Analytics Recipe Cookbook - Summaries

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New, Repeat, and Reactivated Customer Segmentation

  • 1.  New, Repeat, and Reactivated Customer Segmentation

    DIRECTOR EMERITUS
    Posted 11-28-2016 12:25 PM

    Introduction: The size, health, and composition of your customer file is one of the most important KPIs, especially for an ecommerce business.  It provides an indication of the overall health of the business and provides a basis for understanding customer acquisition and retention costs, customer lifetime-value (CLV), and planning and resourcing customer service and logistics functions.

    Analysis Overview:

    If your organization sells products on its website, you need to know the size, change over time, attributes, and composition of your 12 month customer file. The data is based on your transaction data and may include your product taxonomy and your marketing spend. Commonly this data will have to be analyzed in a spreadsheet or BI tool, but you may be able to implement custom variables/dimensions and calculated metrics in your analytics tool to accomplish this analysis. The recipe can also be applied to non-product businesses using similar data points that are unique to the business model.

    Analysis Benefits:

    • Compare the efficacy of acquisition and retention marketing investments based on customer segments
    • Understand retention and repeat purchase rates over time
    • Understand primary customer segments and their impact on Customer Lifetime Value (CLV)

    DAA members, go here to view full recipe.

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    Casey Carey
    Director, Google Analytics Marketing
    Google (Corporate Account)
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