Shopify articles - Page 31

Use customer lifetime as your customer retention metric

Sometimes it makes sense to use alternative metrics for customer retention. Repeat Purchase Rate and Lifetime Value are great but are often hard to monitor. They move very slowly for most stores, especially when you have a lot of historic data. You can look at only the recent data but...

Use Repeat Purchase Rate to predict a cohort's future ordering

Using the Repeat Purchase Rate metric with customer cohorts can be a useful lens to predicting future customer orders. When you're evaluating cohorts of customers, it's important to include their Repeat Purchase Rate (RPR) like Repeat Customer Insights does. Cohort behavior typically looks more at how much they've spent, how...

The bitterness of losing long-term customers

Roses are red Violets are blue, Long-term customers are sweet Except when they leave you. If it weren't for customer defection, business would be so much easier. You'd just need a good product, a way to get the word out, and a way to deliver. Since losing customers is a...

Use your low-quality customers to better understand your loyal customers

The beauty of using RFM for customer analysis is that it segments all of your customers. Even the ones with low-quality behavior. These are the customers who only bought once, spent a tiny amount with their order, or ordered so long ago they forgot about you. They're unlikely to ever...

Track your Repeat Purchase Rate as you work on customer retention

While you're working on customer retention, tracking your Repeat Purchase Rate is key. The Repeat Purchase Rate measures how many customers come back for at least a second purchase. A rate of 0% means no one comes back, 50% means half of your customers come back, etc. The whole point...

Test customer improvements well in advance

In my first software development job I was a tester. I knew programming well enough but my manager wanted me to see the testing side first. That's where I learned how important early and realistic testing can be. Especially when it comes to data. Those lessons have carried through all...

Confusing customers with your subject lines

The previous version of my website ran on WordPress. I used a hosting company that would automatically update the code for me when WordPress released an update. Unfortunately, the host's upgrade email fell way short of the mark: Subject: Upgrade to WordPress 6.1.1 Complete "Ah great, all handled by the...

Ending a customer loyalty program

Not every loyalty program will be successful. Maybe it's not producing the results you like, costs too much to administer, or you just want to simplify things. The problem is, if you just stop then you'll upset some customers who were using it. Especially if you used a points or...

Measuring customer lifetimes

I've been wanting to write about analyzing customers based on their customer lifetime (how long they've been ordering). I've written on cohorts quite a bit but cohort analysis only covers the time of a customer's first order. It doesn't deal with their lifetime as a whole. Knowing a customer first...

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