This one is always a classic … every one of you manages customers who ultimately gravitate toward specific merchandise categories or exhibit behavior that becomes actionable from a targeting standpoint.
I use what is called a “Factor Analysis” to reduce complicated customer behavior into actionable segments. The computer produces a visualization for me … the visualization is what so many of you have enjoyed over the past twenty years, making the visualization one of the Top 12 Analyses I perform.
So many fun associations!
Customers buying for the first time lean to one-item orders (duh), which skew to expensive items. Yup.
Customers buying from Merchandise Category 02 tend to buy items below their average historical price point. This brand is discounting within that category, it’s something I’d have to discuss with Management to understand if they were liquidating items or … well … just to figure out if they had a plan.
As customers become loyal (3rd / 4th / 5th / 6th-9th purchase) they align with new merchandise. Guess what? This one comes up frequently. Give your best customers want they want for crying out loud!!!!
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