How Customer Purchase Latency Takes The Guesswork Out Of Scheduling Marketing

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Customer Purchase Latency is a metric that measures the number of day in-between orders.

If a customer comes in to buy a sandwich every day, their latency is 1 (day). If they come in every Tuesday, it’s 7.

Alone, Customer Purchase Latency isn’t very actionable because individual customer behavior varies wildly. It’s rare to find someone who has a regular, consistent schedule outside of subscriptions.

In aggregate though, you can get a lot of solid information when you measure your entire customer base. By averaging the latency of all of your customers you can get one highly-actionable number (Average Customer Purchase Latency).

This is a measurement of how long it takes a customer to buy again. New customers making their second purchase. Repeat customers making their 10th purchase. It can track them all.

With this metric in mind, you can use it anywhere it’s time to nudge a customer to make another purchase. Win-back campaigns are the most valuable use of latency. It can also work well with New Customer Welcome Campaigns or any other gradual re-engagement campaign.

The key is to build the campaign around the latency times. If your latency is 87 days, then around 87 days into your campaign you should be giving customers a reason to buy again.

Average Customer Purchase Latency was actually one of the first metrics I built into Repeat Customer Insights. No one I could find tracked it and still to this day it’s under-used by analysis apps and stores. I wish more stores would use the metric instead of just relying on guesses when scheduling campaigns.

Eric Davis

This originally appeared on the LittleStream Software Blog and is made available here to cast a wider net of discovery.
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Author

Steve has entrepreneurship in his DNA. Starting in the early 2000s, Steve achieved eBay Power Seller status which propelled him to become a founding partner of VisionPros.com, a contact lens and eyewear retailer. Four years later through a successful exit from that startup, he embarked on his next journey into digital strategy for direct-to-consumer brands.

Currently, Steve is a Senior Merchant Success Manager at Shopify, where he helps brands to identify, navigate and accelerate growth online and in-store.

To maintain his competitive edge, Steve also hosts the top-rated twice-weekly podcast eCommerce Fastlane. He interviews Shopify Partners and subject matter experts who share the latest marketing strategy, tactics, platforms, and must-have apps, that assist Shopify-powered brands to improve efficiencies, profitably grow revenue and to build lifetime customer loyalty.

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