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Purchase Frequency Calculator
What is purchase frequency?
Purchase frequency is a metric that measures how often customers buy from your business during a specific period. Tracking your purchase frequency can provide insights into your customer retention, loyalty, and satisfaction. It differs from repeat purchase rate, which measures the percentage of customers who make more than one purchase in a specific time.
Relevant channels: E-commerce platforms, subscription services, retail, SaaS
How to use this purchase frequency calculator
To calculate your purchase frequency, enter the total number of orders and the number of unique customers. The tool will automatically calculate your purchase frequency, providing insights into your customers’ purchasing patterns.
Purchase frequency formula
Purchase Frequency = Total Number of Orders / Number of Unique Customers
Understanding the purchase frequency result
- A high purchase frequency indicates that your customers are returning to make repeat purchases regularly. This is a positive sign for customer retention and loyalty.
- A low purchase frequency may suggest that customers are not returning to your business as often, signaling a need for improved engagement or loyalty programs.
When to calculate purchase frequency
Quarterly or monthly to track changes in customer behavior
After launching a loyalty or rewards program to see its impact
To assess the performance of your customer retention strategy
When introducing new products or services that may impact customer behavior
How to calculate purchase frequency (with example)
Let us suppose that your total number of orders in a month is 1,200 and the number of unique customers is 400. You can calculate your purchase frequency as follows:
Purchase Frequency = Total Number of Orders / Number of Unique Customers
Purchase Frequency = 1,200 / 400 = 3
This indicates that each customer made 3 purchases per month on average.
How to improve your purchase frequency
Offer loyalty programs or discounts for repeat purchases to encourage customers to buy more often
Personalize communication through email marketing to remind customers about products or services they may be interested in
Use retargeting ads to remind customers of products they've viewed or abandoned in their carts
Introduce limited-time promotions or discounts to create a sense of urgency
Improve customer experience to increase satisfaction and foster repeat business
Create subscription-based services or products that encourage recurring purchases
Regularly refresh product offerings to keep customers interested and engaged
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