In a recent query, I used a logistic regression equation to measure multiple-division buyers. Are these buyers more likely to purchase again compared to other buyers?
- 0-12 Month One Time Buyers = +27% more likely to purchase again.
- 0-12 Month Two Time Buyers = +10% more likely to purchase again.
- 0-12 Month 3x+ Buyers = +3% more likely to purchase again.
In other words, each incremental division purchased from adds 27% / 10% / 3% to the probability of a customer buying again in the next year. If a three-time-plus buyer previously purchased from four divisions instead of one, the customer would have a 3%*3 = 9% greater chance of buying again in the future.
So yeah, cross-shopping your customers matters - especially among first-time buyers.
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