In this report, we want to divide customers into returning and new customers (this is the most fundamental type of customer segmentation). The new customers have made only one purchase from your business, while the returning ones have made more than one. Let’s go through their basic characteristics.
New customers are
while returning customers are
Let's go through the New vs returning customer analysis inside Graphite. The dataset on which you will run your model must contain a time-related column. Since the dataset contains data for a certain period of time, it's important to choose the aggregation level. For example, if weekly aggregation is selected, Graphite will generate a new vs returning customers dataset with a weekly frequency. It is necessary to contain data such as Customer ID and Order ID. Additionally, if you want, you can choose the Monetary (amount spent) variable.
With Graphite, compare absolute figures and percentages, learn how many customers you are currently retaining on a daily, weekly, or monthly basis. In the next post, the focus will be on the Model Results. Stay tuned! 🙂