June 27, 2018

AOV and LTV

In my lifetime value work, there are two consistent themes related to lifetime value.

  1. Larger first orders = Better lifetime value.
  2. More items in a first order = Larger first orders = Better lifetime value.
Interestingly, any time a human being touches a first order you'll see larger AOVs ... which lead to bigger/better LTV. So where it is reasonable and cost-effective, get a human involved in a first purchase, even if it means that a human is following-up to see if a first order met customer expectations.

But if a human can't be part of the first-order process, use #technology to cross-sell the customer so that the customer adds an item to a first order, ok?

Page Counts When Bifurcation Hurts All Other Customers

Yesterday we talked about the fact that best catalog customers (a minority of your file) deserve MANY catalogs that are merchandised with...