Practicology created geographical radius bands from each of Rapha’s Cycle Clubs, and using its multichannel data identified customers who lived within each banded area. We assessed how online-only and multichannel behaviour changed as a result of a store opening; including average order value, annual value, lifetime value and churn.
There were some indicators that store openings did have an effect on behaviour, but fast-growing sales make the causes of underlying trends harder to attribute; so we drilled down and identified a number of false-positive effects.
For example, we were able to strip out the impact of promotional activity on online sales, as promotions created large peaks and troughs that masked the real relationship between store openings and customer behaviour.
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