September 27, 2011

Merchandise or Channels?

I recently conducted a study for a company. The results should be of interest to you.
  • After controlling for purchase frequency, each additional merchandise division a customer purchased from was worth ten times as much as each channel the customer purchased from.
Nobody in the marketing world publishes this type of information.

This is not uncommon, folks.  The range of benefit changes (sometimes 2x as important, sometimes 10x as important, sometimes 25x as important).  Still, the following holds true:
  • Merchandise is usually more important than Channels
Go do something positive with this fact!

2 comments:

  1. Hey Kevin - how finitely do you define merchandise channel, in your experience? Is it apparel vs. hardgoods? Men's apparel vs. women's apparel? Men's pants vs. men's outerwear? How different does the merchandise need to be to drive the increases you see?

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  2. Typically, you will see the increases I mention if each merchandise division accounts for +/- 10% to 15% of annual net sales.

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