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To: StaggerLee who wrote (837)2/27/1998 11:30:00 AM
From: Jody Ritchie  Read Replies (1) | Respond to of 4903
 
Forgive me if I'm wrong, but...

I seem to remember that last quarter there were 250,000 registered members. Even if that isn't correct, let's just close our eyes and pretend. Now, 75% of the business was from repeats and 25% was new. With 250K current members, that means the new customers, for last quarter, numbered about 60,000. Added to that is the fact that about 180,000 people liked it enough to participate again. A 25% growth in customer base seems pretty good to me, but I don't have a business degree.

Again, maybe I'm way off base. Since I don't have any of my money in this stock, I didn't take the time to research the actual numbers.

Jody



To: StaggerLee who wrote (837)2/27/1998 1:23:00 PM
From: Chucky  Read Replies (1) | Respond to of 4903
 
Mr. Lee,
What conclusion can be drawn solely from the relative mix of
repeat vs. non-repeat business percentage each quarter aside
from some sort of satisfaction by customers?

You do have a point regarding "market is more concerned with
percentage moves" but I don't see how it relates to the
relative mix number. If you were a company, where would you
like this number?

If the number of repeats was 0% of business this next quarter,
can you make any conclusions regarding how much the business grew?
Therefore, the relative change in each, the number of repeat as
well as new business is important.

And by the way, regarding, "Any estimate of how many decades it will
take for revenues to double, if 90% of their customers are repeat?"
It depends on time frame you are looking at.

On the high end, the numbers could theoretically grow
~11% per day, because each new customer could become a repeat customer
the next and therefore qualify as a repeat. On any day you
would still have 90% of the customers as repeat. At that rate
does a week sound about right? Without other growth numbers or
absolutes, this relative mix number can only be a measure
satisfaction with the service.

By the way, where did the 75% number come from and what does it
include. There seems to be a number of interpretations. Can
someone point me to the source or is it this?
biz.yahoo.com

Later
Chucky



To: StaggerLee who wrote (837)2/27/1998 9:57:00 PM
From: Richard G. Woodland  Read Replies (2) | Respond to of 4903
 
I think you will agree that we are all 90% repeat customers of the following:
Home Depot
Gillette
Microsoft
Intel

If you were ever in sales, you would have a better understanding the importance of a repeat customer. Do you know how many people have become repeat customers because a repeat customer showed them the light? Many people seem to think that generating 100mm in sales is something easily achieved or copied. I can create a Web site, I can put stuff for sale on that site,but get a couple of hundred thousand people to send me their credit card info I can't do.

IMHO