How my savings are affected on Jet when I buy more things from it?

Jet is an e-commerce competitor to Amazon. I have been using Jet as a service for some time now and really love it. As a user, I use Jet to buy my groceries and some small ingredients daily.

What attracted me to the Jet was its free delivery for 35$ without any need for the requirement for Amazon Prime. I figured that if I can avoid the subscription cost and I can still buy my stuff, hey why not?

What really kept me hooked on to Jet was these factors

  1. No subscription and free shipping for a base amount of purchase
  2. Discounts and savings
  3. An above average customer service.

As I use Jet more and more, I wanted to find out how my savings were affected over time. What I really wanted to know was if I as a user was saving more over time or less given its dynamic pricing.

I will make a few assumptions here:

  1. I will not include any discount coupons applied as not all orders had discounts (in fact, I had applied only 1 discount coupon).
  2. I will not include any shipping discounts applied as well.
  3. I will not include taxes applied as part of my purchase as well.
  4. To normalize, all my savings will be displayed as the % of the amount I bought.

This is what I found from my own purchase behavior.

chart.png

Observations

  1. As I buy more things on Jet, my savings on Jet.com go lower.
  2. There are peaks in the savings which help keep the users hooked into making purchases.

Takeaways from this for a customer acquisition and retention strategy

  1. First time users can be discounted heavily to make sure that they try the products for the first time.
  2. To build retention loops, the next few subsequent products can be discounted more than the first time so that users return to use their products in the hopes of gaining more values.
  3. As the users get used to the product, discounts can be reduced to recover the costs that were initially spent to acquire users.

 

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