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Study: Discounts are poor initial purchase incentive


Cambridge, Mass. — New customers whose first transaction involves a discount or special offer are 50% less likely to return to make a second purchase. According to a new study from loyalty technology provider Coherent Path Inc., customers who visit an e-commerce site for the first time and make a purchase at full-price are more than twice as likely to make a second visit.

Furthermore, these returning customers will spend 150% more per visit compared to those who are initially motivated by a sale. During the lifetime of the relationship, a customer whose first interaction with a retailer does not involve a discount is worth at least 2.5 times more than a customer who responds to a short-term discount or promotion.
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