March 16, 2021

A Common Customer Development Trend

Since about June 2020, clients have been asking me a simple question:

  • "Will all of these new COVID-fueled customers convert at the same rate that comparable pre-COVID customers converted?"
When I model future buying activity among new buyers, the number of items purchased in a first order and the number of merchandise categories purchased from play a key role in determining future value.

Would you rather acquire a customer buying 3 items from 3 categories (30.2% rebuy rate) or a customer buying 1 items from 1 category (20.8% rebuy rate)?

This is where the fusion of marketing brilliance and merchandising talent intersect. It is so darn important to encourage a customer to buy "multiples" in a first order.

In my Customer Development projects, I create a Welcome Model designed to identify who is most likely to purchase in the next year. The models adore "multiples", which means that a "one-and-done" customer might be profitably acquired, but you haven't built a framework for Developing Customers.

If you want a Loyal customer in two years, get your prospect(s) to buy "multiples" on a first order.

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