How DTC Brands Can Estimate True Price Elasticity
Last week, we explored how excessive discounting might be training your customers to wait for your next promotion. Certainly, an occasional discount can help an otherwise undecided customer pull the trigger. But how do brands know whether discounts actually work? And how can you know whether you can safely raise prices without making sales drop precipitously? That’s where price elasticity
Why Discounting Trains Customers to Wait for Sales
You just ran a 20% off promotion and sales spiked handsomely, especially among your regular customers. But then prices go back to normal. And you notice even your faithful customers are overdue for another order. You run another promotion. And those customers are back in full force, driving sales up. Then the promotion ends. And those customers? Crickets. Meanwhile, your
Increase AOV with Market Basket Analysis
With customer acquisition cost (CAC) rising so rapidly, marketers are increasingly under pressure to extract more value per customer. They’ve long known that the key to driving customer lifetime value (LTV) was through upselling and cross-selling. But maximizing LTV isn’t simply trying to sell an existing customer any one of your other products. Instead, you need to understand what items