April 12, 2018

The Importance of Merchandise Productivity

Remember our ninety-panel outcome?


In this outcome, six (6) catalogs is optimal.

What happens when Merchandise Productivity increases by 15%?


Just like that eight (8) catalogs is optimal. Wow!

And what happens when Merchandise Productivity decreases by 15%?


Now four (4) catalogs is optimal.

One of the great weaknesses of matchback analytics is the outcome of overmailing when merchandise productivity declines. For many catalogers, merchandise productivity has been in decline in the past decade - but that problem has been masked by matchback analytics. When you apply test panel results ... extrapolated to many different possibilities, you get to see just how important merchandise productivity is to your business.

Are you executing tests of this nature?

Are you analyzing different scenarios to better understand the "optimal" strategy to maximize profit?

You've got the skills and resources to do this.  Go do it!!!!






Business Principle #14