March 17, 2016

Merchandise Categories Matter in Lifetime Value Calculations

Here's a typical story.


Now, let's assume that the customer purchased from Merchandise Category 3 instead of Merchandise Category 1.


#OhBoy.

Let's swap out Merchandise Category 3, moving Merchandise Category 6 in instead.


Now that you know this, there are several things you would be willing to do, right?

  1. You feature Merchandise Category 6 items in your prospecting catalogs (you use prospecting catalogs, right?).
  2. You gladly pay more for keywords from Category 6.
  3. You pay less for keywords from Category 3.