September 10, 2019

Sales Are In Decline

Sometimes you have to take a step away from micromanaging conversion rates, don't ya think??

Recall our table ... where we analyze annual sales by low price points, average price points, and high price points?

Well, this company has a problem. Sales are in decline, and have been for each of the past four years.

Did sales decline among high price point items? No! Sales actually increased.

Did sales decline among average price point items? Yes.

Did sales decline among low price point items? Yes, and they decreased fastest in this category.

Let's compare 2019 to 2016:
  • Low price point items = $11 million decrease.
  • Average price point items = $7 million decrease.
  • High price point items = $1.5 million increase.
When there is a marketing problem, you see decreases across the board.

When there is a merchandising problem, you see differences across price point bands ... like we see in the table above.

Clearly, this company is de-emphasizing low price point items and is promoting high price point items. The result? A dying brand.

Keep your analytics simple. You can't see the issue above when trying to micro-manage conversion rates or analyzing e-mail open / click-through rates. And yet, the issue above is what is driving this company into the ground.

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