May 12, 2021

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 cells indicate areas of the customer file that are on the decline.

We read across the table from left-to-right. Each month that passes is recorded in the table. We get a two year view of overall Customer Development, coupled with two summary columns at the end of the table comparing this year to last year, and this year to two years ago.

What do you see as you read across from left to right?

Well, you see a lot of orange/red, don't you?

This means that the customer file was shrinking. This company was failing in Customer Development activities (or failing at developing credible merchandise).

Are the orange/red cells evenly distributed from top to bottom? The answer is mostly "yes". This means that this brand is failing across all customer segments ... great customers, average twelve-month buyers, newer twelve-month buyers.

Notice that about eight months ago the trend changes ... changes in dramatic fashion. All of a sudden this brand has significant gains in customers, across the board but more heavily weighted in the middle of the table. Hint - this is when COVID started, and this is when this brand experienced big gains.

Notice that the green boxes tend to have a diagonal trajectory (from top to bottom, from left to right). Those are customers who buy and then don't buy again, thereby fading in terms of customer quality.

Companies that do a great job of Developing Customers have a stronger hue of green at the top of the table than at the bottom of the table.

Companies that do not Develop Customers have uniform colors from top to bottom.

Where does this brand fall on that spectrum?





No comments:

Post a Comment

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

Customer Development: Price vs. Rebuy Rate

As prices increase, annual repurchase rates decrease. For the Merchandise Categories at an actual brand, here's what the relationship lo...