Thanks for sharing this Adi. If you had 100 as your budget , how would you split it up between the acquisition , conversion and cross sell .... Would that depend on the business priorities or is there a rule of thumb that you follow.
Thank you for this clear, practical framework, Adi. On the variable of basket-size, I think it’s useful to specifically call out “trade-up”; i.e. converting the particular purchase occasion to the higher value per use / better performing / better profitability solution of the same brand => something we learnt from Gillette blades, and relentlessly implemented on Finish tabs/caps, Durex condoms, Vanish stain removers, etc.
Another call out for me is that, over the long run, out of all the variables here, the “traffic / penetration” is ”the first among equals”: Unless one has a strong penetration base, there is not much leverage to be had through pulling other levers, as +300% growth over a “limited” base is still “limited”.
Anyway, my quick reaction to the very useful framework you architected here. Cheers, again.
Refik, thanks for bringing up fond memories of our Finish Framework! And thanks for your great comments. I agree reg uptrade - can be called out separately to upsell. Reg the traffic/penetration also I think you are right - Penetration may be ‘first amongst equals’ in in some parts of the evolutionary S curve for example in underpenetrated/low unit basket size markets. On the other hand, in luxury or high penetrated high unit value markets (eg iPhone) at a high unit price point other variables can be equally important or more important.
Thanks Alessio. I think the math will work in the same way but the actions for the teams to optimise the drivers of the levers will need to be customised - eg for B2b - more customers, more chances to sell to them, better conversion and more value/transaction. You may have different drivers to drive these KPIs - eg conversion could be more skill based or service driven rather than user experience driven...
Thanks for sharing this Adi. If you had 100 as your budget , how would you split it up between the acquisition , conversion and cross sell .... Would that depend on the business priorities or is there a rule of thumb that you follow.
This you for this framework !
Thank you for this clear, practical framework, Adi. On the variable of basket-size, I think it’s useful to specifically call out “trade-up”; i.e. converting the particular purchase occasion to the higher value per use / better performing / better profitability solution of the same brand => something we learnt from Gillette blades, and relentlessly implemented on Finish tabs/caps, Durex condoms, Vanish stain removers, etc.
Another call out for me is that, over the long run, out of all the variables here, the “traffic / penetration” is ”the first among equals”: Unless one has a strong penetration base, there is not much leverage to be had through pulling other levers, as +300% growth over a “limited” base is still “limited”.
Anyway, my quick reaction to the very useful framework you architected here. Cheers, again.
Refik, thanks for bringing up fond memories of our Finish Framework! And thanks for your great comments. I agree reg uptrade - can be called out separately to upsell. Reg the traffic/penetration also I think you are right - Penetration may be ‘first amongst equals’ in in some parts of the evolutionary S curve for example in underpenetrated/low unit basket size markets. On the other hand, in luxury or high penetrated high unit value markets (eg iPhone) at a high unit price point other variables can be equally important or more important.
Very interesting Adi, thanks. How would this apply to the service (instead of product) business? And/or to the B2B (instead of the B2C) model?
Thanks Alessio. I think the math will work in the same way but the actions for the teams to optimise the drivers of the levers will need to be customised - eg for B2b - more customers, more chances to sell to them, better conversion and more value/transaction. You may have different drivers to drive these KPIs - eg conversion could be more skill based or service driven rather than user experience driven...
Adi this needs to be a podcast series
Very interesting framework. Sample calculation made it easy understand.