In February 2015, Zulily’s cofounder CEO, Darrell Cavens faced an issue in his business, a Seattle-based daily deals website that catered to mothers. The more he spent to get new customers, the less he retained them. This was an entirely new issue in the business. Up to that point, the customer repeat purchase rates had been very consistent.
Cavens and his executive team had just found this undesirable dynamic and needed to solve it as soon as possible. Therefore, the question arises as to what was causing the decline in repeat purchase rates? Should Cavens resume new customer acquisition in order to return to the company's formerly higher level of growth?
PUBLICATION DATE: May 23, 2016 PRODUCT #: 516083-HCC-ENG
This is just an excerpt. This case is about SALES & MARKETING
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