Amazon discussed on Scientific Sense

Automatic TRANSCRIPT

That probably would be dogged. So. So just to my understanding regular. So you say only one third of the effect on customer purchases is due to the economic benefits. The customers making an economic decision and yes, is just add to them becoming a member. Very the point and so couplings we wanted to also look at. So for example, take any program Amazon as an example or even this company that the one that we worked with many of these programs are not just simply about economic benefits. Yes. Get it obviously the part of the program. Getting program, it's about you know kind of taking your customers that you were interacting with before and perhaps giving them a more exclusive set off course. So what you want your current customers to feel like is not just a got a good deal so to speak, but they're part of an exclusive club. There's something intangible something more psychological, and so what we wanted to see was off the totally in fact, we just discussed which is the true impact causal impact program. Before the. It, how much of that would be because of simply getting better prices better do so to speak right and how much is remaining, which perhaps cannot be explained by changes in prices. But. Then he might be because of the structure of the program. Let me give you one example in this example or in this which is true for many many programs as well is one interesting feature. This was that and this is of course. Inducing product with this company is that they basically said, why don't you pay fifty dollars up front? To become a member. And we give you, back to dollar gift card. Interesting and you might wonder like why do that? It's like give fifty dollars gift dollars in some sense it's kind of. Like. It's like a little bit surprising but if you think about it and this is again just for your reader for your listeners, this program was in a cosmetics industry, which is very, very competitive and so what the company wanted to literally do was even though they're getting fifty dollars and they couldn't get back rescued or discard what have actually done is kind of media money non fungible. By going to buy from a company and you're saying look I want to be paid fifty dollars..

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