CPG is actually the most difficult customer equity calculation, because generally speaking, there's no contractual relationship. I can go to the store and buy whatever I want. Whereas when it comes to, let's say, a bank or an insurance company and I'm sort of locked into my that relationship for at least some time. And especially when they're when there's a contract that I must stay for five years, for example. So in CPG, you obviously look at the degree to which you get repeat purchases, which can be high or low. Repeat purchases can be high, if your product is on sale. And then you can create loyalty, but you're going to have to pay for it in the form of lower margins. But if you have a strong brand and you don't need to rely on promotions to create loyalty - then, the numbers are going to be high.
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CPG is actually the most
CPG is actually the most difficult customer equity calculation, because generally speaking, there's no contractual relationship. I can go to the store and buy whatever I want. Whereas when it comes to, let's say, a bank or an insurance company and I'm sort of locked into my that relationship for at least some time. And especially when they're when there's a contract that I must stay for five years, for example. So in CPG, you obviously look at the degree to which you get repeat purchases, which can be high or low. Repeat purchases can be high, if your product is on sale. And then you can create loyalty, but you're going to have to pay for it in the form of lower margins. But if you have a strong brand and you don't need to rely on promotions to create loyalty - then, the numbers are going to be high.
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