Yesterday we evaluated "Brand A", with an approximate 30% annual repurchase rate.
Here is "Brand B", with an approximate 45% annual repurchase rate.
These tables are so darn "delicious".
Read across the Recency = 1 rows in both tables. Customer Development in each table (meaning each brand) is essentially the same.
Read across the Recency = 3 rows in both tables. Customer Development in each table (meaning each brand) is different! "Brand A" is losing customers, "Brand B" is doing a better job of keeping customers.
Read across the Recency = 12 rows in both tables. The differences are stark.
Read across the Recency = 24 rows in both tables. The differences are like night and day.
By the way ... both brands are in the same category, so it's not like one brand sells something that customers want less often. Nope. This is what it looks like when one brand is really good at Customer Development. And this leads to an annual rebuy rate that is fundamentally better at "Brand B". That leads to a powerful file that leads to much more profit, so much more profit that "Brand B" can spend more on marketing programs, causing more repurchase activity, making Customer Development look even better.
If you are "Brand A" and you don't have money to do what you want to do, get clever.
- Hire some people who know how to make money on Instagram.
- Hire some people who know how to create entertaining videos.
- Hire a vendor who knows website personalization inside and out.
- Hire a vendor who knows email personalization inside and out.
- Create your daily podcast where you interview your merchants who crave the products they are selling.
- Develop in-house influencers and unleash them on your "community".
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