Kevin Hillstrom: MineThatData

Exploring How Customers Interact With Advertising, Products, Brands, and Channels, using Multichannel Forensics.

January 23, 2007

Driving Sales To Other Channels: Multichannel Forensics, Part Four

Last week, Casey Carey commented about the dynamic of sales declines in the catalog channel during my three-part series on Multichannel Forensics. He believed I was focusing too much attention on the channel where sales were recorded, as opposed to the vehicle (catalog) that drove the sales volume (see here for Part 1, Part 2 and Part 3).

A big part of the Multichannel Forensics includes the use of long-range planning scenarios. This link takes you to a simple two-channel planning scenario.

In the spreadsheet, Casey's point is illustrated. Fifty thousand catalog customers migrate through an ecosystem. After two years, these catalog customers are spending more money online than in catalog. Casey is right. It doesn't matter which channel records the sales. It matters how much value a customer generates over time, across all channels. Kudos to Casey!!

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