Once you know who your loyal customers are (say though customer segmenting or loyalty analysis), then you can measure how they are different than your regular customers.
Goods ways to do this are to compare your overall customer performance to your loyal customer segment:
- Average Order Value
- Average Lifetime Value
- How long in-between orders (Average Customer Purchase Latency)
- Average Number of Orders
- Repeat Purchase Rate
Oftentimes you'll find your loyal customers eclipse your average customer. It's not uncommon for loyal customers to be 3x, 5x, or even 10x better than the average.
These performance figures are what you should keep in mind when building customer retention initiatives. Figure out how to repeatedly level up an average customer into a loyal customer and you'll see your store get better from month-to-month.
Eric Davis
Measure which customers you're retaining and which you're losing
In order to keep your best customers, you need visibility into what's going on with them. Repeat Customer Insights will help you track down where you're losing customers and how to better target new ones.