March 26, 2013

Where Is My #Omnichannel Business Headed? Start With Channel Pairs

An awful lot of omnichannel experts seem to know what the future holds.

Fortunately, you don't have to listen to their guesses.  You have actual data, based on how your customers (not generic consumers) perform.

All you have to do is perform a weighted channel pair analysis.

Remember weighted channel pairs?

We sum weighted demand by physical channel ... for example, retail, e-commerce, tablets, and mobile.

  • Transactions 0-12 Months Ago = Demand * 1.00.
  • Transactions 13-24 Months Ago = Demand * 0.50.
  • Transactions 25-36 Months Ago = Demand * 0.25.
  • Transactions 37-48 Months Ago = Demand * 0.15.
  • Transactions 49+ Months Ago = Demand * 0.10.
Then we rank order the pairs, based on the channels that generate the most weighted demand.

Here's an example:
  • Retail 0-12 Months Ago = $100 (weighted = 100*1.00 = 100).
  • Tablets 0-12 Months Ago = $40 (weighted = 40*1.00 = 40).
  • E-Commerce 13-24 Months Ago = $180 (weighted = 180*0.50 = 90).
This customer possesses a Retail / E-Commerce channel pair.

Tomorrow, we'll analyze one specific channel pair.