Point of market entry: How understanding your POME products can drive consumer long-term value

Why first impressions matter in commerce

Every shopper begins their relationship with a brand somewhere. For some consumers, it might be the moisturizer that introduces them to your entire skincare line. For others, it's the entry-level appliance that eventually leads to outfitting their entire kitchen.

These first purchases (which are always tied to a specific product)—what we call point of market entry (POME) products—deserve more strategic attention than they typically receive. They're not just random initial transactions, they're the gateway to consumer relationships that could span years and encompass dozens of future purchases.

What exactly is POME?

Point of market entry refers to the first product that a consumer purchases from your brand. Think of it as your brand's first impression—the initial experience that shapes how consumers perceive your value proposition, quality, and relevance.

Historically, brands had limited visibility into their true POME products. The data simply wasn't available to track consumer journeys from their beginning across multiple years. But with advanced retail data capabilities, particularly the five-year purchase history now available in the Amazon Marketing Cloud, brands can see which products most effectively bring new consumers into their ecosystem.

Why POME analysis changes the game

Understanding your POME products reveals crucial insights that ROAS or basic new-to-brand metrics miss:

• Not all new consumers are created equal: Some POME products attract one-and-done shoppers, while others bring in consumers with higher lifetime value potential

• Product relationships matter: Your portfolio likely contains natural progression patterns. Consumers who start with product A are more likely to purchase products B, C, and D

• Entry points evolve over time: The products that effectively attracted new consumers three years ago may not be the same ones working today

• Promotion impact varies: Some promotions might drive impressive new-to-brand numbers but attract primarily deal-seekers rather than relationship-builders

Rethinking acquisition through the POME lens

When brands identify their strongest POME products (those that not only attract new consumers but set them on a path to loyalty), they can transform their acquisition strategy by:

• Prioritizing investments in true relationship-starting products, not just those with the highest conversion rates
• Differentiating marketing messaging for products that serve as entry points versus those that appeal to existing consumers
• Designing product experiences that ensure first-time buyers have an exceptional introduction to your brand
• Creating intentional next-step journeys after initial purchases to guide new consumers toward complementary products and brand loyalty

Calculating long-term value from POME insights

A POME analysis doesn’t just provide insights on the first transaction a consumer makes with your brand. It also helps reveal the long-term value of consumers based on their entry product. Let's look at a real example:

A skincare brand sells both a 36-count pimple patch pack ($15) and a 72-count pack ($30). Initially, it would be tempting to focus advertising on the larger pack to drive higher ROAS. However, a POME analysis revealed that the 36-count pack was overwhelmingly the product that new consumers entered with and tried out.

More importantly, by following these consumers over time, we discovered that approximately 10% of consumers who started with the smaller pack eventually traded up to the larger pack. This insight completely transformed how the brand valued their entry product:

• Initial perception: Consumer value = $15 (just the entry product)

• Reality after a POME analysis: Consumer value = $45 for those who trade up ($45 initial purchase + $30 second purchase)

This isn't just an academic exercise, it's a concrete way to calculate measurable long-term value at the consumer level.  

When applied systematically, this approach allows you to calculate a specific LTV ratio for each segment of your business. For example, if consumers who enter through a specific product category generate an average of $100 in initial purchases and $50 in subsequent purchases, their total value is $150 — giving you an LTV multiplier of 1.5x the entry value.

POME isn't just limited to products

The point of market entry concept extends beyond individual SKUs. The timing, promotion, and context of first purchases all impact long-term consumer value.

For example, our analysis of multi-year purchase data for a health and wellness brand revealed striking differences in the long-term value of consumers acquired during various retail events. Consumers first purchasing from the brand during New Year New You showed higher retention rates and long-term value over three years compared to those acquired during Prime Day. This suggests that the New Year New Year shoppers purchased with intent and then continued to make purchases (increasing their long-term value, making the NTB acquisition worth it), while Prime Day attracted more deal-opportunistic consumers who purchased once and were done.

From POME to portfolio expansion

The AMC 5-year purchase data lookback window has helped us reveal fascinating paths consumers take after their POME purchase. For household goods manufacturers, we might see consumers enter with hand soap this year, add detergent and dryer sheets next year, then expand to air fresheners and storage products in year three. This changes how we value that initial acquisition—not based on a single product's margins, but on the entire portfolio journey the consumer embarks upon.

Conclusion: Building consumer relationships from day one

In today's commerce environment, brands can't afford to think in terms of isolated transactions. The true measurement of success is creating lasting, valuable consumer relationships.

By identifying which products most effectively serve as points of market entry and understanding the subsequent journeys consumers take, brands can transform their acquisition strategies to focus on long-term consumer value rather than short-term conversions.

The brands that will win are those who recognize that the first purchase isn't the finish line—it's the starting point of a relationship worth nurturing.

Want to learn how to identify your brand's most effective POME products and optimize your acquisition strategy? Let's connect.

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