Merchandise Productivity vs. Customer Acquisition

You recall the forecast for this business ... sales are forecast to decline.

Why is this business getting smaller?  Is it Merchandise Productivity or Customer Acquisition strategy?

Here is my comp segment analysis ... which yields Merchandise Productivity. Tell me what you see here?

On average, Merchandise Productivity is increasing. The business is getting smaller ... but Merchandise Productivity is improving.

Uh oh.

This means that the Merchandising Team is doing their job.

How about New + Reactivated Customers ... the realm of the Marketer?

And there you have it. Marketing isn't doing their job ... new + reactivated comp counts are down 3% this year and are down 8% the year prior.

Look at August / September / October ... Merchandise Comps are up, New + Reactivated Comps are down.

This is an interesting case, isn't it? The Merchandising Team is largely doing their job ... but Marketing isn't capitalizing on the opportunity.

You run these reports, right? You know how each table yields a forecast that is either good/bad, right? If not, let me help you ... kevinh@minethatdata.com.


"Forecasting outcomes are the sum of all analytics and marketing knowledge possessed by your company."