RETAIL REVENUE GAP INDEXSM

A proven approach to identifying missed opportunities to drive revenue, engagement and loyalty with customers.

the backstory
the index
5 "cores"

The Revenue Gap IndexSM

We analyze hundreds of retailer marketing programs (prospective clients) every year using the RGI methodology. For each quarterly Revenue Gap Index, we will select a representative sample of 25 of those prospects and share the findings of our analysis.

  • Each Index will include summary findings as well as deep-dive forensic analysis of several actual retailer programs.
  • The analysis provided should help readers better recognize deficiencies in their own programs and allow them to focus resources and investment to the most impactful area.
  • Because the index is specifically intended to highlight shortcomings and gaps in a retailer’s program, all participants will remain anonymous.
  • The RGI itself comprises 78 discrete measurement points clustered into five “core” areas that constitute the essential foundation of any successful email/cross-channel program.
  • The selection and weighting of these measurement points are based on the degree to which that interaction drives revenue.
  • Our experience across more than 1,000 retail programs helps to inform these weightings. For example, we know that a retailer with a single-wave Welcome series is missing 15-20% of the revenue opportunity for that campaign – but that percentage approaches zero by the fourth wave. Similarly, less than 1% of customers will visit a retailer’s Preference Center – but 95% of customers will open an order or ship confirmation email (and therefore integrating personalized product recommendations into those emails will drive substantial revenue gains).
  • Each of these measurement points is a clearly observable behavior or interaction on the part of target retailer (exactly what your customer would experience). Unfortunately, this “observability” requirement disallows us from including additional areas (such as the use of customer insights and analytics) into the framework.