Vital CRM
What do "repurchase frequency" and "repurchase cycle" mean in repurchase cycle analysis?

In addition to observing the repurchase cycle, analyzing customer purchasing behavior based on the frequency of repurchases is also important. However, how do we determine the number of repurchases?

From the perspective of the retail industry, any purchase after the first one is considered a repurchase, even if the customer splits the order into multiple transactions on the same day due to promotions or other reasons. This is because multiple purchases on the same day demonstrate the customer's trust in the store, and this data cannot be ignored in the analysis.

When calculating the repurchase cycle, the focus is on how often the customer returns to make a purchase, so that marketing efforts can be made when the customer's repurchase cycle is approaching. Therefore, the calculation is done in days, and multiple purchases on the same day are counted as one, to avoid any miscalculations in marketing strategy.

In the insight analysis, the repurchase behavior is presented from both the customer and product perspectives.

The following figure shows the repurchase behavior presented from the customer's perspective, primarily based on the purchase time of orders:



Repeat purchase behavior by product requires consideration not only of the order time, but also of the items on the order, as shown in the following figure:

From the perspective of the retail industry, any purchase after the first one is considered a repurchase, even if the customer splits the order into multiple transactions on the same day due to promotions or other reasons. This is because multiple purchases on the same day demonstrate the customer's trust in the store, and this data cannot be ignored in the analysis. (Refer to FAQ)
https://faq.vitalyun.com/EN/CRM#4310