January 17, 2018

What Does An 80/50 Table Look Like?

It looks like this!

In this example, 50% of the twelve-month buyer file yields 78.4% of future demand from the twelve-month buyer file. This is a mostly reasonable distribution. And even though it is reasonable, look at the top 7.5% of the file ... yielding 28.7% of future demand. The distribution is reasonable and the top 7.5% of the file are zealots.

Look at the values down the "Next 12 Months" column. You get below Rank = 16 +/- and you can see that customers just don't deliver a lot of future volume, do they? A large fraction of the twelve-month buyer file is not expected to deliver much value. Zealots, however, they deliver a ton of value.

Page Counts When Bifurcation Hurts All Other Customers

Yesterday we talked about the fact that best catalog customers (a minority of your file) deserve MANY catalogs that are merchandised with...