Multichannel Forensics: Calculating Migration Mode
Before we go into various studies, we need to know how to calculate the migration mode of each product, brand, or channel.
Here's an example for the online channel of a multichannel retailer.
Step 1: Calculate the annual repurchase rate for online customers, across all channels. Answer = 55%.
Step 2: Calculate the annual purchase rate for online customers within each channel.
- Total Company = 55%.
- Catalog Channel = 5%.
- Online Channel = 35%.
- Retail Channel = 30%.
- Catalog Channel = 5% / 55% = 0.091.
- Online Channel = 35% / 55% = 0.636.
- Retail Channel = 30% / 55% = 0.545.
- Isolation Mode = Index between 0.00 and 0.20.
- Equilibrium Mode = Index between 0.20 and 0.50.
- Transfer Mode = Index greater than 0.50.
- Catalog is in Isolation with the Online Channel.
- The Online Channel Transfers customers to the Retail Channel.
Labels: Equilibrium Mode, Isolation Mode, Migration Mode, Transfer Mode
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