Customer & marketing · PF

Purchase frequency

How often the average active customer buys.

orders_in_period ÷ active_customers Unit orders per customer per period Usual grain year × segment

01 What it is

Why anyone looks at this number

In one sentence

How often the average active customer buys.

It is the quiet half of growth. Getting existing customers to buy one more time a year usually costs a fraction of winning the equivalent revenue in new logos.

02 The formula

How it is worked out

purchase-frequencydefinition
Purchase frequency = orders_in_period ÷ active_customers

grain  : year × segment
unit   : orders per customer per period
source : Billing

Count orders, not lines or deliveries. A single order split into three deliveries is one purchase decision, and mixing the two triples the apparent frequency.

03 Worked example

The same number, with real inputs

Inputs
Orders in the year12,720
Active customers3,180
Calculation12,720 ÷ 3,180
Result4.0 orders per customer

One extra order per customer per year is 3,180 orders. At the average order value that is worth more than a 10% rise in new customer acquisition.

04 What moves it

Four things that actually change this number

Driver 01

Range relevance

How much of what they buy you actually sell.

Driver 02

Replenishment cycle

Order size against their consumption rate.

Driver 03

Contact cadence

Whether anyone speaks to them between orders.

Driver 04

Channel friction

Self-serve reordering raises frequency more than most campaigns.

05 Where the number lives

The system, the record and the fields

System of recordKey recordFields you need
BillingOrder joined to Customer order_date, customer_id, order_value, channel

Count orders, not lines or deliveries. A single order split into three deliveries is one purchase decision, and mixing the two triples the apparent frequency.

06 How it goes wrong

Three ways this metric misleads people

Mistake

Averaging over a mixed base

Weekly buyers and annual buyers average into a meaningless middle.

Fix: Segment by buying pattern before averaging.
Mistake

Counting deliveries as orders

Split deliveries inflate frequency and understate order value.

Fix: Count the purchase decision.
Mistake

Ignoring the interval

Frequency hides whether the gap between orders is lengthening.

Fix: Track the median interval as well; it moves earlier.

08 Questions

Frequently asked

Is frequency or basket size the better lever?

Frequency usually, because it is a habit rather than a single decision. Basket size tends to move once, then plateau.

How do we spot a customer about to lapse?

By their own interval, not the average. A customer who normally orders every three weeks and has not ordered in seven is the signal — a global rule would miss it entirely.

One definition, everywhere it is used

SCIKIQ stores this metric once and serves it to every dashboard, board pack and agent that asks.

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