MarketingProfs Know-How Exchange : Measuring Customer Retention Marketing & Metrics

Posted by: elias*	Accepted Answer
7/4/2005 10:56 AM (CST)
Hello Sy-Kamal, Repetitive purchasing i think is the most commonly metric used. Keep purchasing data of your customers and analyze the trends. It is clear that the more often same customers come to your store and complete a purchase the more happy they are. But, i believe that you need to make a distinction here. If you sell item that require a small amount to be spent, such as convenient store items, then focus on how often they come to your store. But if you sell items with a greater amount needed to be spent, focus on the amount spent on a single purchase. Regards, ELias

Posted by: melanie*	Accepted Answer
7/5/2005 3:40 PM (CST)
I was taught to measure with an LTV equation. It takes what ELias suggested, and puts every factor into an equation, where you can project, depending on what marketing efforts you put forth. The only web site I have been able to find that explains this in the best possible way, is still that of my college instructor. go to http://www.lintons.on.ca/Notes.htm and scroll down to "LTV Blank Hertz" its a simple excel file, and its a bit rough, but I found it helpful. I apologize if I have misunderstood your question and this is not what you are looking for. As for the comparison to what the industry is doing. Software, and CRM systems are what our company is using, which has a version of the LTV chart in it. Good luck, Melanie,

Posted by: jennifer.melton*	Accepted Answer
7/11/2005 5:07 PM (CST)
I agree with the previous responders. However, a full retention program would include predictive modeling/segmentation on folks likely to churn coupled with a LTV approach to ensure that you are keeping the customers you want to keep and offer testing on how the ways in which you try to keep them coming back.

Posted by: carrie77	Moderator Response
7/21/2005 8:18 AM (CST)
Hello all. I am closing this question since it's more than 2 weeks old. We do this to reward the contributions of participants in a timely manner + to give increased visibility to the newer questions. Thanks for participating! Carrie (Production Editor)