Now that you have recovered from the magic, the pageantry, the thrill of Cyber Monday, you might want to take a look at how you changed your business going forward ... well, more specifically, how you altered future customer behavior.
I posted this information on LinkedIn last week ... when I post it on Twitter I get the typical professional with 22,493 tweets and 94 followers telling me I'm a moron ... but at least on LinkedIn folks understand the nuances of business. I ran a model last week, predicting future spend on full-priced items and on discounted items, based on purchase history of full price and discounted items.
Assume we have a customer who spent $100 on full-priced items in the past, and spends $100 on Cyber Monday on full priced merchandise. In the next twelve months, the customer will spend:
- $62.50 on full-priced items.
- $13.60 on discounted/promoted items.
- $76.10 total spend.
- $45.32 future gross margin dollars (59.6%).
- $52.80 on full-priced items.
- $20.50 on discounted/promoted items.
- $73.30 total spend.
- $42.02 future gross margin dollars (57.3%).
- $43.10 on full-priced items.
- $27.40 on discounted/promoted items.
- $70.50 total spend.
- $38.72 future gross margin dollars (54.9%).