Shoemart Case Study

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Landmark Group started 40 years back and is one of the largest retail groups in the MENA region with 50,000 employees’ strength. They are progressing always with strong marketing strategies alongwith appropriate metrics and audits. They have a lot of retail concepts and one among that is Shoemart. Their footwear division Shoemart was started 25 years back and today has strong presence over the MENA region. We will go through certain metrics followed by Shoemart that has assisted them in progressing throughout and also certain metrics they can apply Lifetime Value (LTV) Customer lifetime value or user lifetime value is a kind of prediction of the net profit that we expect from the entire relationship with a customer. This is calculated by keeping…show more content…
This is calculated by dividing customer total by marketing budget, such as used for advertising. This should be viewed for special situations like when the cost per acquisition is in relation to specific type of customers you attract as meant by the path-to-basket and lifetime value. In this method of advertising, the advertiser has to pay only when an advertisement gets an acquisition. Unless the purpose is met, the advertiser doesn’t have to pay. In order to properly identify what are we going to spend for a particular marketing channel, it is necessary to understand how much we have to spend to get a new customer and ultimately the lifetime value. Loyalty Factor The loyalty factor is a particular metric or a mix of metrics that dwell and trigger spending levels and customer lifetime value. It calculates the measure of customer loyalty and the conditions that influence this loyalty. Loyalty factor is also termed as RFM, as in Recency, Frequency and Monetary Value, which means how recently did the customer make a purchase, how frequently do they purchase and how much are they willing to spend. This is retrieved by multiplying the count of purchases over the past year by total sales per months since last purchase. When we calculate loyalty scores for customers and group them, the brand can better focus on marketing strategies thereby improving conversions. In return this will also lead to customer lifetime…show more content…
Some may make a purchase and some may not. Some others may come later and make a purchase. This metric is a good indication that they are interested in your offering beyond the initial visit. Loyalty is never easy to achieve. Returning visitors shows that the outlet is in the customers mind for future interests. Calculating the metrics right will help us analyze we are keeping eye on the right things that matter and once measured helps retailers t improve their business. Footfall This is the most vital metric as far as retail business is concerned. This helps in calculating most accurate conversion rate of store visitors into potential customers. We can identify the number of visitors over a certain period of time or season. There are special devices that show the footfall numbers and this can be compared with the number of visitors who purchased. We can achieve maximum store potential with reliable calculation metrics. We can benchmark the store progress to competitors or locations. We can see marketing campaigns increasing conversions. Customer Path

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