When testing a new, potentially higher-value customer segment, the single most important data point to validate is revenue retention. Focus initial efforts on confirming that new customers reorder quickly, as this proves the long-term viability and stacking revenue model of the new market.

When pitching to retailers, go beyond sales data. Highlighting that customers will go to inconvenient lengths—like meeting in a park in winter—to get your product tells a powerful story of demand and devotion, making a more compelling case for valuable shelf space.

Emerging brands often view landing a major retailer as the ultimate goal. In reality, it's the start of a more complex phase involving distribution logistics, trade requirements, and performance pressure. Success depends on staying on the shelf, not just getting there.

Promote IQ succeeded by targeting large retailers, a market other startups avoided due to its notoriously difficult and long sales cycle. They turned this pain point into a strategic advantage. By mastering the difficult sales process, they created a high barrier to entry that gave them time and space to dominate the category before competitors could catch up.

In every industry, a few established enterprises—like Costco for HR software—act as 'tastemakers' by adopting new technology early. Winning these key accounts first provides crucial validation and influences other companies in the vertical to follow, creating a powerful go-to-market advantage that bypasses smaller customers.

For CPG brands, a physical retail presence, even with lower margins, should be viewed as a customer acquisition strategy. It provides crucial visibility and trial, driving customers to your higher-margin direct-to-consumer website for subsequent purchases and retention.

To land major retailers like Target, Waterboy focused on incrementality. They showed how their strong social presence and differentiated product would attract a new, younger Gen Z demographic to the store, increasing the retailer's overall category sales, not just replacing an existing product.

In low-margin sectors like grocery, chasing sales volume is unsustainable. The true value of retail media lies in improving profitability by driving guaranteed incremental sales and avoiding wasted ad spend on existing customer behavior, directly impacting the bottom line.

Founders often believe fundraising failure stems from a lack of connections. However, for early-stage consumer brands with low sales figures, the real barrier is insufficient traction data. VCs need proof of scalability, like a major distribution deal, before they will invest, regardless of the introduction.