Deciding to close a weak product line based on customer behavior

At some point the time comes to consider closing a weak product line.

The best reason is when that product just isn't creating good orders or customers. It might sell okay but the customers who buy it aren't coming back and buying again.

Before you decide, check on your data. Not just product sales data, that's one-sided. Dig into customer data and what they do after they bought the product.

Start by comparing that product against your average customer quality.

Is that product creating customers who are below-average? Are their number of orders, order amounts, likelihood of repurchasing, or total lifetime value weaker than typical customers? If they are bad, stop selling that product and promote something that has better long-term outcomes.

In Repeat Customer Insights the Customer First Product analysis will measure customer behavior based on the products each customer first ordered. Using this you can easily figure out which products produce or don't produce high quality customers.

Remember, customer attention is limited so if it's wasted on a poor-performing product you lose the opportunity to promote something better.

Eric Davis

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Topics: Customer behavior Product analysis

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