Purchase frequency

Purchase frequency describes how often customers buy within a chosen period. For an average, divide relevant purchases by the unique customers making those purchases during that same period; CFI uses this basis in its customer-value calculation.[1] State the period explicitly, because a frequency without a time unit or defined customer population is not readily comparable.

For a store, higher frequency could mean customers return more often, but could also reflect splitting purchases across orders. Examine order value and margin alongside the average. Distinguish frequency from repeat purchase rate: the latter asks how many customers buy again, whereas frequency is also sensitive to a small group of very active buyers. Durable goods should not automatically be compared with regularly replenished products.