Examining Pareto Law across department store shoppers

IF 2.4 4区 管理学 Q3 BUSINESS International Journal of Market Research Pub Date : 2022-12-13 DOI:10.1177/14707853221145851
Arry Tanusondjaja, Jenni Romaniuk, M. Nenycz-Thiel, Mototaka Sakashita, Vijay Viswanathan
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引用次数: 2

Abstract

Department stores invest in loyalty strategies that largely focus on retaining current high value customers in response to increasing competition in retail shopping. In this study, we examine the contribution of the top 20% customers for transaction frequency and value (“heavy buyers”) to the total sales, and the consistency of this contribution across departments within a store. We also investigate the heavy buyer stability over time across 3 years, from over 550 million transactions from a department store chain in East Asia. The results show that the Pareto ratio of the top 20% spenders account for 71% of revenue (and 52% of the total transactions), and the top 20% transactors represent 58% of revenue (and 62% of total transactions), which may signal the role of such heavy buyers to overall stores sales. At each department level, the heavy buyers (by value) contribute from 65% to 86% of the department revenue. Despite this, the stability of the top 20% segment over time varies greatly by department from 11% to 74%. Finally, whether high value customers in one department store also translate across departments, depends mainly on the department size in terms of its shopper penetration. The research furthers our knowledge on Pareto Law, with important implications for customer retention strategies and loyalty programs especially for retailers.
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在百货商店购物者中检验帕累托定律
百货公司投资于忠诚策略,主要集中在保留现有的高价值客户,以应对零售购物日益激烈的竞争。在这项研究中,我们研究了前20%的客户对交易频率和价值的贡献(“大买家”),以及这种贡献在商店各部门之间的一致性。我们还从一家东亚连锁百货公司超过5.5亿笔的交易中,调查了3年来大买家的稳定性。结果显示,前20%的消费者的帕累托比率占收入的71%(占总交易的52%),前20%的交易者占收入的58%(占总交易的62%),这可能表明了这些大买家对整体商店销售的作用。在每个部门级别,大买家(按价值计算)贡献了部门收入的65%至86%。尽管如此,随着时间的推移,排名前20%的人的稳定性因部门而异,从11%到74%不等。最后,一家百货公司的高价值客户是否也能在各个部门之间转化,主要取决于该百货公司的顾客渗透率。该研究进一步加深了我们对帕累托定律的了解,对客户保留策略和忠诚度计划具有重要意义,特别是对零售商。
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来源期刊
CiteScore
6.00
自引率
6.70%
发文量
38
期刊介绍: The International Journal of Market Research is the essential professional aid for users and providers of market research. IJMR will help you to: KEEP abreast of cutting-edge developments APPLY new research approaches to your business UNDERSTAND new tools and techniques LEARN from the world’s leading research thinkers STAY at the forefront of your profession
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