May 08, 2018

What Is Happening Between E-Commerce And Retail?

I wrote about the Migration Probability Table back in 2006. It was a big part of the Multichannel Forensics book that I wrote in 2007.

And it's becoming important in 2018.

Look down the Retail Channel column. Of all customers who purchased in-store in 2017, 58.8% purchased again (corporately) in 2018. 43.6% bought from Retail, 14.8% bought from Desktop E-Commerce, and 12.9% purchased from Mobile Commerce (tablets, phones).

Then I create an index ... I divide the individual channel rebuy rate by the annual rebuy rate. Take the 43.6% retail channel rebuy rate into retail and divide it by the overall annual rebuy rate of 58.8% and you get 74.1%. It means that if a customer repurchases, the customer has a 74.1% chance of repurchasing into retail.

The table has meaning, of course, but it has more meaning if you compare the table across multiple years.

So tomorrow we'll compare the 2018 table (above) to the same table in 2014. And then we'll see what is happening between e-commerce and retail. 

Business Principle #1