How to calculate Customer Lifetime Value

How to calculate Customer Lifetime Value
Customer Lifetime Value (CLV) is the profit margin a customer brings to an e-commerce business by purchasing products and services over a period of time. Knowing this value allows companies to focus their loyalty strategy on the customers who spend the most money on the brand, who will give them the highest profits. The ultimate goal is to build a strong relationship with customers, investing as little as possible in marketing and engagement. From the Customer Lifetime Value, you can adjust the... + read more



Is your e-commerce business ready for Christmas 2021?

Is your e-commerce business ready for Christmas 2021?
Christmas is a key date to increase your e-commerce sales, but you must have a proper strategy to maximise profit. You need to remember that every year Christmas sales start earlier than the year before, and that a high percentage of consumers make their purchases online. Specifically, in 2020 online sales increased 50% worldwide during December. In addition, possible supply and demand problems are expected to affect the 2021 Christmas campaign. Therefore, it is vital to get your e-commerce... + read more



What is the ideal size of an Amazon catalogue?

What is the ideal size of an Amazon catalogue?
Deciding your catalogue size as an Amazon seller is key to your e-commerce business profitability, both within and outside this sales channel. This decision must therefore be well-thought through and defined by the company's overall sales strategy. You need to weigh up the pros and cons of publishing your entire catalogue. You may decide to publish a large volume of products, or just higher sales volume generating products, or those that meet a strategic business objective. Also, your... + read more



What is the decoy effect, and how to use it

decoy effect
The decoy effect is a phenomenon in which consumers tend to change their purchasing preferences when presented with a third choice. In other words, the customer is clear that they prefer cheaper option A, over the more expensive B. However, they usually change their mind when a third option appears between the two. Neuromarketing studies have found this effect to be one of the most influential cognitive biases to apply in an e-commerce business. We explain how it works using several key... + read more



What are customary prices? Here are some examples

Customary prices are the prices that consumers are used to paying for certain products or services over a long period of time. These prices are known to all customers, and they do not expect them to change. With this knowledge, e-commerce businesses can carry out a detailed market study. They can then choose to follow a customary pricing policy with the products or services that lend themselves to it. You can integrate these customary prices into your overall pricing strategy to aim to achieve... + read more



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