Analyse Order Repurchase Rate by Order Sequence

Retention > Repurchase by Sequence > Time > Trend View

Summary

This report helps identify key behaviors and trends regarding customer retention at various order sequences, giving you an understanding of where customers tend to repurchase and where there might be drop-offs. The Trend View showcases the Order Repurchase Rate and the Number of Customers across each order sequence.

Questions the report answers

• At which point do most customers drop off in the repurchase sequence?
• How does the order repurchase rate change from one order sequence to the next?
• Are customers becoming more loyal over time?

How to read the report

The report is structured to help you understand repurchase behavior by visualizing both the Order Repurchase Rate and the Number of Customers for each order sequence. Here is how you can make sense of the data:

Understanding the Chart

• Each bar represents the Number of Customers who reached a particular order sequence allowing you to understand at which stage there is a significant drop-off in repeat orders. For example, the first bar (Order Sequence 1) indicates the total number of customers who made their initial purchase. Subsequent bars show the number of customers that continued to the 2nd, 3rd, 4th orders, and beyond.
  • A steep drop-off in the bar height from one order sequence to the next suggests that many customers are not returning for repeat purchases. Identifying such drop-offs helps pinpoint where customer retention is weakest.
• The line on the chart represents the order repurchase rate indicating the percentage of customers who went on to make the next purchase.
  • A consistent or rising order repurchase rate across sequence is a positive indicator, an increase in customer loyalty.
  • A decreasing trend in the repeat repurchase rate across order sequences might indicate a decrease in customer loyalty.

Analyzing the Data Table

• You can identify the drop-off point by examining the order repurchase rate at each order sequence. Drop-off points are the order sequence at which the order repurchase is low indicating the issue with customer retention after the purchase. For instance, if there’s a substantial decline in the 1st and 2nd orders it indicates an issue with customer retention after the initial purchase.
• Observing how AOV changes across order sequences can help identify if customers spend more as they become more engaged. An increasing AOV could indicate that loyal customers are more willing to spend, which may suggest opportunities for upselling or cross-selling.
• Average Days to Repeat column shows the time it takes, on average, for customers to make a repeat purchase. If the days to repeat are decreasing across sequences, this indicates that customers are purchasing more frequently, which is a strong indicator of customer satisfaction and loyalty.

Color Coding

Color coding in the report helps highlight high and low performance at each sequence:

• Green: Indicates good performance for the specific metric at that sequence. For example, a high order repurchase rate or a decrease in average days to repeat.
• Red: Indicates a potential issue, such as a low repurchase rate or an increase in average days to repeat, signaling that retention strategies may need improvement.

Glossary

Number of Customers

Total count of unique customers who have made at least one purchase. It is calculated by counting the number of unique customers.

Average Order Value (AOV)

The average amount a customer spends per order. It is calculated by dividing the total sales amount by the number of orders.

Order Repurchase Rate

The proportion of customers who make a repeat purchase relative to the total number of customers associated with their previous order sequence.

Average Days to Repeat

The median number of days it takes for a customer to make a repeat purchase within a year after their initial order. It calculates the median of the days to repeat the order. It specifically considers only those orders where the number of days to repeat is less than 365.

Order Sequence Number

A numerical identifier that represents the chronological order of a customer’s purchases. This field tracks the sequence of orders placed by an individual customer, starting from their first purchase.