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.

Catalog Craig Paperman on the Amazon Toy Catalog

Yes, this is business fiction. If this isn't your thing, take a break and read this article about Build-A-Bear and their promotion t...