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Customer Insight Reports and Customer Lifetime Stages

Acquiring a new customer costs 5 times higher than an old customer. Understanding the importance of growing your loyal customer segment, AVADA provides insight analytics base on customer behaviors (buying frequency, recency and spend). This helps you take care of your most valuable segments and engage more with less active customers.

This guide helps you to read the Customers’ Insight Report and understand each Customer Lifecycle. Simple to say, this feature in AVADA allows you to know who is your repeat buyers, most engage customers and who you need to re-engage more.

Main contents:

- Overall Customer Insight Reports
+ General statistics
+ Customer Lifetime Stage
+ Retention reports

- Single Profile Insight Reports
+ Customer Lifetime Value
+ Customer Lifetime Stage

- Segments based on Customer Insights

Overall Customer Insights Report

Please go to Reports > Customer Insights to see the whole picture of your customer base.

General statistics

Here you will see the general metrics of:

- Total customer number: Customers who purchased on your store
- Last month retention rate: equal to the number of customer rebuy over total customers number
- Number of new customers last month: Customers who buy the first time in your store last month
- Number of returning customers last month: customer rebuy last month

Customer Lifetime Stage

Using the Lifetime Stage Map, you can see the distribution of each customer stage which help you to evaluate your customer base and direct the action plan to improve the situation.

How do we define each customer stage?

For instance, if the customer has made just one purchase - he or she will be identified as a 'New customers'. If such a buyer doesn’t make an order for a certain amount of time, they will fall into the 'Need attention' stage, later 'At risk' and finally they will be classified as 'Lost'.

Next, you can ask how we decide which stage a customer should be in. The movement from a recent customer to a customer that needs nurturing (similar for Champions or Potential loyalists) happens when a specific amount of days lapse from the last order. We determine this number of days by looking at the typical behavior across all returning customers in that particular store. So, it’s personalized for each store. Here's how we define the typical behavior for each brand:

- In single customer level:

Recency (days since last order)
Frequency (number of orders made in the last 365 days)
Monetary (average order value)

- In the store level:

Recency - how much time it takes to make a repeat order on average
Monetary - what is the average order value

- How we compare:

We compare if the customer monetary value is greater or lower compared to store value
We compare if the customer recency value is greater or lower than store value

Note: The accuracy of distribution is higher when you have bigger customer number. If we don't have enough data to build personalized customer lifecycle path for your store, we compare your customers to the predefined threshold:

A customer is "New customer" if his last purchase was less than 40 days ago

A customer "Is Promising" if his last purchase was less than 90 days ago but more than 40 days ago

A customer is "About to sleep" if his last purchase was less than 120 days but more than 90 days ago;

A customer is "Lost" if his last purchase was more than 120 days ago.

Marketing Channel Engagement

Right under Customer Lifetime Stage is Marketing Channel Engagement - this pie chart allows admin to see your customer base in different engagement levels with your marketing messages in generally.

This help you understand whether your marketing activities are welcome and engaged by almost customers or not.

Retention Reports

At the bottom of Customer Insight Reports page, you will find 2 charts that indicate the Retention of your customers each month:

- New buyers and Repeat Buyers: See how many customers buy first time and how many come back to rebuy.
- Retention rate monthly: Compare repeat customers each month.

Single Profile Insight Reports

Beside General Insight Reports help you to see the whole picture, you can open each contacts in AVADA Audiences page to see detail insight about it.

Customer Lifetime Stage

Base on the contact score, AVADA classify each customer into a Lifetime Stage & Engagement Level:

For each customer that has placed at least 1 order, you can find his or her lifecycle stage in the Profile view. This gives an even better understanding of each specific contact and provides a more complete single customer view.

Note! If customer hasn't placed any orders, you'll see dash next to lifecycle stage.

Customer lifetime value

Right next to Customer Score and Lifetime Stage, you will see some revenue metrics about this contact:

- Orders metric shows how many orders this customer has placed.
- Total Spent shows how much this customers has paid for you.
- Email Sent shows how many emails you sent to this customer
- AOV show average order value (equal to total spent divided by order number)

Customer Insight in Segmentation

In order to help you target the right customers with the relevant messages, AVADA support segments based on Customer Lifetime Stage and Customer Engagement Level.

Please go to Audiences > Create Segment > Select Customer Life Time Stage or Select Customer Engagement Level, then choose a specific option.
You can combine other conditions or just use this stand alone condition to make a segment.

Updated on: 14/09/2021

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