Dear Catalog CEOs:
Lost in our zeal to be "multi-channel" or "omni-channel" or whatever the latest term is for the vendor community to encourage us to spend a fortune chasing customers all over the internet is one important word ... "merchandise".
Yup, this is the stuff we sell customers. Contrary to popular belief, it's the reason why customers buy from us.
One of the most important concepts in the world of merchandise is "carryover product". It is product that performed well last year, so well that your merchandising team decided to "carry over" the product to next year.
I like to rank-order last year's product from best selling (total sales) to worst selling. Within that framework, I find the inflection point where 95% of products are "carried over" for the next year. This point is the "carryover number".
When evaluating the success of new products, I look at the percentage of new products that achieve the "carryover number".
In businesses that are growing, the carryover number changes from year to year - it increases in volume as the business grows.
The carryover number also helps identify when your merchandising team is behaving inconsistently. For instance, if sales are constant but the carryover number changes by +/- 25% by year, your merchandising team is behaving in an inconsistent manner --- identify why this behavior is happening, there may be a good reason for it.
Carryover product is very important in merchandise analysis. The carryover number represents an important metric in analyzing merchandise performance.
Four months go by quickly, doesn't it? In this run of the MineThatData Elite Program, we'll cover the usual metrics that evaluate th...
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...