Once you know who your loyal customers are (say though customer segmenting or loyalty analysis), then you can measure how they are different than your regular customers.
Goods ways to do this are to compare your overall customer performance to your loyal customer segment:
- Average Order Value
- Average Lifetime Value
- How long in-between orders (Average Customer Purchase Latency)
- Average Number of Orders
- Repeat Purchase Rate
Oftentimes you'll find your loyal customers eclipse your average customer. It's not uncommon for loyal customers to be 3x, 5x, or even 10x better than the average.
These performance figures are what you should keep in mind when building customer retention initiatives. Figure out how to repeatedly level up an average customer into a loyal customer and you'll see your store get better from month-to-month.
Eric Davis
Learn what your customers are actually doing instead of just guessing
One of the best ways to build a sustainable business starts by getting your customers to come back. Mastering that simple process can be difficult, but builds a lifelong business.
Repeat Customer Insights can help you understand your customer's behavior. With its collection of behavior reports, you can see what they're actually doing instead of guessing and having your efforts fall flat.