In a typical Life Stage Analysis within a Merchandise Dynamics project, it is common to see exaggerated trends when comparing first-time buyers to loyal buyers.
I code every order in the database to see whether the order had multiple items (I call this MUL or "multiple lines") and/or had multiple categories (I call this MUC) in the order.
Let's look at MUC, or multiple categories, by life stage.
- 1x Buyers = 18% of spend tied to orders with multiple categories in the order.
- 2x Buyers = 26%.
- 3x Buyers = 29%.
- 4x Buyers = 32%.
- 5x Buyers = 32%.
- 6x - 7x Buyers = 32%.
- 8x - 10x Buyers = 34%.
- 11x - 15x Buyers = 38%.
- 16x+ Buyers = 39%.
Interestingly, 1x buyers purchase 1.95 items in a first order ... 16x+ buyers purchase 2.53 items per order. So there is some difference. Also interesting? 1x buyers purchase $54.60 items in a first order, 16x+ buyers purchase $44.69 items in their loyalty-based orders.In other words, first-time buyers are focused on what they are looking for ... loyal buyers are grazing from a larger assortment.
Use those facts in your marketing efforts, peeps.