February 07, 2023

More On Those Interesting Category Development Metrics

Here's our table from yesterday.

Let's look at the "Spent on Category" column. This metric represents the share of total spend last year spent within the category. If you look at Category 1, customers who bought from Category 1 spent just 4.5% of their total dollars in Category 1 ... meaning those customers spent 95.5% of their dollars on other categories. This Category is a "try and buy" category ... it does not own the customers it possesses.

Remember Categories 6/7/11? Those categories dominate this brand.

  • Category 6 = 34.2% of dollars spent by Category 6 customers are within Category 6.
  • Category 7 = 36.3% of dollars spent by Category 7 customers are within Category 7.
  • Category 11 = 61.4% of dollars spent by Category 11 customers are within Category 11.

This tells me that even Category 6/7 customers aren't terribly loyal to those categories ... they're gonna spend their money elsewhere (hint - Category 11).

Do you see an outlier when evaluating this column/metric?

Look at Category 10.

Turns out this is the fourth largest Category (generating $8.2 million last year) ... and customers who buy from this Category spent 61.5% of their dollars last year in Category 10. This means that Category 10 buyers are reasonably loyal to Category 10.

It kind of seems like Category 10 is like a comet ... maybe it isn't part of the formal solar system with Category 11 as the Sun and Categories 6/7 as major planets. We'll see.


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