February 20, 2024

MRV: An Example With Home Merchandise

Home is one of those categories that Executives love, customers allegedly love, and analysts don't love.

Why?

Because buying Home product stalls customer evolution.

Here's a grid for Home products within this brand.


This table is just plain scrumptious.

Who buys Home Merchandise? In this case, it's generally customers in the middle of their life stage with the brand, but mostly among loyal customers.

So, our best customers are generally buying Home merchandise.

Do winning Home items help/hurt future customer spend?

  • Winning Home Items HURT future customer spend.

I see this happen a lot - have been watching this for more than three decades. Once that customer buys sheets or furniture, the customer doesn't need to buy again for awhile - even though you offer other products that the customer could purchase regularly.

As a marketer, you have to be very careful WHO you offer Home products to. You might think you are helping the customer cross-shop your entire brand. If you cause your customer to spend $50 less next year because of it, you've accomplished little and likely hurt the customer relationship.



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