The least understood concept in Direct Marketing (and Retail for that matter) is the concept of Incremental Sales.
Incremental Sales are sales that are generated above-and-beyond what would normally be expected. For instance, you have an e-commerce website that generates $2,000,000 a month. If you maintain the same marketing strategy you maintained previously, you need to do something to create additional sales. The additional sales, above-and-beyond the $2,000,000 you expected, are Incremental Sales.
Why are Incremental Sales important?
Because nearly everybody wants credit for sales that would have happened anyway.
This "lust for credit" causes us to be less profitable than we could be. Our "optimization culture" can do an amazing job of not yielding an optimal outcome!
Tomorrow, we'll begin to explore this important topic.
Subscribe to:
Post Comments (Atom)
The Time Lapse Analysis
If you do a credible job of Developing Customers, you'll see your success via what I call a "Time Lapse Analysis". Here is the...
-
It is time to find a few smart individuals in the world of e-mail analytics and data mining! And honestly, what follows is a dataset that y...
-
Here's a common dynamic in my projects ... see if this happens at your company. Your average price point is $40.00. Customer response...
-
I always face a challenge from marketers when I talk about implementing a Welcome Program. When I tell marketers that a Welcome Program gene...
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.