One metric to watch for repeat customer performance

For repeat customer performance, Profit from repeat customers is the best metric to watch.

Being based on profit, it's a core business metric. Direct costs to acquire repeat customers will tend to be lower than new customers. Indirect costs could be higher as repeat customers could use a greater portion of overhead costs as your loyalty, retention, and other programs are long-lived before you see a repeat order.

You'll know the process is working well as long as it's positive, trending up, and a good enough business return.

If costs are difficult to separate and calculate for repeat customers, revenue from repeat customers is a good alternative. As long as you watch your expenses and margin, segmenting your revenue into new/repeat customer can show you the health of your business as a whole.

Eric Davis

Do your holiday customers over or under-perform?

Big sales numbers look great in November and December but they can hide your true performance. Get the facts on how your winter holidays stack up with Repeat Customer Insights.

Learn more

Topics: Metrics Profit