New products and the relative importance of trial and repeat
Recently there have been a number of questions about new products and especially the relative importance of trial and repeat. Analysis across 3 European countries and 60000 new SKUs continues to show the critical importance of getting as many buyers as possible.
Top new products have 3 times more buyers than less successful launches
Comparing the top 1000 most successful launches in a country (based on value sales) with the next 1000 launches, we see that the most successful launches have at least 30% more buyers. Within the top 1000 launches the difference is even higher: the top 250 launches have up to 3 times as many buyers as the bottom 250.
Top new products have up to 80% higher repeat buying in the first year than less successful launches
Comparing the top 1000 most successful launches in a country (based on value sales) with the next 1000 launches, repeat buying is slightly higher. Within the top 1000 launches the difference is greater: the top 250 launches have 50% higher repeat than the bottom 250.
Top new products have only slightly higher buying frequency than less successful launches
Comparing the top 1000 most successful launches in a country (based on value sales) with the next 1000 launches, shows that successful launches have only slightly higher buying frequency even for the top 250 launches