Tag: average latency

Detecting customer defection with Customer Purchase Latency

Though RFM can be used to detect customer defection, sometimes it’s too slow to notice the change. In order for an RFM value to change it would require your customer to delay orders for long enough that they fall into the lower 40% of your customer base for Recency. That can cause RFM to lag …

Read more

For more repeat customers, focus on decreasing Customer Purchase Latency

When trying to increase customer reorders, you’ll want to try things that improve customer behavior. One behavior metric that works well is Customer Purchase Latency. This is the time between orders, usually a number of days. If customers order every 100 days on average, you make a change, and they are now ordering every 90 …

Read more

Using Average Latency for customer defection detection in Shopify

Recently a Repeat Customer Insights customer was asking about customer defection. By default, RFM is used for detecting customer defections (specifically, low Recency scores) but other metrics can be used too. Average Latency is a good next step for defection detection. It can add a finer view on if a customer is active or defected …

Read more