June 03, 2021

Share of Merchandise Sales by Customer Quality

Here is a variant of the Time Lapse Analysis we talked about a few weeks ago. In this situation, I measured the percentage of sales generated by a Merchandise Category based on weighted historical spend (recent sales weighted 100%, sales three years ago weighted 20%).

That's a gorgeous image!

The best customers (top rows of the image) buy from this Merchandise Category at lower rates (about 2.7%) than lower-quality / less recent customers (about 6.0%).

When focusing on Customer Development, you focus on giving customers what they want. Best customers (in this case) are about half as likely to spend money on this Merchandise Category than are customers who are of low quality (about 30-36 months of recency in this case).


P.S.:  If you like maps, you'll like these maps!! And after clicking on the link, you'll be exposed to weeks of ads courtesy of the unsophisticated retargeting industry.




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