Should a pet supplies store in Qatar spend on ads or retention?
Compare cost per new customer against cost per repeat order. If the first is more than three times the second — and it usually is — the next unit of budget belongs in retention, whatever the growth plan says.
Ads or retention, decided with a number
This is not an argument against advertising. It is an argument for advertising to fill a bucket that holds water, because acquisition into a store nobody returns to is a subscription to a treadmill.
Winning a customer costs money and selling to them again costs almost nothing, and most budgets are spent as though the reverse were true. For a pet supplies store in Qatar, the answer turns on one thing in particular: Pet food is the most reliably repeated purchase in retail: the bag runs out on a known schedule.
What is different about Qatar
Small, wealthy and concentrated — a store can reach most of the addressable market without a large budget.
Card payment dominates and delivery distances are short.
What is different about a pet supplies store
Discounting to grow trains people to wait for the discount. It works once.
Where a mobile app comes into it
This is the clearest case for an app of any category. TicApp built barcode reordering into Pets Lounge for exactly this.