MRV

I call the metric "Merchandise Residual Value", and when you hire me for your S-Tier Analysis you get to see how MRV varies at an item level.

What is Merchandise Residual Value (MRV)?

• (The Probability of a Customer Who Bought "Item X" Repurchasing Again) / (Expected Probability of a Customer Who Bought "Item X" Repurchasing Again).

It sounds nerdy, sure. But it sure is effective.

In the dataset I'm analyzing (actual data), the brand has a new item. The item has been sold for about 1.364 months, and has been purchased by customers placing (on average) their 2.27th order.

• Based on this data (1.364 months, 2.27th order), we "expect" a rebuy rate of just 8.4% after buying this item.
• In reality, the rebuy rate is actually a whopping 36.4%.
• MRV, or Merchandise Residual Value, is (0.364) / (0.084) = 4.343.

In other words, customers buying this item are 4.343 times more likely to repurchase than customers buying an average item.

Wouldn't you want to know that?

Shouldn't you HAVE to know that?

Every item you sold in the past year has a MRV. You need to give extra marketing love to items with a high MRV.