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Glossary
Glossary

Purchase Frequency

Purchase frequency describes the number of purchases per customer over a defined period. It must take into account the consumption cycle and differences between populations. An apparent increase may result from a shift in purchases over time. Observing cohorts helps to interpret the continuity of behaviour.

Coup de Poing editorial team2 min
Measure performance

A concrete example

Over a quarter, 600 orders for 200 active buyers corresponds to three orders per buyer. The result depends on the definition of an active buyer.

A point to consider

Comparing a three-month period to a twelve-month period is meaningless without adjustment. Take seasonality and new entrants into account.

Observe the order schedule

Supplement the average number of orders with the time between purchases. Analyze members who were present throughout the entire period separately from new members. After a sales event, also observe the following period: an immediate surge may correspond to orders brought forward. The conclusion depends on the cumulative effect and the margin over a sufficiently long period to cover the buying cycle.

Questions to ask your team

  • Does the following period confirm the change in pace?
  • Did the customers have the same duration of exposure to the programme?

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Glossary 2 min

Average order value

The average order value relates the revenue from a set of orders to the number of retained orders. Taxes, returns, cancellations, and time periods must be specified. Its evolution can result from a change in price, product range, or customer base. It does not, on its own, demonstrate an improvement due to the programme.

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Glossary 2 min

Cohort

A cohort brings together people who share an event or starting point, such as the month of membership. Tracking it allows for the comparison of trajectories with similar maturity. The rules for entry, exit, and observation must be stable. It helps, in particular, to understand activation, consumption, and retention.

Understand and apply
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