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A must-read article for maternal and child shop owners, you must have an insight after reading it

by:Hshelf     2021-03-14
u003cpu003eSome bosses are ambitious and continue to expand, some bosses are struggling, and some bosses are constantly shutting down stores to survive. What is the biggest difference between them? After Pindan.com's 'Survey on the Loss of Members in Maternal and Child Retail StoresActive members tend to grow, and store business is definitely getting better and better; active users tend to be lost, and store business is definitely deteriorating. So, today we will specifically analyze the changing trends of active members and the reasons behind them. u003c/pu003e1. Active members tend to decline in general. 1. Data sample: This statistics randomly selects the operating data of 78 small and medium-sized entity chain stores in 10 provinces in Central China, South China, and East China as statistical samples. The scale of the chain is between 5-35, and the number of stores involved exceeds 1,000. u003c/pu003e2. Data conclusion: According to statistics, in the past six months and so on, the overall membership inflow of all samples: attritionu003d1:1.49, that is, every time a new valid member is attracted (at least one purchase), the store is Lost 1.49 old members, with a net loss rate of 49%! ! ! u003c/pu003eAccording to the calculations of the Pindan Data Academy, assuming that all operators maintain their current status, within 34 months, all existing members will be lost! ! ! u003c/pu003eu003c/pu003eu003cpu003e(Figure 1: Schematic diagram of the churn of sample customers in the past six months)u003c/pu003eSo what caused the increase in the churn of members? Perhaps all operators have their own experience and knowledge: e-commerce has hit, competitors have become stronger, customers have become picky, rents have become more expensive, and so on. We believe that these factors exist, but based on the intuitive data, operators underestimate the retention of existing members and put most of their resources on member absorption, which is one of the important reasons for the current excessive net loss of members. . Let’s look at two customer cases:u003c/pu003eCustomers in a certain city (A), they are the largest maternal and child chain brand in the local area. Most of their energy in November was busy opening new stores, participating in order fairs, and introducing new Brands, new customer promotions, etc., have indeed achieved good results. The number of new members in November was 805, which looks very good, but according to our statistics, the number of old members lost in November reached 969. , Compared with the number of active members in October, a net decrease of 164 people. On the surface, there are many new members, but in fact the net churn rate is still as high as 20%. u003c/pu003eu003c/pu003eu003cpu003e(Figure 2: Schematic diagram of sample customer A’s net membership growth in November)u003c/pu003eA customer (B) in a certain city did not do less traditional work in November. Compared with A Except that there is no new store opening, other operations are roughly the same. The difference is that the customer pays much attention to the maintenance of old members. In November, they added 358 new members, but through their shopping guide efforts, only 129 active members were lost. , A net increase of 229 active members compared to October. Sales have also increased significantly compared with October. u003c/pu003eu003c/pu003eu003cpu003e(Figure 3: Schematic diagram of sample customer B’s net membership growth in November)u003c/pu003e Are your active members increasing or decreasing? How long can your members let you spend? We should not only try our best to introduce new members, but more importantly, how to retain old members, so that we can continuously accumulate active members and continuously improve our performance. u003c/pu003eBig data will allow you to see the deeper reasons for the problem, so that you can know the future development trend in advance, and make reasonable adjustments based on the real problems reported by the data. If your new membership rate is less than the loss rate, then you need to find ways to make changes immediately, otherwise your future business conditions will go downhill. If you don’t know your data at all, your situation may be even more critical! u003c/pu003eu003c/pu003e
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