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Average Purchase Frequency

What is Average Purchase Frequency?

Average Purchase Frequency counts the average number of transactions per customer per period. This metric is used to better understand customer behavior and purchase patterns.

How to calculate Average Purchase Frequency

ƒ Count(Orders) / Count(Unique Customers)

Example

If your business gets 10,000 orders in one month from 8,000 unique customers, your Average Purchase Frequency is 1.25, meaning that most customers made purchases between one to two times that month.

More about this metric

Average Purchase Frequency is an important lever for organizations in driving desired customer behavior. This is a standard goal behind many loyalty strategies and is a standard growth objective and “move the middle” loyalty metric.

Benchmarks for this metric can be highly variable, depending on the industry. Average Purchase Frequency in car sales is very different from that in grocery, for example. It is important to define and measure against industry benchmarks, as well as the organization goals. This is a loyalty metric that should be measured and tracked by customer-value segment, as well as overall for the entire customer base. Best customers buy more, more frequently.

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