One of the offshoots of Merchandise Lifetime Value is measuring annual repurchase rates of customers who bought specific products/merchandise.
Why do we do this?
We want to understand the products/merchandise that cause customers to purchase again in the future, after controlling for historical spend at a customer level.
It turns out that there are many items that are so good and so appreciated that they cause customers to be more likely to buy in the future.
One of those items are gift cards.
Customers who are willing to spend their own money to give to another individual to buy from your brand are customers worth paying attention to.
Segment your customer file by gift card buyers (yes/no), and then measure what gift card buyers do in the future.
P.S.: I'm old enough to remember when "Interactive Mailpiece Engagement" was simply known as "reading" (click here).
P.S.: I'm old enough to remember when "Interactive Mailpiece Engagement" was simply known as "reading" (click here).
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