December 12, 2012

The Evolution of the Search Buyer

When you run simulations, you get an opportunity to see how specific customers evolve over time.

Take a look at a search buyer.

In this simulation, the majority of search-only buyers purchased just one time via search last year.  Now look at how these customers evolve over time ... next year, 54% of their dollars are in search ... two years from now it is 28% ... and three years from now it is 14%.  In other words, this customer doesn't stay as a search customer, the customer migrates to and uses other channels (in this case, 64% of year three demand is generated via catalogs).

Look at the merchandise preferences of the customer ... I list each merchandise category (00 to 09, ten in total) ... notice how the customer evolves out of merchandise category 00 and moves into merchandise category 06.  Think about this when figuring out what to market to the "search" customer in the future.

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