Percentage of Returning Customers

Overview

Percentage of Returning Customers represents the proportion of returning customers within a specific period relative to the total number of customers.

πŸ“˜

Percentage of Returning Customers = (Returning Customers / Total Customers)

The calculation is based on data from the Orders table.

Insights and Actions

The Percentage of Returning Customers is a key metric for understanding customer loyalty and the effectiveness of retention strategies. Efficiently leveraging this data can guide strategic business decisions:

  • Enhance Customer Retention Programs: Use insights from the returning customer rate to refine or introduce loyalty programs, personalized offers, and engagement strategies to increase customer loyalty.
  • Identify Successful Retention Channels: Analyze which marketing channels and tactics have the highest correlation with customer returns to focus your efforts on the most effective methods.
  • Improve Product and Service Offerings: Gather feedback from returning customers to understand what keeps them coming back and where there's room for improvement, then use this information to enhance your offerings.
  • Segment and Personalize Communications: Segment your customer base by purchase history and preferences to tailor communications and promotions, encouraging more frequent returns.

Example Use

Prompt

Show me the % of returning customers for the last quarter

Response

Query

WITH
  customers_cte AS (
    SELECT
      COUNT(
        DISTINCT CASE
          WHEN is_new_customer = FALSE THEN customer_id
        END
      ) AS returning_customers,
      COUNT(DISTINCT customer_id) AS total_customers
    FROM
      orders_table
    WHERE
      event_date BETWEEN DATE_ADD(
        DATE_TRUNC(CURRENT_DATE(), QUARTER),
        INTERVAL -1 QUARTER
      ) AND DATE_SUB(
        DATE_TRUNC(CURRENT_DATE(), QUARTER),
        INTERVAL 1 DAY
      )
  )
SELECT
  COALESCE(
    returning_customers / NULLIF(total_customers, 0),
    0
  ) AS returning_customers_percentage
FROM
  customers_cte;