Purchase Frequency
The average number of purchases a customer makes within a given time period.
The average number of purchases a customer makes within a given time period.
Why It Matters
Purchase frequency is a key lever in the LTV formula (AOV × Frequency × Lifespan). Increasing how often customers buy has the same revenue impact as acquiring new customers—but at a fraction of the cost since you're not paying acquisition costs again.
Practical Example
Scenario
A supplements brand's customers purchase 2.3 times per year on average. They implement a subscription option and targeted replenishment reminders.
Calculation
After 6 months, frequency increases to 3.1 purchases/year. At $75 AOV and 10,000 customers:Result
Revenue impact: 10,000 × 0.8 additional orders × $75 = $600,000 additional annual revenue from existing customers.
Pro Tips
- 1Calculate frequency by customer segment. VIP customers might buy 6x/year while one-time buyers (by definition) are at 1x.
- 2Implement subscription and save for consumables—it dramatically increases frequency while also improving predictability.
- 3Send replenishment reminders timed to average product usage. Use purchase date plus expected usage time.
- 4Cross-sell complementary products to create more purchase occasions. Someone buying coffee might also buy mugs or grinders.
Common Mistakes to Avoid
Frequently asked questions
Put it to work
Related Terms
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7.7x blended return at scale — seven figures attributed, across five straight quarters · Modern Prairie · Apr 2025–Jun 2026 Read the Modern Prairie case study
