May 13, 2015

Partnering With Amazon

You could do the hard work to acquire your own online buyer - and get a summed repurchase probability of about 24%.

Or, you could beg Google for a customer ... paying Google for the current transaction and for nearly half of future transactions ... and you could acquire a customer that is less valuable (sounds good) with just a 19% summed repurchase rate.

Or, you could be "strategic" and partner with Amazon. Pay Amazon. What happens?

A summed 15% annual repurchase rate ... so you acquire a customer even less valuable, you pay Amazon for the right to enjoy this customer, and twenty-six percent of future purchases go to search, enabling Google to jump in on the profit you used to generate.

You're probably running these analyses, and you fully understand how your strategic vision impacts the future trajectory of your business, right? Rest assured, Google and Amazon know what happens. They love it when you put your strategic omnichannel hat on and open your wallet and pay them for the opportunity to share a customer.

Or, you could do the hard work to harvest your own customer, a customer worth much more to your business.

The choice seems pretty simple, doesn't it?