Awhile back, a merchant was bragging about how most of their customers are repeat customers and so they can get away with not writing any product content for their store. Customers already knew everything about their products so it was just a quick transaction for them right?
But then they analyzed their data and found that no, the majority of their customers were not actually repeat customers. Only 30% were.
(30% is good for their product line but no where near the majority)
This realization shook them. They've been basing their entire business on the idea that customers were extremely loyal and they were a known name brand. Turned out that most customers were new, getting lost, and struggled to buy (and that's the ones who actually were able to checkout).
It's important to measure and really know your basic customer numbers. Don't assume, know.
You know how much in sales you make on an average month. You know how much your highest paid employee makes. You know how much you spend on shipping each month.
Learn two more numbers and you'll have a better handle on your customer base:
- What percentage of your orders are from repeat customers? (Repeat Purchase Rate)
- How long of a delay is there in-between orders? (Average Latency)
Know those and you'll have a better grasp on how your customers behave. You can either calculate it by hand every month or use Repeat Customer Insights to measure it for you automatically.
If you don't know those, you and your staff might be making some bad assumptions about how your customers actually behave.
Learn which products build the best customers
Find which products create the most valuable customers with the First Product Analysis in Repeat Customer Insights. It goes beyond your best sellers by looking at long-term purchasing and retention behavior of your customers.