April 17, 2008

Free Spreadsheet: Calculating The Multichannel Purchase Index (MPI)

Why calculate something by hand when somebody can create a free spreadsheet for you?!

Download the Multichannel Purchase Index (MPI) Calculation Worksheet Here.

I spent some time modeling a three-channel relationship, which is included in the spreadsheet. The spreadsheet will only work if you manage two or three physical channels. If you have more than three channels, it is perfectly acceptable to modify your query to analyze a subset of channels.

The spreadsheet gives you clear instructions about how the index is to be interpreted.
  • MPI of 0.00 to 0.99 = You have multiple channels, but your customers do not generally shop multiple channels.
  • MPI of 1.00 to 1.49 = You have multiple channels, and your customers are willing to try multiple channels. You're a classic multichannel business.
  • MPI of 1.50 or Greater = You have multiple channels, and you have multichannel customers. Being "multichannel" is really important to your business.
The metric is interesting to view, when calculated for the past several years. You'll quickly see whether your customer base is becoming "more multichannel" or "less multichannel". I've witnessed fascinating changes in some of the businesses I've looked at.

Why not leave an anonymous comment, sharing with The MineThatData Blog audience your annual frequency, percentage of multichannel customers, and the MPI for your business? I'm sure our readers would like to see anonymous results.