The Migration Matrix

What does this mean? Based on the data, the quality of prospects could’ve declined. It could be the way these prospects were acquired. How were they promoted? Was there a discount offered on a first purchase when the prior year’s acquisitions weren’t?

Many catalogers are reluctant to offer discounts to prospects, because such offers can condition new customers to buy only when there’s a sale. As a result, housefile performance will suffer and consequently, you’ll find yourself in a vicious cycle of having to frequently promote just to stay even with your past performance. Productivity-wise, this is troubling, since discounts hurt your gross margins and put pressure on profit and loss contributions.