The figures shown in the Customer Analytics section are designed to show the 'customer funnel' and the performance and evolution of each stage over time. Drawing data directly from Shopify, we create a snapshot of the 'customer health' and surface key metrics surrounding opt-ins, messages sent, average revenue, subscription, churn and an overview of SMS marketing subscriber growth.
Notes
Average Reorder Gap
The average reorder gap is the average time between customer orders. This figure is measured in days between the first and the most recent order to work out an average in days (only measured for customers who have ordered twice or more).
Churn
Churn is the percentage of customers who haven’t purchased a product since their calculated churn date. We calculate the churn date using all historic data individually for each customer and then average this out across all customers.
Average Revenue
This number is similar to an LTV metric (Life Time Value ) and is the average spend of customers before they churn. This figure is shown for both one time and repeat purchases.
How we calculate this figure for repeat purchases:
- At an individual customer level we will see what order number a customer is on, eg order #5. We will also see what the customer’s total historic spend is over those 5 orders and average order value.
- We calculate a percentage of historic customers for the brand who have gone from a 5th order to a 6th order.
- We multiply their average order value with this factor and add to their historic lifetime spend in order to calculate the prediction for their LTV.
- We add each unique customer LTV together and divide by total customers to get a brand average.
Active subscription customers - This is the number of customers who have had a subscription charge in the last 30 days and so are classed as 'active'. The number of 'cancelled' relate to the amount of customers who have had a subscription at one point in time but have since cancelled. As a percentage this is calculated as:
(Active Subscribers) / (cancelled subscribers + One time customers) x 100