Merchandise Residual Value and Winning Items

Let's say you want to go crappie fishing. You'd need your rod/reel. Maybe a squirming grub. And some crappie bites. You wouldn't impale a worm on a hook and hope for the best.

The same concept applies to fishing for new customers.

You don't say "60% OFF LIMITED TIME ONLY" which really means "IT'S LIMITED BECAUSE NEXT WEEK WE'RE 70% OFF!"

I mean, that's lazy and stupid. It's a marketing best practice, but it is lazy and stupid.

Because you are smart, you "curate" your assortment for prospects that could become new customers.

• Best Selling Items.
• Items That Attract Customers More Likely To Purchase In The Future.

Why best selling items? Because those items have higher conversion rates, better ROAS, and better profit per new customer. Why waste marketing dollars on stuff that doesn't sell? Are you are Lemonhead? No!

Why high MRV items? Because you want new customers who are more likely to repurchase in the future than new customers who are one-and-done. Why waste marketing dollars on new customers who don't buy again? Are you a Lemonhead? No!

Your "prospecting assortment" is different than your overall merchandising assortment.

1. Only offer winning or high-contending items, improving your cost per new customer.
2. Only offer items that increase the probability of a new customer buying again by 20% (high MRV items), improving your downstream rebuy rates.

It's so easy.

So why aren't you doing this?