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.






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