January 07, 2015

Hippoman's Big And Tall: Customer Metric Problems

So far, we have a profit and loss statement that looks very gloomy in 2014, and we have new item productivity that is completely in the tank in 2014.

This graph illustrates the number of rolling twelve month buyers. On average, the trend is highly negative.

But notice the blip that started late in 2012, and carried through mid 2013.

This is a tell-tale signature, folks. This tells me that somebody in marketing tried to manipulate poor business performance by trying to acquire a lot of new customers.

I want to show you another trend I uncovered in the data. Take a look at the average price of an item purchased by customers.

We've just uncovered two strategies, employed by Management, to keep the business moving forward.

  1. From late 2012 to mid 2013, Management tried to grow the business by investing in new buyers.
  2. From late 2013 through mid 2014, Management tried to grow the business by raising prices.
Tomorrow, we'll take a look at another series of customer metrics, designed to help us understand what is happening with this business.