You have two merchandise lines that exhibit curious behavior.
Merchandise Line #1: Traffic is driven to the online channel from paid and natural search. Customers gobble up high margin merchandise, making the merchandise line one of your best sellers. There's only one problem ... these customers don't re-order from your business, implying that these customers have poor lifetime value.
Merchandise Line #2: Traffic comes from all advertising sources. Customers like this merchandise line at an average rate, and have an above-average repurchase rate, which implies that these customers have outstanding lifetime value.
You have money to spend on online advertising today, and your business is running below last year's sales levels ... not a good sign when managing an e-commerce business. Which merchandise line do you invest in?
Maybe you are already running reports that illustrate the purchase composition of the customers who buy each item you offer. I've seen several interesting iterations of this style of reporting. It's always a good idea to know if loyal customers, infrequent customers, or newbies are buying your merchandise ... and it's always a good idea to track the lifetime value of the customers each item draws into the business.
Helping CEOs Understand How Customers Interact With Advertising, Products, Brands, and Channels
April 02, 2008
Brand Or Merchandise Loyalty In An E-Commerce Business
Subscribe to: Post Comments (Atom)
The Customer Has No Value
Back in the days when clients paid money to have you on campus, there were times when a CEO or Marketing Executive just wanted to "touc...
It is time to find a few smart individuals in the world of e-mail analytics and data mining! And honestly, what follows is a dataset that y...
Sometimes you think "people already know this stuff". Sometimes you realize that Google Analytics give smart analysts almost no op...
If you want to understand why clients don't trust vendors and trade journalists, read this little peach from a week ago: Direct Mail is ...
Post a Comment
Note: Only a member of this blog may post a comment.