When you look at first-time buyers, there are certain attributes that lead to "development". Not all first-time buyers are created equally. Few first-time buyers repurchase, and those that do are unlikely to ever become loyal buyers. Instead of having Loyalty Programs, we really should have Development Programs.
If we had Development Programs, we'd focus on the following customers.
Units: Customers who buy multiple items are better Development candidates than are customers who buy a single item in a first order.
Price: Customers who buy 2 items at $30 each are typically better than are customers who buy 2 items at $20 each.
Categories: Customers who buy 2 items from 2 product/merchandise categories are typically better Development candidates than are customers buying 2 items from 1 category.
Channels: There are always 2-3 marketing channels that yield better Development candidates than all of the other marketing channels. The channels are different for everybody.
Time: Acquire a customer in December? Yeah, it's easy and profitable, but those are customers who do not want to be Developed. You'll just sit there wasting money on them the rest of the year. If you really want a customer that can be Developed, focus on acquiring customers in September/October if your business has high Christmas seasonality. Why? You get to double-dip the customer (move the customer to a second purchase) at the very time when the customer is most responsive.
- Yeah, you should take full advantage of this "tidbit" in your Fall 2021 planning.
- Yeah, not that many people choose to take advantage of this "tidbit".
- Analyze this dynamic.