Common issues before implementing a data warehouse

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It is important to note that even if customer satisfaction is high, customers may leave due to reasons such as insufficient follow-up support. Customer retention rate The customer retention rate is an indicator that shows the percentage of customers who continue doing business with a company over a certain period of time. It is calculated by determining the target period, investigating the number of existing customers at the start of the period, the total number of customers at the end of the period, and the number of new customers gained during the period.


<Customer retention rate calculation formula> Customer tunisia telegram database retention rate = (Total number of customers at the end of the period - New customers during the period) ÷ Number of existing customers at the start of the period x 100 Customer retention rate is often used to gauge customer loyalty in subscription services, SaaS, and other areas. LTV LTV (Life Time Value) indicates the total amount of profits earned during the period from the start to the end of a transaction with a customer .


It is translated as "customer lifetime value." There are several formulas for calculating LTV, and the most common formula is as follows. <Typical LTV calculation formula> (1) LTV = average purchase price x average number of purchases x duration (2) LTV = average purchase price x gross profit / cancellation rate (3) LTV = annual transaction amount x profitability x duration Of the above formulas, (1) is the basic LTV formula. It is mainly used when calculating the LTV of repeat purchase products.