Purchase frequency is a key metric that is critical for understanding the behavior of your customers. It’s arguably one of the most important analytics that you can track and understand for your company, because it tracks how often a customer buys a product or service from you. That information can tell you whether a customer is purchasing from a competitor instead of you, show you areas of your business that need improvement, and more.
Purchase frequency is one of the most important indicators of whether your have at risk customers or not. At risk customers are ones that you are in danger of losing. If a customer’s purchase frequency is decreasing, that could indicate that they are buying from a competitor instead of from you. Most businesses will need a continuous supply of key parts and services. If they are no longer receiving those things from you, then they are going somewhere else. When this continues to happen for a long period of time, at risk customers will become lost customers.
Many businesses are actually a collection of multiple types of businesses with different purchase frequencies and needs. For example, heavy equipment dealers usually include four businesses: service, parts, rental, and equipment sales, new and used. If the purchase frequency for one of those departments starts to fall off, but the other areas remain strong, then it’s a sign that you need to devote resources towards improving the aspect or department that isn’t doing as well.
After you begin consistently tracking purchase frequency, you will start to understand some useful information about your customers. Once you determine the baseline of a normal purchase frequency, along with information about when and how much they typically buy, you can focus your marketing efforts around existing purchasing habits and trends. Plus, you’ll recognize when something is wrong more quickly, so you can respond more effectively and keep at risk customers from leaving you.
When Winsby develops and sends emails on behalf of a client, their customers that are on their email distribution list buy two to three times more often than those customers who are not on their list. The reason for this increase is that effective emails remind customers about your products and services, show that you know what you are talking about, and give them an easy opportunity to buy from you.
Purchase frequency is a key metric that every business should be paying attention to and finding ways to improve. Zintoro will track it for you, and Winsby will help you increase it.
If you want to understand purchase frequency, recognize at risk customers, and track other key metrics, contact the Winsby team today.