"Custora's research shows that stores on average lose roughly 1.75% of revenue every year due to unsubscribes."
This is remarkably similar (in amount) to loss through shrinkage at bricks and mortar stores, which is estimated at 1.7% (according to one source I bothered to find) [1] - but while retailers take steps to reduce shrinkage, there is a cost/benefit balance in play and a certain amount is inevitable, maybe the same is true of unsubscribe
I'm more curious about how that 1.75% compares from other sources of lost revenue; how does it compare to the cost of processing returns, or fraud, or just basic transaction costs, &c?
Maybe it's significant, maybe it's noise, but without anything to compare it to, who knows
Maybe it's retconning loss figures to a model they already have. If they can fit online expectations to meatspace loss figures, then they don't have to change their models.
Comments
unsubscribing costs U.S. retailers about $5.8 billion per year
Utter nonsense.
/end thread
The telling part is that they say...
"Custora's research shows that stores on average lose roughly 1.75% of revenue every year due to unsubscribes."
This is remarkably similar (in amount) to loss through shrinkage at bricks and mortar stores, which is estimated at 1.7% (according to one source I bothered to find) [1] - but while retailers take steps to reduce shrinkage, there is a cost/benefit balance in play and a certain amount is inevitable, maybe the same is true of unsubscribe
I'm more curious about how that 1.75% compares from other sources of lost revenue; how does it compare to the cost of processing returns, or fraud, or just basic transaction costs, &c?
Maybe it's significant, maybe it's noise, but without anything to compare it to, who knows
[1] http://www.jrrobertssecurity.com/security-news/security-crim...
Maybe it's retconning loss figures to a model they already have. If they can fit online expectations to meatspace loss figures, then they don't have to change their models.