Repeat Purchase Development

Striking the right balance between new and existing customers can make you a rocket – or leave you running in place. The thing is, every healthy business should grow based on repeat purchasers because this is the way they will eventually manage to increase turnover.

So let's take a look at your Repeat Purchase Development!

Definitions

Before you dive into data analysis, let's make sure that we are on the same page with some definitions:

By default, Gross Revenue definition excludes Shipping Revenue, Discounts, and VAT, while Net Revenue also excludes Product Returns.

The RX Forecast™ functionality is also available: by clicking on the RetentionX icon, you can display three different scenarios for the upcoming months based on machine learning predictive analysis.

Use cases

Since your resources are limited, you should know your Repeat Purchasers balance in order to be able to correctly set the percentage of costs, time, and effort spent on new customers compared to those you already have. In order to achieve healthy growth with your business, you should always grow in existing customers and not only add more and more new customers. Existing customers matter as they are:

• Already familiar with you and your product
• Eager to give feedback or share concerns
• Receptive to your marketing efforts
• Much easier to convert or up-sell
• Willing to tell their family and friends about you

It is preferable to grow despite constant new customer numbers by proactively increasing the lifetime value of your customers. For this, you can check LTV reports such as Daily LTV and LTV Cohorts.

If your existing customer numbers are declining, it is worth analyzing when exactly in the life cycle you are losing your customers to focus on them explicitly. Take a look at the Repeat Purchase Rate report and kick off your Reactivation Campaigns when the next order is overdue (based on the Time Between Orders report).

What you need

For this report to work properly, the following data must be imported:

• Order ID
• Order Date
• Stock Keeping Unit (SKU)
• Items Sold
• Item Price
• Cost of Goods Sold
• Customer ID
• Discounts
• VAT
• Shipping Revenue
• Product Returns
• Product Return Dates

How to get more details

The Repeat Purchase Development report includes a color-coded column chart. In there, you can see both absolute and relative figures for each KPI depending on if it is a New or an Existing customer.

For running observation periods that have not yet been completed, e.g. the current week or month, RX extrapolates the run rate based on the historical data. 

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