10 Minutes To E-commerce Success

Interview Excerpt Below: "Michael: There was an interesting study done by Harvard Business School and Bain & Company a number of years ago that shows that an increase in retention of just 5% can have an impact of 25 to 90% increase on profits, and that's because it's just becoming more and more expensive to acquire a customer. It's rare in a lot of cases today with e-commerce that companies are even profitable on the first transaction with a customer. They really have to understand lifetime value and focus on the retention side of their business to be able to be profitable and by focusing on retention and improving their customer lifetime value, their average order value, their conversion rate, all of a sudden it also opens up so many new possibilities in terms of new marketing channels that were previously unaffordable because the cost to acquire that customer exceeded the value of that customer. If you can tip the scale in the other direction, all of a sudden you can aggressively scale your marketi