I’ve seen two strong examples of conventional wisdom turning out to be misguided. At one multi-brand retailer, there was a belief that the customer base for one brand was radically different from the other brand. However, when we actually examined the customer data, we learned that over half of that brand’s buyers also shopped with the other brands in the portfolio.
At a separate retailer, there was a specific product launch that was deemed a massive success when viewed through the lens of traditional retail metrics like sales and inventory sell-through. But, when the retailer looked at the same performance through the lens of the customer, they saw dramatically lower repurchase rates, lifetime value and net promoter scores for the customers acquired during that period. It turned out that marketing had done a great job in getting customers to try the product, but the product itself did not perform well for a wide variety of the customer base.
- Chris Chapo, Senior Vice President of Data and Analytics at SKIMS