{"id":298520,"date":"2025-06-17T06:32:52","date_gmt":"2025-06-17T06:32:52","guid":{"rendered":"https:\/\/peraltafinancing.com\/analytics\/kevin-hillstrom-minethatdata-file-power\/"},"modified":"2025-06-17T06:32:52","modified_gmt":"2025-06-17T06:32:52","slug":"kevin-hillstrom-minethatdata-file-power","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=298520","title":{"rendered":"Kevin Hillstrom: MineThatData: File Power"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div id=\"post-body-6959612401299841689\" itemprop=\"description articleBody\">\n<p style=\"text-align: justify;\"><span style=\"font-family: arial;\">I go through phases where I spend a lot of time talking about File Power. Then I go through phases where I read marketers babbling about nonsense (&#8220;<i><span style=\"color: #b45f06;\">your customers simply aren&#8217;t engaged in today&#8217;s complex media ecosystem<\/span><\/i>&#8220;) and I&#8217;m inspired to reintroduce the topic.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: arial;\">Let&#8217;s put this in the simplest terms possible.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: arial;\">Say you have 100 customers. In the next year, 30% will buy again, spending $200 each.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: arial;\">Meanwhile, you acquire 70 new\/reactivated customers each year, each spending $100.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: arial;\">Here&#8217;s how you generate business:<\/span><\/p>\n<ul>\n<li><span style=\"font-family: arial;\">100 Customers * 0.30 Rebuy Rate * $200 per Repurchaser = $6,000.<\/span><\/li>\n<li><span style=\"font-family: arial;\">70 New\/Reactivated Customers Spending $100 Each = $7,000.<\/span><\/li>\n<li><span style=\"font-family: arial;\">Total Sales = $6,000 + $7,000 = $13,000.<\/span><\/li>\n<li><span style=\"font-family: arial;\">Next Year&#8217;s 12-Month Buyer File = 100 * 0.30 + 70 = 100.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-family: arial;\">This business is at an equilibrium point. As long as Merchandise Productivity and\/or Marketing Productivity and\/or Creative Productivity don&#8217;t change, the business will generally book $13,000 per year and 100 customers per year.<\/span><\/p>\n<p><span style=\"font-family: arial;\">This is the point in the story where the company hires a new CFO, and the CFO thinks the brand is spending too much money on marketing &#8230; &#8220;<i><span style=\"color: #bf9000;\">our ROAS is too low<\/span><\/i>&#8220;! The CFO demands that the brand spend less. Most of the marketing spend aligns with new\/reactivated customers, but some of it causes existing customers to repurchase. The marketing team carries out the wishes of the CFO. Here we go:<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li><span style=\"font-family: arial;\">100 Customers * 0.28 Rebuy Rate * $200 per Repurchaser = $5,600.<\/span><\/li>\n<li><span style=\"font-family: arial;\">50 New\/Reactivated Customers Spending $100 Each = $5,000.<\/span><\/li>\n<li><span style=\"font-family: arial;\">Total Sales = $5,600 + $5,000 = $10,600.<\/span><\/li>\n<li><span style=\"font-family: arial;\">Next Year&#8217;s 12-Month Buyer File = 100 * 0.28 + 50 = 78.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-family: arial;\">We&#8217;ve arrived at the penultimate moment in the discussion. The year prior, we could expect 100 customers to generate $6,000. This year, we can expect 78 customers to generate $4,680. The brand lost $1,320 of &#8220;File Power&#8221;. If the brand elects to reverse the decision made by the CFO, sales do not return to prior levels.<\/span><\/p>\n<div style=\"text-align: justify;\">\n<ul>\n<li><span style=\"font-family: arial;\">78 Customers * 0.30 Rebuy Rate * $200 per Repurchaser = $4,680.<\/span><\/li>\n<li><span style=\"font-family: arial;\">70 New\/Reactivated Customers Spending $100 Each = $7,000.<\/span><\/li>\n<li><span style=\"font-family: arial;\">Total Sales = $4,680 + $7,000 = $11,680.<\/span><\/li>\n<li><span style=\"font-family: arial;\">Next Year&#8217;s 12-Month Buyer File = 78 * 0.30 + 70 = 93.<\/span><\/li>\n<\/ul>\n<\/div>\n<p style=\"text-align: justify;\"><span style=\"font-family: arial;\">Even when the brand reverses direction, sales do not get back to prior levels, and customer counts are short of where they used to be.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: arial;\">This is File Power.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: arial;\">The decisions you make today have a lasting impact. They don&#8217;t just impact 2025, they impact 2026 and 2027.<\/span><\/p>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>I go through phases where I spend a lot of time talking about File Power. Then I go through phases where I read marketers babbling about nonsense (&#8220;your customers simply aren&#8217;t engaged in today&#8217;s complex media ecosystem&#8220;) and I&#8217;m inspired to reintroduce the topic. Let&#8217;s put this in the simplest terms possible. Say you have [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12033],"tags":[8841,13773,13772,13774,1783],"dealstore":[],"offerexpiration":[],"class_list":["post-298520","post","type-post","status-publish","format-standard","hentry","category-analytics","tag-file","tag-hillstrom","tag-kevin","tag-minethatdata","tag-power"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Kevin Hillstrom: MineThatData: File Power - Som2ny Network<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fivemor.com\/?p=298520\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Kevin Hillstrom: MineThatData: File Power - Som2ny Network\" \/>\n<meta property=\"og:description\" content=\"I go through phases where I spend a lot of time talking about File Power. 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