S2E7: BCG-Style Case Walkthrough with Experienced Hire
Strategy Simplified
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How to Improve a First Time Purchase Promotion Campaign?
The case involves a large housewares and home furnishings retailer. Despite many quick early wins as a business, growth has slowed. To combat slowing growth in the US, the company started offering aggressive price promotions on first time purchases. The purchases are sent by email but tied to a customer's phone number using two-factor authentication. In its first 12 months, the campaign has seemed like a winner. It produced very high response rates. But management is concerned because profitability has continued to decline.
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