Average lifetime revenue
This metric shows you the average lifetime revenue from coupon and non-coupon acquired customers. This can help determine if the lifetime value of a customer varies depending on their acquisition type.
Number of repeat orders
This metric shows you the number of repeat orders made by both types of customer acquisitions. This can help determine if more follow-up orders are placed by coupon acquired or non-coupon acquired customers.
Number and percent of repeat orders with coupon
This shows the number of repeat orders made with a coupon applied and the percent of repeat orders made with a coupon. This can help you determine if coupon-acquired customers tend to make more repeat orders with a coupon than non-coupon acquired customers and if coupon-acquired customers are disproportionately using coupons in their follow-up orders.
Look at some sample data for coupon acquisition versus non-coupon acquisition metrics:
| Customer acquisition | Number of new customers | Average lifetime revenue | Number of repeat orders | Number of repeat orders w/ coupon | % of repeat orders w/ coupon |
|---|---|---|---|---|---|
| Coupon | 1,206 | $356.91 | 2,570 | 1,248 | 48.56% |
| Non-coupon | 11,561 | $498.30 | 20,145 | 3,251 | 16.14% |
Look at what you can you take away from this:
Number of new customers
In the above example, there is a much larger number of non-coupon acquisitions than coupon acquisitions. However, there are still 1,206 customers acquired via a coupon that may otherwise not have become customers.
Average lifetime revenue
In this example, non-coupon acquisitions have a higher average lifetime revenue than coupon acquisitions. This implies that non-coupon acquisitions are making more repeat purchases and/or are making higher value purchases.
Number of repeat orders
The number of repeat orders for non-coupon acquisitions is much higher than coupon acquisitions. This is expected because there are many more non-coupon acquired customers.
Number of repeat orders with coupon
Similarly, the number of repeat orders made with a coupon are higher for non-coupon acquisitions.
Percent of repeat orders with coupon
Non-coupon acquired customers have a much lower percent of repeat orders with a coupon applied than coupon-acquired customers. Thus, for coupon-acquired customers, almost half of repeat orders has a coupon applied. In this example, coupon acquired customers tend to make repeat purchases with coupons.
Analyzing first order details from coupon acquisitions
This section focuses only on first orders from coupon acquisitions, segmented by coupon. Use these metrics in your analysis:
Number of orders/customers
This metric shows you the number of first time orders for each coupon, or the number of customers who used that coupon in their first order. This can help determine if a certain coupon encourages more first time purchases than other coupons.
Gross revenue
This metric reveals the revenue that you earn from a particular coupon that was used in a customer’s first order. This revenue is a calculation of items sold before any discounts are applied.
Discounts from coupons
This metric shows you the total discount amount applied from the coupons.
Net revenue
This metric reveals the revenue that you earn from a particular coupon that was used in a customer’s first order. This revenue is a calculation of items sold after all discounts are applied. It is important to note that the net revenue may not have occurred without the coupons.
Average order value
This metric reveals the average order value for a particular coupon.
Average lifetime number of orders
This metric helps evaluate the loyalty and average number of orders generated by customers who use a certain coupon.
Average lifetime revenue
This metric helps evaluate the loyalty and average revenue generated by customers who use a certain coupon. When evaluating whether customers who use coupons are higher value than others, be sure to account for the number of orders each coupon was used in to ensure that you have a significant sample size.
Now, look at an example involving three different coupons used for customers’ first-time order:
| Coupon | First time orders (FTO) | Gross revenue from FTO | Discounts applied to FTO | Net revenue from FTO | Average order value for FTO |
|---|---|---|---|---|---|
| 25% off $100 or more | 56 | $8,531.04 | $2,132.76 | $6,398.28 | $152.34 |
| $10 off | 87 | $3,707.07 | $426.10 | $3,280.97 | $42.61 |
| 20% off | 145 | $10,975.05 | $2,195.01 | $8,780.04 | $75.69 |
What can be taken from this? First, the “20% off” coupon had the most number of first time orders. However, the number of orders associated with each coupon could vary based on several factors, including:
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the amount of advertisement for each coupon.
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the length of time for which the coupons were offered.
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the time of day/week/month/year the coupons were offered.
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the season that the coupons were offered, depending on the business.
Example: the “20% off” coupon was offered during the summer months, but the business sells winter clothing.
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the restrictions on the coupons.
Example: the “10% off” coupon is only offered to customers who purchase a winter coat in the same order.
The gross revenue for the “25% off $100 or more” coupon is much higher than the gross revenue for the “$10 off” coupon. However, the “$10 off” coupon has a much larger number of orders. Analyzing the average order value provides insight into these differences. Even though the “25% off $100 or more” coupon had fewer number of orders, the average order value is over triple that of the “$10 off” coupon. Thus, a larger gross revenue is attributed to the “25% off $100 or more” coupon.
The discounts and net revenue for the “25% off $100 or more” and “20% off” coupons are close in value. Even though the average order value for “25% off $100 or more” is close to twice the average order value for “20% off”, the latter coupon has a little less than triple the number of orders.