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Average Purchase Frequency

Date created: Oct 12, 2022  •   Last updated: Mar 26, 2024

What is Average Purchase Frequency? 

Average Purchase Frequency counts the average number of transactions per customer per period. This metric is used to better understand customer behavior and purchase patterns.

Average Purchase Frequency Formula

ƒ Count(Orders
Description: Won Opportunities is the count of sales opportunities that are “Closed Won”. It is a measure of success of the Sales, Marketing, and Product teams. "Closed Won" is the stage at which a quote or proposal has been signed or electronically accepted and is now considered fulfillable. Counter to Won Customers, Won Opportunities apply to both new and existing customers.
) / Count(Unique Customers
Description: One of the most fundamental metrics, Customers is the total count of paying patrons of your business. Without paying customers there is no growth and no value in your business. To accurately assess your customer base, it's important to track new and returning customers as they play a different role in your business. New Customers refer to users who just signed up or made their first purchase with your company while Returning Customers are those who have already made a purchase in the past.
)

How to calculate Average Purchase Frequency

If your business gets 10,000 orders in one month from 8,000 unique customers, your Average Purchase Frequency is 1.25, meaning that most customers made purchases between one to two times that month.

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How to visualize Average Purchase Frequency?

It helps to visualize Average Purchase Frequency as a summary chart. This type of data visualization, also known as a metric chart, will allow you to see the current value of your metric in comparison with a previous period. This way, you can quickly see the impact of your efforts (or lack of efforts) on Average Purchase Frequency.

Average Purchase Frequency visualization example

Average Purchase Frequency

3

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0.57

vs previous period

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Summary Chart

Here's an example of how to visualize your current Average Purchase Frequency data in comparison to a previous time period or date range.
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Average Purchase Frequency

Chart

Measuring Average Purchase Frequency

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More about Average Purchase Frequency

Average Purchase Frequency is an important lever for organizations in driving desired customer behavior. This is a standard goal behind many loyalty strategies and is a standard growth objective and “move the middle” loyalty metric.

Benchmarks for this metric can be highly variable, depending on the industry. Average Purchase Frequency in car sales is very different from that in grocery, for example. It is important to define and measure against industry benchmarks, as well as the organization goals. This is a loyalty metric that should be measured and tracked by customer-value segment, as well as overall for the entire customer base. Best customers buy more, more frequently.

Metric Toolkit

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Use Klipfolio PowerMetrics, our free analytics tool, to monitor your data.

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Contributor

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Vicky FreedData Analytics Expert

Metrics related to Average Purchase Frequency

Customer Retention RateTransaction RecencySpend Lift

Related Tags

Sales
New
Loyalty
Retail
Customer Success Manager
Founder
Product Manager