The Opportunity

Ecommerce divisions often find early fast growth that plateaus with lower than expected profits.

The key to unlocking another wave of growth often resides deeper within the processes of marketing, merchandising (buying) and inventory management.

These planning processes are often de-linked causing waves in inventory, out-of-stocks, lost demand as well as over/under spending in digital marketing (and print, catalog, other).

What We Do

TPG’s ecommerce demand generation approach provides a redesign of planning process and links marketing planning through to inventory requirements unlocking new levels of growth and profit. A partial list of our ecommerce demand generation consulting services include:

  • Ecommerce P&L: A specific pro-forma P&L that identifies all of the costs of this particular channel and the final EBITDA and Net Profit of the channel. This is a critical anchor to future elements.
  • Transaction Economic Model: A financial what-if modeling tool identifies the profit generated by the average basket of goods purchased via ecommerce. Input into accurate marketing investments.
  • Lifetime Value Analysis: This analysis identifies value generated by an acquired customer over time. LTV is a fundamental for all customer acquisition to ensure the company remains profitably aggressive.
  • Customer Model: A marketing and demand planning tool to forecast the ecommerce division. The inputs are current customer trend behaviors and spending levels to drive very robust forecast of the sales of the business. This forecast identifies number of shoppers to be acquired or retained for required sales.
  • Marketing Channel Plan: This is a marketing channel planning and what-if modeling tool to define marketing costs across channels used to drive demand including email, direct mail, paid search, social media.
  • Demand to Inventory Plan: With demand as input, this tool builds up to total inventory to meet goals for turns and availability then breaks it down to categories and brands. TPG’s approach is to identify what is uniquely selling via ecommerce versus using total store data.
  • Ecommerce Demand Planning Process and Calendar: After review of current planning processes, timing and outputs, TPG designs a new planning calendar, inputs and outputs, key meetings and process steps with sign-offs. This ensures that the overall work can be supported ongoing.
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