February 13, 2017

Another Example of Measuring Why A Retail Store Is Struggling

Here's another store trade area (zip codes ranked most sales to least sales, take zips that account for 70% of total sales).

Tell me what you observe?

First of all, the fox/rabbit issue is at play here, to some extent. Online is growing as a share to total spend. Customers are migrating from retail to the online channel. The foxes are eating the rabbits.

Second, there's a Unique Point of View issue at play. Look at new + reactivated customers by year ... 26,000 to 26,000 to 23,000. More than 10% of the new + reactivated customers dried up ... and the ones that are being acquired are starting to skew more and more to the online channel.

This store cratered by about 10% over a two year period of time. It cratered because the foxes (online) are eating the rabbits (retail). It cratered because the brand does not have a Unique Point of View.

Do you perform these analyses, so that you know why your business is succeeding or failing? Run the query!!

Page Counts When Bifurcation Helps Best Customers

Yes, your catalog customer file bifurcated ... with a minority of best customers needing more catalogs and a majority of your total file ...