Yesterday we discussed a four-year trend in new customers.
2017 = 645,110 (-9%).
2016 = 707,394 (-2%).
2015 = 719,693 (-6%).
2014 = 765,224 (-1%).
2013 = 771,550
2017 vs. 2013 results = -16%.
What's interesting, of course, is how this relates to the average price of an item at Gliebers Dresses.
2017 = $58.41.
2016 = $55.38.
2015 = $54.17.
2014 = $53.99.
2013 = $52.65.
2017 vs. 2013 Results = +11%.
Tell me what you observe?
This is one of the vexing challenges of modern cataloging and (more importantly) modern e-commerce.
- It has become harder and harder to find new customers.
- To compensate, CFOs have encouraged Merchants to bump up the price of new items.
- New customers find the prices offensive.
- Marketing is consequently blamed (not their fault), so they tack on 30% off plus free shipping.
- Customer file is poisoned by discounts/promotions.
Roger actually says something insightful up there, doesn't he?
- "The future of cataloging is having a small customer file delivering large amounts of profit."
He (surprisingly) can see the future ... a smaller business with a hyper-loyal (but tiny) customer base.
I want you to think about what all has to happen to move a business in this direction over the next five years ... and I want you to think about decisions+consequences. In the past few years, many folks have raised prices on new items, creating a negative feedback loop. Use your imagination to consider the consequences of this decision.
And together, we'll discuss this issue at the VT/NH Group event on April 5 (click here to register). Why don't you join me on 4/5?