Knowing your customers and their buying behavior is key for every successful business, and for that we have the Customer Economics Report. It can help you determine the average value of your main KPIs over time to outline the lifetime behavior of your customer base. So let's take a look!
Definitions
The Customer Economics report shows the average of several KPIs throughout the different months of a customer's lifetime. It starts with the first order date, and it shows the evolution for the upcoming months.
But before we dive into the data, let's start with some definitions:
| Lifetime | Number of past months after the first purchase date |
| Customers | Number of customers having the specified lifetime |
| Customers with Repurchase | Number of customers who repurchased in the specified month of their lifetime |
| Average Orders | Average number of orders per customer during their lifetime |
| Average Gross Revenue | Average Gross Revenue generated per customer during their lifetime |
| Average Net Revenue | Average Net Revenue generated per customer during their lifetime |
| Average Items Sold | Average Gross Items purchased per customer during their lifetime (before product returns) |
| Average LTV | Average Lifetime Value per customer |
Use Cases
If there are not enough data points for a Customer Lifetime Value calculation, this report helps you to project how much turnover and orders a customer makes over time.
On this basis, you can identify what a customer's maximum cost should be when acquiring them.
This report allows you to identify the behavior of your average customer after acquisition: for the upcoming months we can see how many orders they place, how much money they spend, and how many articles they buy.
How to Get More Details
The Customer Economics report is shown as a line chart followed by absolute figures for all KPIs.
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