June 20, 2022

The Marketer Influences The Customer

For one company, I looked at the GPA of the merchandise purchased by customer based on customer life stage ... for all new customers acquired in the past two years. Ready?

Look at the "Below Average" column ... on a first order, 25.9% of the merchandise is priced below the historical average for the item. For loyal customers? 82.3%. This brand is discounting the living daylights out of the stuff they sell to the most loyal buyers.

Look at the "New Items" column. 13.5% of what first-time buyers purchase are new items (new in the past year). 4.5% of what loyal buyers purchase are new items.

Now look at "A" items ... 13.1% of what new buyers purchase are the very best-selling items. However, 77.6% of what the most loyal buyers purchase are the very best-selling items.

Look at the "GPA" column ... the GPA goes from 1.81 to 1.94 to 2.13 to 2.39 to 2.66 to 3.13 to 3.39.

In other words, the customer (as the customer matures) clearly increasing buys the best items. However, the marketer is pushing this customer to purchase the best items at discounted prices. The marketer is driving the behavior.

It would take a LOT of discounted purchasing to overcome the damage this marketer is doing to this business.

Yes, the marketer influences the customer.

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