Purchase Frequency (PF)

Purchase Frequency (PF)

Refers to the rate at which customers make purchases within a specific timeframe.

It offers businesses with insights into customer behavior and potential for growth. A higher purchase frequency suggests greater customer engagement and loyalty, indicating sustainable growth opportunities. Additionally, tracking purchase frequency enables businesses to enhance customer experiences, plan marketing campaigns, and maximize customer lifetime value (CLV) by increasing both order frequency and average order value. By understanding and leveraging purchase frequency data, companies optimize their strategies to drive repeat purchases and foster long-term customer relationships.

Related Terms

Blocking

Also called facing, zoning or fronting, a retail merchandizing concept where all products of the same

Gross Margin

The difference between the revenue generated from sales and the cost of goods sold, expressed as