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: customer purchase 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 …
Do the work today for repeat customer success in the upcoming months
The work you put in today with customers, will benefit you in the upcoming months. Spending time to connect, answer questions, or write emails to new customers and newly ordered customers is one of the best ways to build repeat customer behavior. Ignored or confused customers might not return an order but they definitely won’t …
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 …
Planning when to use harder sales messages in a campaign
Some marketing campaigns include an arc where each contact gradually moves the customer along a path. Welcome Campaigns use this heavily, along with email courses (“opt-in to learn 9 ways to make your widgets go bang”). In those it’s usually clear when you should start selling harder. Usually near the end once the customer has …
What repeat customer metrics to compare at year-end
Going into the end of the year you’ll want to compare a few metrics to last year and the year before to see how things have changed. Total sales Average Over Value – good if it stays consistent or has gone up. Great if that happens while total sales have gone up. Repeat Purchase Rate …
How Average Latency is underused by Shopify stores
Recently I added the Average Latency metric to Repeat Customer Insights. Latency is the time between events for a customer, specially purchases. For example, if Sally placed two orders 10 days apart then their Latency would be 10 days. The app has always reported on the Average Latency in the order sequences, e.g. 10 days on …
Purchase Latency: measuring the time between repeat orders
Recently a Repeat Customer Insights customer asked: I want to find out the average time between repeat orders? The average time between orders would be in the Customer Purchase Latency Analysis. Latency is the the delay between events so purchase latency is the delay between purchases. e.g. 2nd order is 46 days on average after the …
Using customer behavior data to decide when to start your holiday marketing
With the summer winding down, murmurs of the Black Friday / holiday season have started up. While you should definitely be preparing ahead of any busy season, when to actually scale up your marketing is different for each store. One easy way to ballpark when to start is to look at your Customer Purchase Latency. …