tag:blogger.com,1999:blog-32202893.post8000097069239341330..comments2023-10-18T08:32:17.510-07:00Comments on Kevin Hillstrom: MineThatData: Setting Up Your Bonus Structure For 2013Unknownnoreply@blogger.comBlogger11125tag:blogger.com,1999:blog-32202893.post-6624961862289391572015-05-28T14:08:05.276-07:002015-05-28T14:08:05.276-07:00Hold everybody accountable to the same metric ... ...Hold everybody accountable to the same metric ... customer service, merchandising, procurement all have the same objective, and therefore, they are all required to count on each other. When I worked at Nordstrom, the online team had half of their objective based on how retail stores performed. That changes how teams work together and it changes how people fight for each other to achieve success.<br /><br />Don't unravel. There's no need to unravel anything. Get your people working together toward common goals.MineThatDatahttps://www.blogger.com/profile/14014200122021988374noreply@blogger.comtag:blogger.com,1999:blog-32202893.post-85174141777439062122015-05-28T12:26:48.396-07:002015-05-28T12:26:48.396-07:00Thanks Kevin, we have a very tough problem here wi...Thanks Kevin, we have a very tough problem here with repurchase buyers. Much of a "Repurchase decision" is based on great customer care and order fill rates etc... We can tie a repurchase metric to campaigns we run and track the users through the funnel. Perhaps that's the way to do it but Customer service, Merchandising, Procurement can still destroy a great online experience? Not sure I can unravel this problem and construct a bonus plan around this. Do you have any other suggestions?Anonymoushttps://www.blogger.com/profile/06282771174223658159noreply@blogger.comtag:blogger.com,1999:blog-32202893.post-63942057232491876112013-10-01T17:22:22.556-07:002013-10-01T17:22:22.556-07:00Most of my clients pick a segment of customers at ...Most of my clients pick a segment of customers at a point in time, then they measure the percentage of the customers who repurchase in the next twelve months. The segments vary wildly, the metric (probability of purchasing again in the next twelve months) is very consistent.<br /><br />I have numerous segments in my analysis - I measure the percentage of them that purchase again in the next year - I measure the amount customers spend if they purchase in the next year - and I measure profitability after subtracting costs in the next year. But I have the flexibility to define my segments however I want - given that, I care about downstream 12 month value.MineThatDatahttps://www.blogger.com/profile/14014200122021988374noreply@blogger.comtag:blogger.com,1999:blog-32202893.post-1018997496705839942013-10-01T17:16:24.442-07:002013-10-01T17:16:24.442-07:00Is there an industry accepted calculation for twel...Is there an industry accepted calculation for twelve month repeat purchase rate? If so, is it the calculation you have used in your posts? Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-32202893.post-54227358777540060362013-10-01T14:54:23.769-07:002013-10-01T14:54:23.769-07:00Correct, that customer did not place a repeat orde...Correct, that customer did not place a repeat order in the subsequent year - the customer is a 2x buyer in the prior year.<br /><br />You are free to segment your customer file however you like - if you want to account for that customer as being a repeat buyer, do it, no worries!MineThatDatahttps://www.blogger.com/profile/14014200122021988374noreply@blogger.comtag:blogger.com,1999:blog-32202893.post-38125958939167100192013-10-01T14:27:16.108-07:002013-10-01T14:27:16.108-07:00In the above scenario you have laid out, what happ...In the above scenario you have laid out, what happens to the customer that purchased on 10/15/11 and then again on 6/15/12? While this customer has made a repeat purchase, it would not be accounted for in the above equation. Is there a way to account for this repeat sale?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-32202893.post-18865347753011910662013-09-28T09:28:47.089-07:002013-09-28T09:28:47.089-07:00Pretend it is September 28. Take two years of data...Pretend it is September 28. Take two years of data - query your database, and identify all customers who purchased between 9/29/2011 - 9/28/2012. Then, measure the percentage of customers who repurchase between 9/29/2012 - 9/28/2013. This is your repurchase rate.<br /><br />Next week, the dates shift ... ID customers who bought between 10/6/2011 - 10/5/2012, then measure the percentage of customers who purchase again between 10/6/2012 - 10/5/2013.MineThatDatahttps://www.blogger.com/profile/14014200122021988374noreply@blogger.comtag:blogger.com,1999:blog-32202893.post-44956186064310540762013-09-28T04:44:26.383-07:002013-09-28T04:44:26.383-07:00Kevin,
Thank you for the insightful post. How do ...Kevin,<br /><br />Thank you for the insightful post. How do you recommend tracking progress on twelve month repurchase rate throughout the year? Is it simply a rolling twelve month repurchase rate target each quarter that could be broken down into smaller checkpoints (e.g. weekly or monthly) or would you focus the individual on another metric altogether (e.g. repeat transactions)? If you think a rolling repurchase rate target is best, how would you calculate the twelve month repurchase rate each month? <br /><br />Thanks! Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-32202893.post-84632491239488034132013-05-06T10:30:30.014-07:002013-05-06T10:30:30.014-07:00It depends on the employee ... analysts typically ...It depends on the employee ... analysts typically have a 5% to 10% base ... managers are usually around 20% ... directors are usually around 30% ... executives are somewhere between 50% and 125% of base.MineThatDatahttps://www.blogger.com/profile/14014200122021988374noreply@blogger.comtag:blogger.com,1999:blog-32202893.post-63685300630264090722013-05-03T13:35:21.023-07:002013-05-03T13:35:21.023-07:00of the 100% bonus weights, what would the total bo...of the 100% bonus weights, what would the total bonus comp be? 10% of base? 25% of x?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-32202893.post-69671356150130186752013-04-12T09:40:12.843-07:002013-04-12T09:40:12.843-07:00I suppose it is a better move to identify a target...I suppose it is a better move to identify a target for the marketing team but letting the team choose what path they should take to reach that goal. Sometimes giving marketing staff some leeway and legroom for creativity gets more positive results than just having them blindly follow orders.Spike Blackhttp://sacramentomarketinglabs.com/social-media/noreply@blogger.com