Publications
Publications
- May 2016 (Revised January 2018)
- HBS Case Collection
Improving Repurchase Rates at zulily
By: Thales Teixeira and Sarah McAra
Abstract
In February 2015, zulily cofounder and CEO Darrell Cavens faced a major challenge in his business, a Seattle-based daily deals site that catered to moms. The more he spent to acquire new customers, the less he retained them in the form of repeat purchases. This was an entirely new conundrum in the company. Up to that point, customer repeat purchase rates had been incredibly consistent. Cavens and his executive team had just discovered this adverse dynamic and needed to resolve it as soon as possible. What was causing the decline in repeat purchase rates? How should Cavens resume new customer acquisition in order to return to the company's previously higher level of growth?
Keywords
Zulily; Repurchase; E-commerce; Online Shopping; Fashion; Customer Relationship Management; Internet and the Web; Digital Marketing; Customer Satisfaction; Fashion Industry; Retail Industry; Seattle
Citation
Teixeira, Thales, and Sarah McAra. "Improving Repurchase Rates at zulily." Harvard Business School Case 516-083, May 2016. (Revised January 2018.)