When tracking this metric, it’s important to compare it to other metrics like customer satisfaction and NPS. For example, if you notice that the time between purchases is long, this could be a sign that your product or service isn’t differentiated from others in the same industry. Alternatively, it could mean that your product is so well-made that customers don’t need to buy it again. Comparing time to purchase with other customer satisfaction metrics is a great way to determine the overall strengths and weaknesses of your offer.
To calculate the average time between purchases, you need to keep track of all your customers’ purchase dates. A CRM can help you do this because it can set up contact attributes to record when a customer makes a repeat purchase.
Once you have a system of record, you need to add together indonesia mobile database the average purchase rate for each customer. For example, if a customer buys from you today and then buys a different product a week later, their purchase rate would be 7 days. If they buy from you again two weeks later, their average purchase rate would be 10.5 days.
After finding the sum of all your individual purchase rates, divide that number by your total
Returning customers. Be sure to exclude any new customers, as this metric should only measure existing customers who make repeat purchases.
Time Between Purchase Formulas
Purchase interval = sum of individual purchase rates number of repeat customers
Purchase interval example
For this example, it is easier to explain the calculation using the Excel spreadsheet below.