This table shows the conditional probability of a customer repurchasing, given that the customer in the frequency band has not repurchased in the previous "x" months. Look at this beautiful retention table!
The secrets of your business are outlined in this table.
For instance, you've heard me harp incessantly about the first three months following a first order being critically important in the development of a customer. That fact reveals itself in this table ... look down the "1x Buyer" column ... in this example, the customer has a 14.0% chance of buying again in the first month, then 7.8% in month two (conditional on the fact that the customer did not purchase again in month one), then 4.9% in month three. From there, the customer slowly fades away.
If you knew you had three months to make a difference with new buyers, would you do anything differently? If the answer is "yes", would the company you work for allow you to do anything differently? The answer is frequently "no", and that's why ecommerce (outside of marketplaces) is so darn hard ... customers churn too often, mostly due to a failure to imagine an experience for the new customer within three months of acquisition.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.