April 29, 2024

Pushing a Rock Up a Hill

I once spoke with a CEO who suggested he was going to "reinvent the brand".

It's not easy to reinvent a brand. Sometimes, your customer won't let you reinvent the brand.

Before you make the decision to blow things up, look at the percentage of sales that come from winning items by customer life stage.

  • 1x Buyers = 33% from winning items.
  • 2x Buyers = 37% from winning items.
  • 3x - 5x Buyers = 42% from winning items.
  • 6x - 10x Buyers = 46% from winning items.
  • 11x+ Buyers = 55% from winning items.
This analysis tells you that your best-selling items are preferred by your very best customers.

If your winning items are preferred by your very best customers AND your winning items tend to be items introduced 3+ years ago ... well ... your customers won't let you reinvent the brand.

Now, if half of your sales come from new buyers AND a below-average amount of sales come from winning items, then you have freedom to reinvent your brand. Your customer will let you change who you are.

The same issue holds true for discounting. If you use email marketing to convey the best discounts possible to your best customers, your best customers will rebel when 50% off becomes 20% off. You'll be pushing a rock up a hill.

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