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Why would #6 be true? Why can’t they just watch for real-time negative changes in their prime churn rate and average conversion rates, basket size, etc? Peopl
by ryanwaggoner 8y ago
Why would #6 be true?
Why can’t they just watch for real-time negative changes in their prime churn rate and average conversion rates, basket size, etc?
People have a wide spectrum of buying habits, price sensitivity, and tolerance levels for negative customer experience, so even if they are going down the toilet, it’s not like all of their userbase will one day decide at the same time to switch to Walmart.
They’ll see these trends in the data years before it becomes an existential threat. Couple that with huge amounts of feedback being collected, A/B tests being run, and third party data and I don’t see how they’ll have a growing problem that they’re unaware of because it lags sales ad revenue numbers.
- bootsz 8y agoIt might not be, I'm just going off of intuition. I think it might "lag" in the sense that the annoyances / inconveniences that get gradually introduced don't result in a linear reduction of users. I think you can get a sort of "frog in boiling water" type situation, where you're gradually getting less utility out of the product or subconsciously more annoyed with it but you don't really realize it and take action until some threshold is hit, at which point a large portion of users suddenly jump ship within a very short time window. Pure speculation though.