🤔 What is the Purchase Frequency Report?
Customer loyalty is a tremendous competitive advantage for companies that can keep their customers coming back for more. Some of the most loyal customers are those who make repeat purchases with the same company, indicating that they see value in doing business with that company over and over again.
As a seller, you want to know as much as possible about your sales to improve your performance and increase revenue. One of the best ways to understand which of your sales data is important is through a Purchase Frequency Report.
This report will help you understand which of your sales are coming from repeat customers, and which of your customers are coming back to buy again.
⚖️ How is the Purchase Frequency Report calculated?
To generate the Purchase Frequency Report:
- Take the total number of orders;
- Divide the number of orders by the number of unique customers in a given period of time.
Usually e-commerce sellers prefer periods up to 12 months or a quarter.
Purchase Frequency = Total number of orders / Number of unique customers
If you’d like to get instant access to the accurate Purchase Frequency Report, Synder Insights is what you need! This feature will automatically fill the necessary numbers into the formula above showing you the final result – your purchase frequency.
The all-in-one source of truth calculates the most significant financial metrics for your business in no time and keeps you updated about your business analytics via email so that you can see how your strategies are working.
🔎 What do these numbers tell us?
The Purchase Frequency Report provides insight into how often a customer makes a purchase in a given period of time. It’s a powerful tool because you can pinpoint your customers’ most lucrative spending habits.
A high purchase frequency can indicate a business is operating smoothly and managing cash efficiently. A low purchase frequency can indicate that the business is operating inefficiently, and will need to revamp its processes and operations in order to remain profitable.
📈 What can be done to grow sales based on these numbers?
- Analyze the customers
The best way to increase your purchase frequency based on the Synder report is to analyze the customers who are your “regulars” and talk to them. Through talking you might understand the needs of your customers and optimize your products so that the customers will be even more motivated to buy them.
- Create marketing campaigns
Think of marketing campaigns based on customers’ behavior – encourage them to spend points and redeem rewards. You may also try creating retention email campaigns to re-engage those who haven’t purchased in a while.
Let Synder Business Insights do the numbers so that you can focus on the right strategies for your business!