Priorities

In an ideal world, businesses would optimize for all success-relevant metrics. However, oftentimes, businesses must choose to prioritize one over the other. These seemingly minute decisions actually have a significant impact.

Amazon

Amazon tries to emphasize a strong conversion rate. They do this by making it as quick and convenient as possible to purchase items, removing any possible frustrations that may lead to a lost sale. While this strategy has significant upside, because it requires fewer steps, it can be hard for Amazon to integrate an elaborate upsell experience. I think that Amazon made the correct choice to prioritize the speed/quantity of the checkout process rather than trying to get more money per checkout because the typical customer on Amazon is there for convenience.

Warby Parker

Unlike Amazon, Warby Parker optimizes for lifetime customer value. In order to increase this metric, Warby Parker employs techniques that build customer trust and loyalty. This means that when a customer needs to buy a new pair of glasses, they will go back to Warby Parker instead of another company because they feel confident that they are going to be getting a good product. They market towards premium customers, upon whom they can extract more money out of per order by upselling. One downside of this is that it can increase friction through the checkout process, deterring possible customers.

Patagonia

Patagonia is similar to Warby Parker in the sense that they try harder to connect with the customer, increasing the lifetime customer value. However, they do this by creating a powerful narrative around the brand, enticing customers who resonate with the story. This value alignment can be an extremely powerful marketing tool when executed. The main negative to this approach is that it can alienate individuals based on opposing perspectives.