So some of the specific examples might be in areas of account creation, payments, our content platform, our CRM mechanisms or we’ve talked about, which I will discuss more in detail at our next earnings call. But we’re super excited to talk to you about Chewy loyalty, which we’re progressing for an early 2024 launch. So we’re not we’re not sitting idle, waiting for the macro to recover, right. It’s just this notion of what cannot be cured has to be endured. So we’re going to endure that and at the same time, everything that is controllable on our side, which is improving experience and opening up new avenues to acquire and retain customers, we are absolutely focused on that. And then your second question was with the more recent cohorts, what are you seeing on repeat order frequency?
We’re seeing the repeat order frequency that – it’s essentially what I was mentioning earlier. Autoship penetration actually is fairly intact. Their basket sizes are slightly lowered because they’re more value speaking. So, obviously, there is an ASP compression that is taking place there. Their attach rates are slightly lower. So the units per order metric is where you will see that impact, which ultimately goes back and kind of talk to the basket size also. Repeat order frequency, they need a little more nudge relative to our kind of loyal customer bases. So we’re just – we’re watching right now. And that we’ve essentially baked that into the guidance and we’re baking that into the active customer ads forecast as well.
Lee Horowitz: Very helpful. Thank you.
Sumit Singh: Sure.
Operator: Thank you, Mr. Horowitz. Our next question is from Steven Forbes with Guggenheim. You may proceed.
Steven Forbes: Good evening, Sumit, Stacy. Just two quick follow ups, one on Autoship and one on pharmacy. So first on Autoship, Sumit. Can you comment on how the average number net ownership ordered by customer within some of your more mature cohorts are trending, relative to plan? And then on pharmacy, can you also talk about like how the customer journey for pharmacy customers has evolved over the years such as time to trial, usage statistics, Autoship adoption in maybe most importantly churn rate right among those customers that try and convert into pharmacy earlier in the lifecycle?
Sumit Singh: Sure. I may not be able to satisfy your full curiosity relative to some of the metrics that you’re asking, but I’ll build your intuition generally in stating that. Autoship continues to be more powerful in a way that it is accreting value for customers and passing that value onto customers. We’ve done that by making sure that the assortment under Autoship is maximized. We’ve also done that by making sure that barriers to either Autoship conversion or Autoship retention, whether there may be payments related or whether there may be attach related have continued to be lowered. Our improvement in segmentation and targeting ability does allow us to speak with customers a little more meaningfully and that’ll only get better in the future.
And then from a cohort development point-of-view, we’ve invested across our kind of discoverability and attach engine to make sure that customers not only discover complementary attached products, but are essentially attaching through them in a meaningful manner. So all of this is essentially, leading to the incremental Autoship sales that you’re looking at. Autoship, the beauty of Autoship is, it is a very flexible program and customers trust that they won’t – they both trust the flexibility and they have come to trust and reliability that we put behind Autoship. And so it’s a high-value program from that point-of-view, not, only from a pricing point-of-view, but also from an overall experience point-of-view. On the Rx side, this is the, we believe we have the best healthcare experience that e-commerce can offer or that customers can find in the best of kind of retailers out there per se.
So our metrics on pharmacy, our adoption – Autoship adoption is even higher in pharmacy than it is in some of our other merged classes. Our churn rate is lower, given how high a bar we have. And at the same time, we always have opportunity that we’re working on to make sure that we get even better with products like these. Overall, we’re excited about this vertical.
