January 20, 2013

Kaley's Knits: Demand Up, Newbies Down. How?

If a business is growing the top line, regardless of profit, then growth can only come from a select set of tactics.
  1. Increase New Customers.
  2. Increase Annual Repurchase Rate.
  3. Increase Orders per Buyer per Year.
  4. Increase Items per Order.
  5. Increase Price per Item Purchased.
We already demonstrated that there is a dramatic decline in new customers.  Let's look at orders per buyer per year.

Hey, we have good news, huh?  Around the time when new customer counts plummeted, orders per buyer per year increased.

Without having knowledge of the marketing strategies employed at Kaley's Knits, I can tell that Management made a shift from spending money on customer acquisition to spending money on customer retention.  The metrics (new customers, orders per buyer per year) move in opposite directions at about the same time (mid-2012).

By the way, it's really tough to get customers to purchase more times per year.  You accomplish this by ...
  1. Having outstanding merchandise.
  2. Marketing to the customer more.
  3. Offering discounts and promotions, like free shipping or 20% off.
In a few days, we'll look at items per order and price per item purchased, as we continue our forensic study of Kaley's Knits.


  1. I guess that depends on how you plan your marketing strategy. All those select five topics provided here can really make your business grow.

  2. The crucial part of the growth of the business is planning stage of a good marketing strategy. Every successful business experienced all of this.

    -Derrick Patterson

  3. That's absolutely good news about the business. You have successful strategies, and you're right about spending money on customer retention instead of acquisition. Customer acquisition is quite easy if you know who your target market is, and you know the best way to address them. Now, the challenging part is the retention, because you should meet their expectations as they get higher every moment you succeed in giving them what they need.

  4. A good sign that your business is growing is that when there is an increasing rate of demand.

  5. Getting the market to patronize your product is the main goal of every marketing strategy, it can take some time to know when your demand is up or down.


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