Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Brooks Brothers Customer Migration trendlines 2007 - 2009

200 views

Published on

A full review of customer migration from segment to segment was completed as part of an audit of the total business in 2012. The objective was to understand where investment needed to be made.

Published in: Marketing
  • Be the first to comment

  • Be the first to like this

Brooks Brothers Customer Migration trendlines 2007 - 2009

  1. 1. REVISED 1/19/2011 II.0 BROOKS BROTHERS Customer Retention FY07-09 Charles de Gruchy
  2. 2. REVISED 1/19/2011 New-To-File Customers 100% No Purch 84% Purch 16% No Purch 44% Purch 56% Nearly 6 in 10 (58%) of FY07 New Customers did not make a purchase in FY08. 84% of these customers did not make a purchase again in FY09. Of the 42% who did make a purchase in FY08, 56% continued to purchase in FY09. New Customer Retention, FY07-09 READ AS: 42% of FY07 New-to-File customers made a purchase in FY08. Of these FY08 purchasers, 56% made a purchase in FY09. SOURCE: MBS Customer Database. FY07 FY08 FY09 Purch 42% No Purch 58% Overall FY07 New Cust Retention = 33%
  3. 3. REVISED 1/19/2011 No Prch 36% Prch 64% 1x 69% 2x+ 31% No Purch 65% Purch 35% No Purch 42% Purch 58% No Prch 49% Prch 51% No Prch 86% Prch 14% No Prch 76% Prch 24% Retention is much higher among new customers who made at least 2 purchases in their initial year. 58% of these customers made a purchase in FY08 (vs. 35% for 1x purchasers). New Customer Retention – Purchase Frequency, FY07-09 READ AS: 69% of FY07 New-to-File customers purchased once (1x) in FY07. Of these FY07 1x customers, 35% made a purchase in FY08. Of these FY08 purchasers, 51% made a purchase in FY09. SOURCE: MBS Customer Database. Overall New Cust Retention = 42% Overall 2X Cust Retention = 47% Overall 1X Cust Retention = 27% FY07 FY08 FY09
  4. 4. REVISED 1/19/2011 1x 69% 2x+ 31% No Purch 65% Purch 35% No Purch 42% Purch 58% Looking at FY08 New Customers, retention is down (35% vs. 42% in FY07). This is even more concerning considering that the ratio of 2x+ New Customers was higher in FY08 (35% vs. 31%). New Customer Retention – Purchase Frequency, FY07-08 FY08-09 READ AS: 69% of FY07 New-to-File customers purchased once (1x) in FY07. Of these FY07 1x customers, 35% made a purchase in FY08. READ AS: 65% of FY08 New-to-File customers purchased once (1x) in FY08. Of these FY08 1x customers, 27% made a purchase in FY09. SOURCE: MBS Customer Database. 1x 65% 2x+ 35% No Purch 48% Purch 52% No Purch 74% Purch 27% Overall New Cust Retention = 35% Overall New Cust Retention = 42% FY07 FY08 FY09
  5. 5. REVISED 1/19/2011 II.4 Among FY07 New Customers who have subsequently made a second BB purchase, nearly 40% of them did so within the first three months. This suggests an opportunity to re-engage 1x purchasing new customers in the 3-12mo window before they are highly likely to become lapsed / inactive. 0% 20% 40% 60% 80% 100% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 # Months PercentofCustomers 6mo 56% 12mo 79% 24mo 96% >24 Months 4% FY07 New Customer Retention – Timeline to Second Purchase READ AS: Among FY07 New-To-File customers who have subsequently made a second purchase with Brooks Brothers, 19% of them made their second purchase within the first 30 days of their initial purchase, and 39% made their second purchase within 3 months of their first purchase. NOTE: Only includes customers on the database who have made at least 1 Brooks Brother purchase after their initial purchase in FY07. First and/or second purchases can be from any channel (Retail, Factory, Direct). SOURCE: MBS Customer Database. 3mo 39% Re-engagement Window

×