Attributes That Matter

Many different customers rise into the top decile in our example. The customers don't all have the same attributes.

One of the customers spent just $57, but bought from a merchandise category / channel that the models see as favorable.

One customer spent $353.88 on five items, buying in May from favorable categories at a discount.

One customer spent $243.85 on seven items, buying in May from favorable categories at full price.

There are many paths to a "quality" first purchase. Look for the attributes that lead to quality newbies and then exaggerate them where possible. If one merchandise category constantly delivers high-value customers, why wouldn't you be willing to pay more for search terms that align with that category? If one marketing channel constantly delivers high-value customers, why wouldn't you be willing to pay more for customers in that channel?

Similarly, there are attributes that deliver low value customers. One customer spent $39 on Amazon, one item. That customer had virtually no future value. If you can make some profit on the $39 purchase, by all means have at it. But there is no rule that says you have to bother with that customer going forward, right? No rule. You make the rules. Be smart.

Another customer spent $179.99 on five items ... but they were from a merchandise category that doesn't lend itself to repurchase activity and came in via an affiliate. Those customers have minimal future value. Personalize the website and recognize that customer - if the customer visits again, try to cross-sell the customer into categories that lead to higher value customers. Don't use expensive marketing channels to convert the customer, it's not worth it.

You do this stuff now, don't you? Of course you do. So take it a step further. Use the attributes that matter to focus your business on higher value customers.