February 15, 2024

MRV Yields "Some" Bad Items and "Some" Good Items

This is the way MRV (Merchandise Residual Value) looked for the Winning Items at one brand:



Most items act "normally" ... but there are 20+ items that perform terribly (i.e. they deliver customers that, after controlling for the quality of the customer, deliver customers with reduced future value). Conversely, there are 20+ items that perform really well ... the customers who purchase those items are worth more in the future BECAUSE they purchased those items.

It's really, really important to know which items deliver customers that BECAUSE they bought the item are now worth MORE than they would have been previously.

This knowledge changes how the marketer does every aspect of his/her job.

It's that important.

Are you performing this analysis?

If not, contact me immediately (kevinh@minethatdata.com) and we'll get busy.



No comments:

Post a Comment

Note: Only a member of this blog may post a comment.

Focusing on Tiny Things

Sometimes on LinkedIn you'll see "all the good stuff" from the CEO. An image of twelve people sitting inside a restaurant, gla...