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Definition – The Postal Rule

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What happens when a retailer posts the wrong price online? They hide behind the postal rule: The law states that contracts become valid once they’ve been sent through the mail. Online retailers appear to have adopted this for their terms and conditions, with the contract formed once goods are despatched, rather than at the point where a shopper pays for …

Definition – Departure Trend

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Departure Trend is any sudden unexpected event that can be used by marketers for promotion. Examples: – An unexpected warm day in Chicago in mid November might be a good time to promote high ticket items – A sudden winning streak by the Detroit Pistons might influence fans to buy more – News of lead poisoning in toys might make …

Definition – Take Rate

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The amount of people taking you up on a given offer on your site. Take rate is used to measure micro-conversions. These can include: – Newsletter subscriptions – Downloadable materials such as ebooks – Case studies – White papers – RSS subscriptions – “Add to Friend” links for social networking sites – Up-sell and cross-sell offers added to shopping cart …

Tolerance Boost

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Tolerance Boost is net change in ‘Click Tolerance’ once a customer reaches the site. For example, has a powerful video review section. So if the Click Tolerance is 7 and a browser clicks on the product video link this does not automatically drop click tolerance to 6. Depending on the customer experience at the video section click tolerance …

Click Tolerance

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Click Tolerance is the number of clicks a user is willing to invest on your site before abandonment. This number varies by site, brand, product price point, retailer type (multichannel or not), customer segment etc. The quick and dirty formula to derive your website’s ‘Click Tolerance’ is: Click Tolerance = [(Total number of clicks on site) – (total number of …

Definition – Adoption Latency

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This is the exact opposite of defection latency. This applies to eCommerce retailers that roll out new features or widgets on their site. It takes time before customers completely understand how to use a new widget so even though they might find it very useful there is a delay in permanent behavior change.

Definition – Defection Latency

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I shop for movies at Blockbuster only.  I am fully aware of Netflix and have heard great things about it, plus I hate the Blockbuster store experience and yet I only shop there.  This is what we call defection latency.  1 bad experience isn’t enough for me to leave, neither is 12 but at some point after that I will …