| The re-engagement models listed seem glamorous and certainly are the current hot buzz. But, I doubt I'd call them sustainable. An established $40m company might try some of these, but should not rely on them as a core business model. Incorporate flash sales as a daily deal feature, creating re-engagement and perhaps pushing lesser known or tough to sell products. I'd even argue that scarcity is good for a quick grab, but might be a turnoff for regular customers of a site that isn't focused solely on flash sales. Subscriptions are a slippery slope for physical goods as well. You have to be careful to provide the customer with enough perceived value, while enforcing the notion that the value will be the same every month. At the same time, you can't strain your inventory or infrastructure to maintain the regular flow of these products. Loyalty programs are probably the oldest, and safest trick in the book. Often times, can be done for free. Perhaps purchases earn points which are only redeemable on products you specify. Could help move problem inventory while saving a few points in payment processing fees. One should tread carefully with all these options. Like the author mentions, there's plenty of room for innovation in this space. It's possible that the $40m company is king of it's niche hill. If that's the case, they might look at leveraging their experience and infrastructure in other markets. All the while, working to keep the core business sustainable. |