31% conversion rate? That seems very high to me -- is this just in the bridal niche?
Also, the LTV is 5-7x the CCA, which it says is 0.55, so that means the LTV is about $3 ? That seems very low given their market. I wonder if they are counting "converted" as something other than "sold a product."
Their advertising costs are low too, wedding related keywords are more expensive than $0.17 and even on Facebook. A lot of retailers have got savy to the fact Facebook lets you target people who are engaged.
I suspect they've counted "converted" as "entered an email address" or "signed up". That would then explain the long-term value: lots of value from a fraction of customers, and zero value from the rest.
Alternatively, given prices like those they put on the big price tag on the "Problems / Solutions" slide ($150), $3 sounds about right for the affiliate/kickback benefit they'd get from the retailer.
Ah, that's the "AppSumo" part of it, then. I assumed that since they had a "Buyer" in the core staff that it was more like Woot! where they'd have inventory themselves, but it looks like you are right.
I think Woot has a buyer too. Buyer, in retail, means more than the person who pays, it means the person who finds the products, makes sure they're up to the standards of their brand, looks for the best deals on the good, sources the deals, generates the PO, etc.
Also, the LTV is 5-7x the CCA, which it says is 0.55, so that means the LTV is about $3 ? That seems very low given their market. I wonder if they are counting "converted" as something other than "sold a product."