How do I assess an online store’s customer lifetime and repeat purchase pattern?
Ask for order data by customer, not just by month. Group customers by the period of their first purchase and see how many order again and how soon. A store whose sales depend mostly on new buyers behaves differently from one with a loyal base, and the difference should shape what you ask and what you plan.
Request an export that lists each order with an anonymized customer identifier, date, products and discount used. From it, you or your accountant can build cohorts: everyone who first bought in a given month, followed forward. Look at whether the second order arrives quickly, slowly or never.
Ask what drives repeats. Consumables, subscriptions and replacement items behave differently from one-off gifts or furniture. Check whether repeat buyers come back on their own, or only after an email or a discount. Compare their average order size with first-time buyers, and note how much they cost to win back.
Be careful with averages. A few large customers can hide a mostly one-time audience. Ask about refunds and returns by cohort, and whether the seller’s customer list can be used under its privacy promises after a sale. Your lawyer can advise on that last point. Treat any lifetime figure from the seller as a claim to test against the raw orders, and never as a forecast. If the store runs a loyalty scheme or subscription, ask how many members are active and how the benefits are tracked, since those programs shape repeat behaviour.
Key takeaways
- Ask for order-level data so you can follow customers from their first purchase.
- Find out whether repeats come on their own or only after promotions.
- Test the seller’s lifetime claims against raw orders, and check the privacy promises on the list.
- Check whether loyalty or subscription programs explain the repeat orders.
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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