In the past two weeks, the US has seen a slow but steady decline in AOV across retail brands selling online. Our thoughts here are two-fold.
First, there are many brands out there, given the circumstances, that have resorted to discounting in order to get customers to make their first purchase, but yet, haven’t necessarily made a valiant effort to keep those customers long-term.
Second, brands are struggling to understand which of these new customers are valuable, and how to retarget them accordingly. Sure, a lot of these new customers will be “one-and-done” purchasers due to the discounting, but brands must understand how to identify those customers who are coming back to the site, browsing, engaging, and ultimately showing intent to purchase again.