Retention is critical for long-term profitability in direct-to-consumer brands.
With ProfitPeak, you can track repeat purchase behaviour, identify at-risk customers, and design strategies to improve loyalty. This guide outlines key questions, what they reveal, and how to act on them.
1. Cohort Retention Analysis
Prompt | What it gives | Recommendation |
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Group customers by their first purchase month and show their retention patterns. | Reveals how well cohorts retain over time. | Identify cohorts with strong retention and replicate their onboarding or marketing strategies. |
How many new customers have we gained through the first week of x period and how many of them returned in the next 100 days? | Tracks short-term retention for new customers. | Optimise early engagement flows (welcome emails, onboarding, cross-sells) to boost early repeat purchases. |
What percentage of customers who purchased in x period made a second purchase? | Measures the “second-order” conversion rate for a given month. | Introduce post-purchase campaigns or incentives to convert more first-time buyers into repeat customers. |
Identify customers who ordered in x period and also ordered after y period (repeat customers). | Identifies loyal or returning customers in a specific cohort. | Recognise high-value repeaters with VIP perks or targeted offers. |
How many customers made repeat purchases in the last quarter? | Provides a broad view of active returning customers. | Use this to benchmark retention and evaluate success of loyalty or reactivation campaigns. |
What is the churn rate for customers who made their first purchase in Q1 2025? | Highlights the proportion of customers lost over a defined period. | Implement retention strategies for at-risk cohorts, such as win-back emails or loyalty incentives. |
2. Retention by Channel, Product, or Campaign
Prompt | What it gives | Recommendation |
---|---|---|
Compare retention rates of customers by acquisition channel (Meta, TikTok, organic, referral). | Shows which channels bring the most loyal customers. | Allocate budget to channels with higher retention or design nurturing campaigns for low-retention channels. |
Identify products or collections that drive repeat purchases. | Reveals which SKUs encourage loyalty. | Promote high-retention products in marketing and bundle them with new arrivals. |
Analyse retention by first purchase type (full price vs promotion). | Determines whether discount buyers are likely to return. | Use this insight to adjust promo strategy or implement post-promo retention campaigns. |
3. Behavioural & Engagement Signals
Prompt | What it gives | Recommendation |
---|---|---|
How does email or SMS engagement correlate with repeat purchase behaviour? | Shows which channels influence retention. | Increase targeted messaging to highly engaged users and re-engage inactive customers. |
Identify customers who have gone more than X days without purchase but previously were repeat buyers. | Flags dormant or at-risk customers. | Run win-back campaigns, special offers, or personalised reminders. |
Segment retention by average order value or purchase frequency. | Identifies which spend levels or behaviours predict loyalty. | Tailor rewards or VIP programs to high-frequency or high-value repeat buyers. |
4. Predictive & Forecasting Retention
Prompt | What it gives | Recommendation |
---|---|---|
Forecast 90-day retention for customers acquired in the last month. | Provides an early view of future repeat behaviour. | Allocate retention marketing resources based on predicted churn or repeat probability. |
Predict lifetime retention for cohorts acquired during key campaigns (BFCM, holiday, product launch). | Measures long-term loyalty from promotional periods. | Adjust future campaign targeting and nurture sequences to maximise long-term retention. |
5. Churn & At-Risk Customer Insights
Prompt | What it gives | Recommendation |
---|---|---|
Identify cohorts with the highest churn over the last 6–12 months. | Highlights problem segments needing attention. | Design targeted win-back campaigns and engagement flows for high-churn cohorts. |
Segment churn by first purchase type or channel. | Reveals if specific acquisition strategies lead to lower retention. | Adjust acquisition spend or nurture campaigns to improve retention in weaker segments. |
Track churn after first, second, and third purchases. | Shows the drop-off points in the customer journey. | Implement targeted campaigns at key drop-off points to reduce churn. |
Putting It All Together
Systematically asking these questions in ProfitPeak allows you to:
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Understand who repeats and who churns
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Identify which channels, products, or cohorts drive loyalty
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Intervene with win-back campaigns, loyalty programs, or upsells
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Improve long-term profitability by increasing repeat purchase rates
Retention insights are most powerful when combined with CLV data, allowing you to prioritise high-value cohorts for engagement and retention efforts.