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Core Product Revenue vs. Ancillary Revenue

We’ve been talking a lot about ancillary revenue in previous posts. What is the difference between ancillary revenue and core product revenue? Here’s a quick overview.

Core product margin is the operating profit percentage on the product most associated with the retailer. In the case of an airline, this would be the margin on a plane

By |September 11th, 2013|Article, Blog|Comments Off on Core Product Revenue vs. Ancillary Revenue

The Three E’s – Enable, Enhance, Ensure

In my last post on 8/8/13 I pointed out that Amazon doesn’t optimize for percentage margin. That’s significant because it allows Amazon to lower prices as far as they want. But if we examine the bottom line of digital retailers, they appear to be healthy. How is it possible to remain profitable in a market

By |August 26th, 2013|Article, Blog|Comments Off on The Three E’s – Enable, Enhance, Ensure

Pricing Pressure, Multi-Screening and Testing

Search and social media exert a tremendous downward pressure on primary product pricing, as we’ve discussed previously, by making it much easier for customers to compare pricing across retailers, both online and off. But there’s another aspect of the social age that should be a cause for concern for online retailers: Multi-Screening.

According to a Google

By |July 1st, 2013|Blog|Comments Off on Pricing Pressure, Multi-Screening and Testing

Analytics for Mobile: do we need a new strategy?

If you’re doing business online, the pressure to attract, convert and retain customers is already substantial. The rise in optimization as a “core competency for digital marketers” is the outcome of increasingly fierce online competition and price pressure in almost every category. Mobile raises the stakes further. Your existing analytics may need some adjustment to

By |June 24th, 2013|Article, Blog|Comments Off on Analytics for Mobile: do we need a new strategy?
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