A skincare brand on Amazon has increasing site traffic and new customer sales, but declining customer lifetime value and product ratings. Which metrics would best inform changes to their strategy?
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Correct answer: Repeat purchase rate and review count.
Why this is the answer
Declining customer lifetime value points to a loyalty issue because customers are not generating enough long-term value after acquisition. Falling product ratings also signal weaker post-purchase satisfaction or customer experience. Metrics tied to repeat buying and customer feedback are the most relevant for diagnosing retention and product experience problems. The strategy should focus on improving post-purchase engagement and satisfaction rather than only increasing traffic or acquisition.
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