The Complete Guide to Calculating Loyalty & Retention Metrics.pdf - Calculating loyalty retention metrics Table of Contents 01 Maximizing Revenue

The Complete Guide to Calculating Loyalty & Retention Metrics.pdf

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Calculating loyalty & retention metrics.
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Table of Contents 2 3 7 8 9 13 14 15 16 18 19 20 21 22 23 24 01. Maximizing Revenue from Existing Customers . . . . . . . . . . . . . . . . . . 02. Bringing More Customers Back to Shop Again . . . . . . . . . . . . . . . . . . Average Order Value (AOV) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Profitability Per Order(PPO) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Purchase Frequency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Time Between Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 03. Tracking Retention Efforts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repeat Customer Rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Customer Lifetime Value (CLV) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 04. Measuring Customer Loyalty Online . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Redemption Rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Loyal Customer Rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 05. Retention Metric Best Practices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Benchmark Your Metrics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Check Metrics Monthly . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Use a Rewards Program as a Hub . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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By now you know every metric associated with the sale of a product on your store, and the conversion flow associated with it. Facebook ad conversions, add to carts, and on site conversion rates are all important to maximize your revenue, but only to a certain point. Hypothetically, every online business will reach a point where they can no longer grow by acquiring new customers. There are only a finite number of people in the world that can potentially buy your products, and acquiring new customers is getting expensive! If you want to stay competitive you need to focus on maximizing the value of your existing customers, and establish a sense of brand loyalty. This book will focus on showing you the metrics you need to track when adopting a customer retention strategy, while also showing you how to measure customer loyalty online. 1 Looking for a more in-depth overview of what’s going to be covered in this eBook? READ HERE
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Retention is about getting customers who have purchased from you before to come back and purchase again. It is also about maximizing the revenue of those purchases. With rising acquisition costs, it is important to maximize the value of every sale. Maximizing Revenue from Existing Customers
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Average Order Value (AOV) 3 To Calculate: Total Revenue # of Orders Taken ÷ This calculation shows you how much revenue the average purchase on your site generates for you. This is important to know because it tells you how much you can afford to spend to acquire a new customer. Unfortunately, it is often more expensive to acquire a customer than your average order value. This means you have to choose whether to retain this customer or increase your average order value. While you can try to retain this customer, we’ll cover that later. Here are a few tips to increase your average order value.
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4 1. Free Shipping Thresholds This is one of the easiest ways to increase average order value: simple set a threshold that a customer must spend in order to receive free shipping. According to UPS, 61% of shoppers abandon their cart if they can’t get free shipping. This can turn into a positive when you set a free shipping threshold. The fact that the majority of shoppers will leave your site if they can’t get free shipping also means that they will actively pursue it. You can motivate them to spend a little more in order to receive free shipping.
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  • Fall '19
  • Marketing, Loyalty program, unique customers

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