In this video, you will see an easy to follow tutorial on how to calculate retention rates using Klaviyo. You will see how to use lists and segments to create ones for different timeframes, which you may want for the last 6 months, 1 year or 2 years. For each segment, I will show the calculation to use and also if you want to check them all together.
This can help you if you are tracking returning buyers, individual orders or an individual product. This can help you see what percentage you’re retaining, if you have a low rate, you can look at strategies to make sure people buy again. These could be follow up emails a few months later or a discount code to use on another order or a 20 or 50 percent off deal, check out other videos on channel for more information on this.
Retention rate is a very important and key factor in the development and progression of your business. New customers and regular sales from new buyers are great, but are they returning? You want to have long term customers, this will boost revenue and maximize profits from an individual customer. Also, it is a great indicator to show that people like your products and want to keep using them again and again.
If you want quantifyable results when measuring your customer loyalty, NPS is the way to go. We have a NPS calculator to make it easy for you to understand how likely your customers are to stay.