through the growth engine model: motions, flywheels, why these metrics.

During (15 min)

Your Inputs

You share COGS, shipping, budget. We unlock the growth economics layer live.

During (25 min)

Number by Number

Compare our metrics to yours. Root-cause every mismatch together.

After Meeting

We Lock It Down

Document all definitions. Set up automated QA. Ship your live scorecard.

Pass Criteria

$0 delta
Board-Level Metrics
Revenue, Orders, Customers, Spend
≤ 5%
Operating Metrics
AOV, CVR, ROAS, Repeat Rate
≤ 15%
Directional Metrics
LTV, Cohort Retention, Product Ladder
13 / 14

Going Forward

The ongoing
measurement cadence

Calibration isn't a one-time event. It's a rhythm that ensures the numbers stay accurate as your business evolves.

Weekly

  • Run 5 sanity checks
  • Refresh acquisition + monetization metrics
  • Flag any swings > 30%
  • QA before any client-facing report

Monthly

  • Full 20-metric refresh
  • Compare to your dashboard numbers
  • Log calibration results
  • Graduate repeat ad-hoc queries to governed metrics

Quarterly

  • Deep calibration session with Ashton + Josh
  • Review growth economics (ARPU, margins)
  • Update product pricing data
  • Evaluate product ladder progression
  • Assess channel viability vs guardrails
14 / 14
M
MH-1 Growth Intelligence

Accurate data.
Clear framework.
Every number earned.

We measure what the flywheels need. We verify against your sources. We caveat what we can't prove. And we get better every month.

20
Governed Metrics
5
Automated QA Checks
5
Data Scope Rules
3
Calibration Cadences

Next step: Ashton provides the 5 inputs → we unlock the growth economics → ship your live scorecard.