What The Customer Purchases Matters

Ok, back to our 18 month 1x buyer ... here, I filter for customers who bought only one (1) item in that first order, and then have not purchased for the subsequent eighteen months. I measure annual repurchase rates based on the Merchandise Category the customer bought from.

By Category:

• Category 00 = 1.85%.
• Category 01 = 4.14%.
• Category 02 = 3.50%.
• Category 03 = 3.92%.
• Category 04 = 4.63%.
• Category 05 = 5.43%.
• Category 06 = 4.84%.
• Category 07 = 6.41%.
• Category 08 = 2.13%.
• Category 09 = 2.49%.
• Category 10 = 3.47%.
• Category 11 = 3.15%.
• Category 12 = 3.02%.
• Category 13 = 2.13%.
• Category 14 = 3.06%.
• Category 15 = 3.37%.
• Category 16 = 2.99%.
  
• Category 17 = 4.76%.
• Average = 4.03%.

There are a handful of categories that cause problems ... 00, 08, 09, 13, 16. First-time buyers who purchase from those categories and then lapse tend to repurchase in the future at low rates. Going forward, you'd likely pay less for keywords associated with those categories, correct? You want fewer of those customers at a high cost, more of them at a low cost.

Ok, we've stacked a lot of wins on top of each other, with more to come.