The Product Analysis looks at what products a customer orders to see how those products contribute to becoming a repeat customer.
Just as different marketing channels will determine different customer behavior, some products tend to create different customer behavior. Some are more likely to create repeat customers and some are likely to create your best customers.
Each customer's orders are analyzed and the products (and variants) purchased are extracted out for measurement. Then as the customer comes back to buy again (any product), their orders are allocated to the measured products. Over-time, this shows the long-term behavior impacts of those products.
Metrics on those orders are then collected and shown for each product:
- Average Order Value (AOV)
- Repeat Purchase Rate (RPR)
- Average Lifetime Value (LTV)
- Total Lifetime Value (LTV)
- Number of orders
- Number of customers
- Number of one-time customers
- Number of repeat customers
Of these, the Total Lifetime Value and Repeat Purchase Rate are the most important. The Total Lifetime Value shows how valuable the customers are, and thus which products create the best customers. The Repeat Purchase Rate shows how likely customers are to reorder.
This information is important when deciding which products to feature, promote, and which to cancel.
The Variant Analysis works the same way but measures and tracks the product variants instead of the products. Depending on your use of variants, this could be a more refined view of the data.
It can also show you which variants aren't performing as well as others which could help to reduce your production costs.
Analyze your customer behavior
A quick and automatic way to measure your customer behavior is with Repeat Customer Insights. It'll automatically import your Shopify data and run a number of analyses to highlight different customer behavior.