The Health Check is designed to exam all the main aspects of your business. It does require a considerable amount of data going back at least 12 months. If you do not have access to good data you probably need other advice such as Reporting and Training.
The project starts with my detailed list of data requirements, sent to you in advance of our first meeting. When this data is ready I will visit and spend a full day with you and your team discussing the business and the prepared data. Following that visit I will analyse and present my results and recommendations in a full written report. We would meet once more to discuss that report.
The Data Requirements document covers the following areas:
1. Customer and Prospect Database – analysed by Recency, Frequency and Monetary.
2. Merchandise – the effectiveness analysis of recent catalogues, determining what customers want to buy from you. This also looks at price points, performance of repeated items and margins.
3. Stock - are there issues maintaining best selling items in stock and clearing out slow lines?
4. Catalogue Costs – the cost of getting a catalogue into the home, broken down into detailed components and compared to my own benchmarks
5. Circulation & Recruitment Performance – how much does it cost to get a new customer and what profit does a customer generate?
6. Fulfilment Costs – the cost of fulfilling orders, broken down into constituent parts and benchmarked
7. General & Administration Costs – the costs of managing the business
8. Overall Profitability – cost and sales lines are benchmarked against industry standards to determine scope for improvement. The wider issues surrounding your home shopping business will also be considered.
The report will contain a list of recommended actions following the review of your business.
The Health Check is priced at a fixed amount to cover all the work described above from preparation of the data questionnaire to the final presentation.
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Copyright ©2006 Ray Morris-Hill Associates