September 07, 2022

Acquired via Discount

Here’s what I see in a typical project:

Customer acquired via discount/promo = more likely to purchase in the future, much more likely to buy via discounts in the future, less profitable in the future unless the response increase is greater than 30%ish.

Customer acquired via full price tends to be less responsive and more profitable in the future.

You get to pick the business model you want and the customers you want. You get to decide how profitable you want to be in the future. The choices you make today dictate how you’ll behave next year and beyond.

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