tag:blogger.com,1999:blog-32202893.post7920823413464384223..comments2019-06-01T11:18:34.003-07:00Comments on Kevin Hillstrom: MineThatData: Dear Catalog CEOs: Prices Influence Future BehaviorUnknownnoreply@blogger.comBlogger3125tag:blogger.com,1999:blog-32202893.post-69515343509266597222010-12-27T06:20:06.801-08:002010-12-27T06:20:06.801-08:001 - For the average e-commerce business, yes, this...1 - For the average e-commerce business, yes, this holds. There are businesses that sell big-ticket and small-ticket items where M becomes more important, but overall, yes.<br /><br />2 - There's a scale here ... it isn't always a 1-to-1 relationship where an order that is 2x as big yields 2x future value, but yes, there is some sort of scale where a 2x order yields an increase.MineThatDatahttps://www.blogger.com/profile/14014200122021988374noreply@blogger.comtag:blogger.com,1999:blog-32202893.post-57034979786771839132010-12-27T06:04:13.084-08:002010-12-27T06:04:13.084-08:00I was wrong to write "write" when I mean...I was wrong to write "write" when I meant "right" :-)George Michiehttp://www.rkgblog.comnoreply@blogger.comtag:blogger.com,1999:blog-32202893.post-60045160556978735932010-12-27T06:02:40.854-08:002010-12-27T06:02:40.854-08:00This is a great point, Kevin. I'm going to ri...This is a great point, Kevin. I'm going to riff a bit on it over on RKGBlog -- citing you, of course.<br /><br />Two questions for you:<br /><br />1. Am I write that of the big three, R, F and M, R is the most predictive and M the least though still significant?<br /><br />2. Any rules of thumb on customer value as a function of first purchase price. If A's first purchase is twice as valuable as B's can we say that A is sqrt 2 times as valuable as B, or some other mathematical rule of thumb?George Michiehttp://www.rkgblog.comnoreply@blogger.com