March 09, 2020

But They Need To See New Merchandise

One of the first things I look at in a File Power analysis is new merchandise.

  • Do the best customers prefer new merchandise?
  • Do new/marginal customers purchase new merchandise?
  • Does the brand push existing merchandise at new/infrequent customers?
Here's the format of the grid system I produce within a File Power analysis.


The best customers (Grade = "A") reside in segment X=5, Y=5. Those customers generate 48% of their sales via New Merchandise.

Marginal customers (Grade = "F") reside on the left side of the table ... typically at X=1 or X=2. They generate between 15% of their sales and 30% of their sales via New Merchandise.

It's common for old-school catalogers to stuff the catalog full of best sellers to maximize prospect performance. In other words, catalogers frequently "cause" this dynamic to happen.

For e-commerce brands, the dynamic still frequently happens. Best customers are bored by the same-old-same-old ... best customers seek out new merchandise.

The e-commerce brand can personalize the experience to serve multiple audiences.
  • Feature newness to best customers, maximizing response/conversion.
  • Feature best-selling winners to prospects and infrequent buyers, maximizing response/conversion.
Do something different for each audience, and you'll find you have more File Power ... resulting in better short-term sales and better long-term potential.






No comments:

Post a Comment

Note: Only a member of this blog may post a comment.

Key Findings In The Time Lapse Analysis

Here's our Time Lapse Analysis from the past two days. Remember, green cells indicate areas of the customer file that are growing. Red c...