Recall that I've collected the twelve analyses that you consistently get the most use out of ... these are the analytics you take action on, they are the analytics that you ask the most questions about on video conferences.
We'll start with the Life Table. The Life Table measures how customers convert from a first purchase to a second purchase ... 2nd to 3rd purchase ... 3rd to 4th purchase ... 4th to 5th purchase.
It can be hard to interpret a nerdy table ... so let's look at a graph that measures when this brand (Beans - The Internet's Only Variety Store) converts a first-time buyer to a second purchase. Tell me what you observe.
Do you see the problem?
I sure do!
Anytime incremental monthly rebuy rates (i.e. chance of buying in month six given the customer has not purchased in months 0/1/2/3/4/5) dips below 1.0%, the customer is unresponsive/dormant.
When does a first-time buyer become unresponsive?
- Three Months After a First Purchase!
- The brand sells merchandise that is repurchased seasonally, negating timeframes when other brands are able to convert the customer to a second purchase.
- The marketing team does not implement the right tools to convert the customer to a second purchase (i.e. batch-and-blast campaigns with the same presentation to all customers, poor paid search campaigns, poor organic social efforts).
- 1x Buyer: 15.5% Rebuy Rate.
- 2x Buyer: 25.5% Rebuy Rate.
- 3x Buyer: 34.8% Rebuy Rate.
- 4x Buyer: 44.7% Rebuy Rate.
