Date created: Oct 25, 2022 • Last updated: Feb 26, 2023
What is Customers?
One of the most fundamental metrics, Customers is the total count of paying patrons of your business. Without paying customers there is no growth and no value in your business. To accurately assess your customer base, it's important to track new and returning customers as they play a different role in your business. New Customers refer to users who just signed up or made their first purchase with your company while Returning Customers are those who have already made a purchase in the past.
How to calculate Customers
A company that has been in business for many years has a total of 5,000 customers who have purchased products or services. This number grows as new paying customers are added every month.
Start tracking your Customers data
Use Klipfolio PowerMetrics, our free analytics tool, to monitor your data. Choose one of the following available services to start tracking your Customers instantly.
More about Customers
There are several key differences between New and Returning Customers that businesses should take into account when planning their growth strategy.
First, it costs more to acquire new customers than to retain existing ones. Second, returning customers tend to spend more money and are more likely to become loyal customers. Lastly, returning customers are typically easier to convert into leads and sales as they already have an understanding of your product or service.
By tracking the ratio of new-to-returning customers, businesses can better understand their customer acquisition costs and optimize spending on sales and marketing efforts. It also helps them determine which channels are the most effective in terms of driving new customers and which ones should be focused on for retaining existing customers.
Businesses should segment their customer base in a variety of ways to gain a better understanding of their business. By analyzing factors such as age, gender, location, buying behavior, payment preferences, and engagement level (i.e. how frequently customers purchase from the business) businesses can identify different customer groups that may require different strategies for growth and retention.