Segmentation by Discount Use

Purpose

Make Segmentation by Discount Use segment assignments to all card identified shoppers in the timeframe of the report who do not violate the Abusive Shopper number of transactions per week. SegmentationByDiscountUse

The calculation for the assignment takes into account the number of times items were purchased on markdown as a percentage of the total number of item purchases (basis).   Segments are assigned by the basis

  • <=25 then Low Discount Usage
  • between 26 and 35 then Low-Mid Discount Usage
  • between 36 and 50 then Mid Discount Usage
  • between 51 and 60 then Hi-Mid Discount Usage
  • else Cherry Pickers

Instance

A Quarter (3 month timeframe)

Rows

The segments

  • Low Discount Usage
  • Low-Mid Discount Usage
  • Mid Discount Usage
  • Hi-Mid Discount Usage
  • Cherry Pickers

Columns/Metrics

  • #HH – Count of distinct households assigned to the segment.
  • %HH – Count of distinct households assigned to the segment expressed as a percent of the total.
  • Cume %HH – Cumulative percentage.
  • $ – Total dollar spend for the households in the segment in the timeframe of the report.  Dollar spend is the taken from the transaction log as the List Amount + Tax Amount – Markdown Amount.
  • % of $ – the Total Dollar Spend expressed as a percentage of the total.
  • Cume % of $ – Cumulative Total Dollar Spend
  • $/HH – The average dollar spend per household in the segment.
  • $/Trip – The average dollar spend per trip, or transaction.
  • Trips/Week – The average number of times a household in the segment makes a shopping trip in a week.
  • % Distinct Items on Discount – Number of item purchase instances where the item was on discount divided by the total number of item purchase instances.
  • % Item Quantity on Discount – Count of items purchased on discount divided by the total count of items purchased.
  • % of of Total Discounts – The discount (markdown) dollars used by this segment, expressed as a percentage of the total discount dollars used.
  • Basket Discount % – The average percentage discount realized per transaction.
  • Use of Discounts Index – 100 * (% of discounts used by the segment) / (% of households in the segment), where 100 would represent a “fair share” use of discounts.
  • Discount $ – The sum of discount  (markdown) dollars used by the segment.
  • Value Index – 100 * (% dollar spend by the segment) / (% of households in the segment), where 100 would represent a “fair share” of dollar spend.