Earlier in the case study, we learned that Hippoman's Big And Tall is highly, and I mean highly dependent upon new customers for sales growth.
So let's look at new + reactivated customers (all new customers plus all customers who, when they bought, were at least 13 months past their last purchase) during the past three years.
Now, please look at January - June of 2014. There's a serious problem, don't you think?
Remember our new item comp segment analysis results from January - June 2014?
And here was what existing item comp segment performance looked like:
There is a problem with new + reactivated customers in January - June.
There is a problem with new item productivity in January - June.
There is no problem with existing item productivity in January - June.
Across my client base, when there is a problem with new + reactivated customers, the marketing team gets "lit up". In fact, with the kind of problems observed here, it's likely that somebody in marketing is going to be fired.
Would you fire somebody in marketing, now that you've had a chance to review the results?
Or would you focus the company on new items?