Friday, March 15, 2013

The riddle of the regular customer

It's something I muse over regularly. As I see the old guys at a coffee shop every day with their glass of water and their single cup of coffee I think about the idea of lifetime value.

But when I look at the Negative Binomial Distribution of customer purchase rates I know that - on a macro basis - the majority of volume that a business does is done with customers who may drop in once a month or even less frequently.

I still love the idea of taking care of the customer, but there is also the reality of "every customer matters"

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