Average Retention Rate card
This card calculates the percentage of customers with more than 1 order, out of your total customer base, up until the selected point in the timeline.
By default, the timeframe is set for the previous 12 months and the card displays the retention rate for each month. To see the exact retention rate for a specific point in time, simply place the cursor on the red curve, at the intersection with the vertical of that time’s point.
You can view your monthly retention rate for a period of up to 24 months, by selecting a maximum 24 month interval, as in the image below:
If you would like to see the daily retention rate, you would have to set the timeframe for maximum one month.
If you set the start and end date for up to 29 weeks, the graph will display the weekly retention rate.
For a period of over 2 years, the retention rate will be displayed on an yearly basis.
Revenue vs. Margin by Customer Type card
This card shows the calculation of the revenue and margin distributed between your first time customers versus your repeat customers. This can help you realize which type of customers is more valuable to your business.
Note: a first time customer is a customer that placed their first order in the selected period of time and did not place another order during that timeframe; a repeat customer is a customer that placed their second order, or third order, or forth order, etc in the selected period of time, regardless of their first order being placed in the same timeframe or a previous timeframe.
Why is the share of repeat customers different from the retention rate?
Unless your selected timeframe is your store’s entire lifetime, you might notice that the share of repeat customers in the Revenue vs. Margin by Customer Type card is different than the Average Retention Rate.
For the Average Retention Rate, we take into account all customers that have placed a minimum of 2 orders since the beginning of the store’s activity.
In Revenue vs. Margin by Customer Type, for the share of repeat customers, we take into account only the customers that have placed their second order, or third order, or forth order, etc in the selected timeframe. This order might be their first order in the selected timeframe, but they have definitely placed at least one other order since the beginning of the store’s activity, prior to the selected start date in your timeframe selection.
Let’s take an example: let’s consider the selected time frame January 14th 2020 to January 14th 2021, for an online store that started their activity in 2017.
A customer placed their first order in January 2018 and their second and last order in February 2018.
For the Average Retention Rate, this customer is considered a repeat customer, as they placed two orders.
They would not be taken into account for the calculation of share of repeat customers (in Revenue vs. Margin by Customer Type), for the selected timeframe, as they didn’t place any order during that time.
Additional details needed?
Please don’t hesitate to reach out to our amazing customer support team if you need any additional information.
Was this post helpful?