August 28, 2022

Yup, They Matter

Have you ever looked at a cohort of loyal buyers and observed what happens over the next two years?

Here's a cohort of customers who purchased for the fifth time two years ago. What did these customers accomplish?

  • 86% purchased again over the next two years.
  • Those who purchased again bought 4.18 times over two years.
  • 65% were still 12-month active after two years.
So yeah, loyal buyers matter. They're printing profit for your business.

And interestingly, within two years 35% of this cohort of loyal buyers have faded away. The company I'm analyzing here is really, really good at developing customer loyalty - likely far better than your company is at developing customers who are loyal. But this company is going to ultimately lose most of the loyal buyers as well.

You take the profit you get from loyal buyers and you reinvest it in new customers ... of which 10% will become ... loyal buyers!

Customer Development. It matters.

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