March 17, 2024

What Happens At Different Life Stages?

One of the first analyses I run in a Merchandise Dynamics project is the Life Stage Analysis. Specifically, I want to know what customers do at different phases of their Life Stage with your brand.

For instance, this is the percentage of AOV spent by customers on new merchandise (new in the past year) for a brand.

  • 1x Buyers = 26%.
  • 2x Buyers = 31%.
  • 3x Buyers = 33%.
  • 4x Buyers = 34%.
  • 5x Buyers = 35%.
  • 6x - 7x Buyers = 34%.
  • 8x - 10x Buyers = 36%.
  • 11x - 15x Buyers = 38%.
  • 16x+ Buyers = 40%.

Tell me what you observe?

Either this brand features existing items to prospects and customers early in the life cycle, or my goodness, existing items are what customers early in the life cycle "need". Conversely, loyal buyers might be bored with the old-school assortment, allocating additional dollars to "newness".

This kind of finding represents a perfect place for email marketing personalization. Show newness to the best customers, show long-term winning items to prospects.

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