Velocity is a simple concept in marketing. Here is the metric:
- Velocity = (Life to Date Orders) / (Time on the Customer File).
- Customer has 2 life-to-date orders, and has been on the customer file for five months.
- Velocity = (2) / (5) = 0.400.
- Customer has 3 life-to-date orders, and has been on the customer file for thirty-six months.
- Velocity = (3) / (36) = 0.083.
High-Velocity (two purchases in two months)? A very high probability of purchasing again next month.