First order take rates tell us about the relative popularity of different options. For example, consider a small set of possible pizza toppings.
Topping
Take Rate
Pepperoni
40%
Mushrooms
20%
Pineapple
3%
Canadian Bacon
3%
Green Peppers
10%
Customer buying patterns really start with second order take rates, which tell us about pairs of options, or toppings. Second order take rates tell us about relative [...]
In today’s post, John Sloan talks about challenges dealers face in ordering inventory that best matches customer demand.
Emcien: Describe the Chrysler-Emcien initiative that examined dealers’ struggles with complexity in the ordering process.
JS: In a soft “push” market where volume is driven by heavy incentives versus the merits of the brand / model, managing cost is [...]
In today’s post, we talk to Mark Gottfredson about product complexity and customer choice.
Emcien: It’s natural for companies to add products and features to keep customers happy. What are the downfalls?
MG: The challenge of adding complexity is it’s the most natural thing in the world. Marketing comes up with new ideas for products or configurations [...]
In any manufacturing company that builds configurable products, there is a lot of discussion around what product complexity is. What’s interesting is that when times are good and there are lots of sales, the discussion is usually around how to simplify or streamline with the goal to sell more product even faster, that complexity is [...]
