March 13, 2022

Speaking of Product Preference: An Example

Your customers tell you specifically what their future preferences are.

The table below has one row for each merchandise category a customer purchased from last year. Each column represents the percentage of next year's sales that are generated by category.

Take a look. Click on the image - it is small and contains a lot of data.

How about an example? Look at customers who bought from Category 1 last year.

  • 14.3% from Category 1 next year.
  • 10.6% from Category 12 next year.
  • 14.7% from Category 19 next year.
Ok, how about Category 7?
  • 16.8% from Category 7 next year.
  • 13.3% from Category 12 next year.
  • 17.6% from Category 19 next year.
One more ... how about Category 15?
  • 21.5% from Category 15 next year.
  • 10.0% from Category 12 next year.
  • 13.2% from Category 19 next year.
The pattern repeats throughout the table. Customers buy from the category the bought from last year, and they buy from Categories 12/19 next year. Even then, about 55% - 60% of future sales are from other categories.

This is an interesting case study.

Categories 12/19 represent the "sun" in the solar system of this brand. Everything revolves around those categories. You have a reasonable chance of selling those categories to "any" customer.

Every other category (see the red diagonal in the image) yields customers who come back to that category.

Customers are also willing to "sample" other categories.

Your marketing strategy is simple.
  • Mass market Categories 12/19. 
  • Personalize email campaigns for the category the customer bought from last year.
  • Sprinkle in other categories on an as-needed basis ... adding freshness to your marketing efforts.

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