January 28, 2020

New Customer File Power

There are all sorts of interesting dynamics with new customers.

Here we have a case of a brand that is really struggling to acquire new customers.
  • 141,995 new customers last year.
  • 182,582 new customers the year prior.
When we look at new customers by month, we quickly notice that File Power is increasing. The customers being acquired are "better" than they used to be. But there are fewer of 'em.

Notice that AOV continues to increase.

Notice that "Power Weight" ... the channel influence of each first-time buyer ... is getting worse.

So what is happening here?
  • Likely Culprit = Price Increases (I know this from other analytics in this project).
  • As prices increase, customers are dissuaded by purchasing.
  • Those who do purchase are "better" customers, and therefore, have more File Power.
  • Overall, this is a bad outcome for this brand.

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