We've been evaluating micro-businesses ... your business is comprised of dozen(s) of micro-businesses. Each of those businesses possess different dynamics.
Sometimes there is an overriding relationship. For instance, this business is represented by a graph ... the x-axis is the rebuy rate of customers buying again from each individual micro-brand (category), the y-axis is annual net sales for the micro-business (category).
In general, one could fit a line through the dots ... if a micro-business (category) retains more customers, it generates more net sales. Sort of a #duh. Snoozer.
Except for two things.
Look at the category with an approximate 7.8% rebuy rate ... but generating about $11,000,000 a year. That shouldn't happen ... that micro-business should be somewhere around $6,000,000 a year. Why so high? High price points. The category has high prices, which artificially lower rebuy rates ... but the customers who do purchase spend a lot more, resulting in a good outcome.
Look at that data point with a rebuy rate > 14%. This micro-business has as loyal of customers as any category, and yet sales are awful. Why so low? Because the category does not attract customers outside of its own micro-category. Yeah. Customers like this category, but customers who do not buy from the micro-category DO NOT LIKE this category and won't buy from it, greatly limiting the potential of the category.
There's a lot of secrets in your business ... go look for them ... then develop marketing plans for each micro-business (category).
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