Quiz Week: Question #1

This week we're going to cover comp segment results that frequently arise in my work. Your job is to diagnose the reason why the business is succeeding or failing.

Question #1:  Here are comp new/reactivated comps, and comp segment results ... for the past six months. What is the likely cause of this business not meeting expectations.

Comp New/Reactivated Buyer Counts:

• Sep:  -22%.
• Aug:  -18%.
• Jul:    -30%.
• Jun:  +13%.
• May: +11%.
• Apr:    +8%.

Comp Segment (Those With Exactly Two Purchases In The Past Year) Results.

• Sep:  +6%.
• Aug:  +8%.
• Jul:    +5%.
• Jun:   +7%.
• May:  +3%.
• Apr:   +9%.

Based on what you see here, what is the reason this business did not meet expectations in recent months? What would cause a business to exhibit the comp new/reactivated buyer and comp segment results you see here? What would you do to fix the problem?