Detecting when customers defect and go elsewhere can be more of an art than a science. For most Shopify stores, there isn’t a cancellation that marks when a customer defects. They just stop showing up. That’s why most defect detection relies on measuring how long it’s been since their last order. If it’s longer than …
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 …
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 …
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 …