Acquisition vs. Retention: Understanding Customer Value

Understanding customer value is important. This Data Academy lesson focuses on the balance between acquisition and retention. In this video, Cyrus and Piam take you on a journey through Shopify reports that provide essential insights.

Acquisition: The Process Of Attracting New Customers Through Marketing Efforts, Promotions, Or Other Strategic Campaigns.

Retention: Keeping Existing Customers Engaged And Encouraging Repeat Purchases To Build Loyalty And Maximize Customer Lifetime Value.

We dive deep into the world of first-time and returning customer value. Average order values, purchase frequencies, and overall customer worth are only some of the concepts explained.

Understanding these metrics is crucial for merchants looking to grow their businesses by effectively balancing their acquisition and retention strategies. But this only happens when you start understanding customer value.

Whether you’re an experienced merchant seeking to fine-tune your approach or just starting your e-commerce journey, this concise walkthrough equips you with valuable knowledge. Making informed decisions based on customer insights is the cornerstone of sustainable growth.

With this video, you’ll see how you can use our app to access reports. Enjoy having reports with customizable features. This allows you to:

• Customize by Date: Select Whatever Time Frame You Want
• Customize How You Group Your Data: Choose between options such as day, week, and month.
• Customize the Customer Groups: Choose a preset customer segment or a custom segment you created to study your customers

Have questions or ideas for future sessions? We’re here to listen! Email us at support@bythenumbersapp.com, and our team will be happy to assist you.

Keep reading

If you want the full picture on cohort analysis and retention, start with how to read your cohort retention curve.

Related reading: Shopify Analytics: First-Time vs Returning Customer Analysis, Understanding Product Repurchase Rate with By the Numbers on Shopify and Uncovering Repurchase Patterns – Starting with a Specific Product.

By the Numbers builds this into the dashboard. See cohort analysis.