April 08, 2021

The Master Sheet: Customer Value

Here's the Master Sheet we've evaluated for more than a week.

Today we'll look at the portion of the table on the far right, colored in yellow. Here I look at annual repurchase rates based on the life-stage the customer is at. Say a customer has a recency = 6 months and frequency = 2. This customer has a 32% chance of buying again in the next year.

When a customer becomes loyal, I like to look at "how long" the customer stays loyal. For this brand, the customer achieves a 60% chance of repurchasing again after a 5th purchase. Read down the 5x to 6x column on the far right side of the table. How many months does the customer stay above the 60% "loyalty" threshold?

Two (2) months. 

That's it.

This company has some work to do if it wants to maintain a loyal customer base, doesn't it?

This is how we use the Master Table. The Master Table tells us all of the Customer Development secrets needed to determine where the marketer should invest time, energy, and money.

In this case, the marketer has several opportunities.
  1. A Welcome Program.
  2. All Buyers Purchase for a Second Time.
  3. Recently Minted "Loyal" Buyers.
Now go get busy creating your own Master Sheet. And if you don't have the resources to create your own table, contact me (kevinh@minethatdata.com) for project pricing (click here).

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