For one brand, April 2020 - May 2020 was a bumper crop ... a COVID-bump of epic proportions. The CFO tallied up the receipts, and bonuses were paid out.
But what happened next?
This table looks at recency/frequency of the customers acquired during those two months.
The results aren't bad. There is an enormous glut of customers who haven't bought since (yellow colored cells).
About 7% of the customers are still active within a three month window (i.e. they purchased within the past three months). That's quite good, to be honest.
It is really hard to keep your customer base active and purchasing regularly. The natural inclination of customers is always decay - they gradually slip away and become harder and harder to reach.
Your marketing department has three key functions, ranked in order of importance.
- Create Awareness that leads to first-time buyers.
- Develop first-time buyers into subsequent purchases.
- Harvest profit from loyal customers.
This company did (1) and (2) pretty darn well, didn't they?
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