Strangely enough, many advertisers don’t have that answer ready when you then ask how often an average customer buys again. Or what this customer spends on average over a period of 3 years. That is actually strange, because that is precisely the metric that is of vital importance. It is in many cases the reason why major players can spend a lot more on the acquisition costs of a new customer. If you have strongly optimized the number of repeat purchases. This is a different starting point than companies that have to make their margin right on the first order. Make sure the data is clear Because it is often not even measured properly, it is not controlled on a daily basis and few experiments take place in this area.
Which You Can Still Outsmart
It is therefore important to first ensure that this data is clear. In this way you build a good basis with which you can still outsmart other parties. For example, the number of ads that. Google shows has only decreased in recent years (due to mobile, among other things), increasing the price pressure on those ads. A development that only increases Tanzania B2B List the importance of retention. The margin of 1 identical order often does not differ very much in the case of retailers, but if the customer orders 5 times more from the competitor over a period of a year, the differences suddenly become very large. Thanks to smart retention programs from Amazon and Bol.com, they compete with other parties, because they are able to retain customers for longer and therefore simply spend a lot more marketing money.
You Can Still Outsmart
The oldest – and often least flexible – model is that of hotels and car manufacturers. Another is the advisory model , which includes consultancy firms, for example. In addition, you have asset light models. The pre-investments for one version are very large, but then it costs almost nothing more, as with Microsoft and Salesforce. Finally, you have the network orchestration model , with platforms such as Amazon, Booking.com, Uber and Facebook. If you look at where value has been created within the Fortune 500, for example, over the past twenty years, it consists of about 20 percent asset light models and about 80 percent (!) from network orchestration. That is of course not for nothing. The network effects and economies of scale of platforms are so great that platforms will no doubt further expand their positions in the coming years.