What Are the Key Metrics to Identify a Loyal Customer?

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Recurring customers are the bloodline of successful business, because new customers are always more expensive to acquire. By monitoring customers sales & behaviour a profitable automated campaign can be developed. By analysing sales and behaviour you can use tactics such as offering vouchers, discounts or free reports of what they are interested in.

Key metrics help you understand how customers interact with your brand.

  1. Lifetime Customer value(net profit per customer).  Check if customers are giving you the same, less, or more revenue year after year. Furthermore, you can dissect this data to determine the average number of purchases a customer has made in the past year. Combined, this data allows you to predict the total revenue you can earn from the customer. Use this information to fine-tune your marketing campaigns to ensure you see a return investment. 
  2. Recency. By studying how long it’s been since specific customers have made a purchase, you can categorize them into “New,” “Engaged,” or “Inactive.” This data is important when you are planning an automated email campaign. When sending emails based on a customer’s recency, you’re more likely to increase conversation rates.

    Since these customers are already recurring, email marketing towards them should be focused on your latest offerings and products you think they might enjoy, not a return visit.

  3. Frequency. Monitoring the frequency of orders from a customer allows you to predict when a customer is likely to make another purchase. For instance, knowing that a customer orders, on average, every 104 days will allow you to plan automated emails promoting products that interest that particular client. Typically, less than 25 percent of ecommerce business customers are repeat clients. Using this data to craft a marketing campaign can help improve retention and purchase frequency.