E Commerce Product Vertical Integration

E-Commerce Product Vertical Integration

The simplest way to improve the LTV of a customer journey is to sell that customer a product that they are furthers their journey. E-Commerce vertical integration is a business principle built on the model of selling the same customer complimentary products. Nearly every household brand in the world has embraced this, and yet far too many small businesses are still effectively a product with a marketing team. From $5 food brands to car companies, clothing & education, insurance and real estate even.

Here are a few examples:
Apple has the iPhone & AirPods to go with it
Car dealers sell you a car & do the repairs
Insurance companies offer life & home insurance
Netflix, Spotify & Amazon Prime all charge you monthly
These are all examples of LTV lifts after the 1st purchase

We can ask ourselves:
What is the most commonly sold product by people who buy more than once?
How does one product you offer compliment the customer experience with another?
The easiest way to do this research for your brand is search Amazon and see what products they suggest in "Frequently bought together" section & to see what bundles your competitors offer.


Resources:
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