Here’s how you can apply the insights from each metric for better marketing decisions:
1. Improving Customer Retention
If the Returning Customer Size is low, focus on nurturing existing customers through:
Loyalty programs
Exclusive discounts for returning buyers
Personalized email campaigns
2. Enhancing Regional Marketing Efforts
If the majority of high-value customers are concentrated in specific cities or countries, you can:
Create localized ads that speak to regional trends.
Use culturally relevant messaging in marketing campaigns.
3. Increasing New Customer Acquisition
If New Customer Size is low, consider:
Expanding paid media efforts to reach new audiences.
Partnering with influencers in regions where new customer growth is slow.
4. Optimizing Product Strategies
If a certain product is consistently bought by returning customers, consider promoting that product in your remarketing campaigns.
Leverage top-performing locations to test new product launches before scaling globally.
Example Scenario
Business Context:
A fashion eCommerce store notices that Los Angeles and Chicago have the highest number of high-LTV customers. However, Toronto and London rank higher in loyal customer counts.
❗ Action Plan:
Launch a loyalty program in London and Toronto to capitalize on loyalty trends.
In Los Angeles and Chicago, introduce exclusive early-access sales to reward high-LTV buyers.
Use retargeting campaigns featuring popular products for users in Toronto and London.