December 01, 2022

Items per Order

Take a look at this graph.

As the customer becomes more loyal, the customer (not shown here) orders more often. However ... however ... as the customer becomes more loyal and orders more often, the customer purchases fewer items per order.

Let's see what happens to price per item purchased.

Oh oh.

This is a signature of a brand that demands that best customers buy frequently. The company gives the customer incentives to purchase ... so the customer purchases more often, but backs off on how much the customer is willing to spend.

Loyalty advocates manage businesses that possess customer attributes similar to what we've observed this week. They discount like crazy to best customers, they get customers to buy more often, but customers purchase fewer items at a comparable price. Loyal customers are making tradeoffs ... all the time. You think you are doing good work. The customer adjusts.

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