November 27, 2018

MLV - Items Eventually Slump

Here's an example from the data I analyzed ... let's look at the "best of the best" ... the top 5% of the merchandise assortment. I graded my merchandise segments A/B/C/D/F so that means the top 5% is an "A". I wanted to see what happened to "A" items in the next year. Here's what happened:
  • 71% remained at "A" status.
  • 19% dropped to "B" status.
  • 3% dropped to "C" status.
  • 1% dropped to "D" status.
  • 1% dropped to "F" status.
  • 5% were completely discontinued.
One wonders why 5% of the very best items were discontinued in the first place? There are always good reasons for this.

Only 71% of the items remained in the hyper-winning "A" segment. This means that many items begin to die. This is why new merchandise is so darn important - you have to find new items to replace the 29% of winning items (in our example) that slumped or were discontinued. Marketers are well-equipped to help facilitate this process. Go make something good happen, ok??

Email Marketing and Discounts

It comes up over and over again. The email marketing team wants to maximize open rates (not profit, mind you, open rates). How does one...