November 05, 2015

The Path To Loyalty Is Bumpy / Spiky / Curvy

This is what it looks like, folks. The first-time buyer repurchased about every six months, in this case.

The customer is responsive ... then becomes progressively less responsive ... then purchases ... then becomes progressively less responsive all over again (but at a higher rate) ... and so on and so on.

It's the six weeks after a purchase when the customer is most likely to purchase again. That's when our marketing programs should be operating in overdrive, don't you think?

But we don't do much in those six weeks, do we?

Instead, we focus on trying to "win-back" the customer who has not purchased in 42 months ... we overlay co-op data and social data and demographic data and we apply complex models that combine discounts and promotions that the customer has already had access to for forty-two months.

Our efforts are too-often focused on when the customer becomes inactive.

Why not focus on the customer when the customer is highly active?