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How do I use the Customer Retention - Details report?

Become an expert on the Customer Retention - Details report!

Helen Kang avatar
Written by Helen Kang
Updated over 2 months ago

The Customer Retention - Details report surfaces customer data on both retention and activity segments.

Retention segments help businesses measure retention behavior, while activity segments measure customer activity levels at a glance.

This report is useful for:

  • Finding the number of retained customers in a period.

  • Contacting customers before they are "lost."

  • Finding the proportion of customers in each retention segment.

Not all customers are included in the report, including:

  • Employees

  • Removed or merged customers

  • Customers who haven't checked in


Pulling up the Report

  1. Navigate to Reports from the left panel > Marketing > Customer Retention - Details > View.

  2. Specify the date range from the date picker.

  3. Apply any additional filters.


Understanding the Report

The Customer Retention - Details report includes 29 data fields:

  1. Customer Name: Customer's name.

  2. Email: Customer's email.

  3. Retention Segment: A measure of all three RFM scores that classifies customers into different retention segments.

    • Newly Retained

    • Retained

    • Third-Party Retained

    • Lapsing

    • Lost

    • Dormant

  4. Activity Segment: A measure of a customer’s ‘activity’ at a glance — the sum of the FScore and MScore.

    • Champion

    • Loyal

    • Valuable

    • Beginner

    • At Risk

  5. Recency Score: A measure of a customer’s recency to a business. The RScore is determined as the number of ‘days since the last check-in.’ See below for more information.

  6. Frequency Score: A measure of a customer’s frequency at a business for the last year. See below for more information.

  7. Monetary Score: A measure of a customer’s spend for the last year. Monetary spend is inclusive of all orders (classes, apparel, food, beverage, etc.). See below for more information.

  8. Date Joined: Date when the customer joined the studio.

  9. First Check-In: Date of first check-in.

  10. Last Check-In: Date of last check-in.

  11. Last Order Date: Date of last purchase order.

  12. Membership Status

    • Blank (if the customer doesn't have a membership)

    • Pending_customer_activation

    • Active

  13. Total Remaining Credits: Remaining credits are available in their account.

  14. Total Check-Ins - 1 week

  15. Total Check-Ins - 2 weeks

  16. Total Check-Ins - 1 Month

  17. Total Check-Ins - 3 Months

  18. Total Check-Ins - 6 Months

  19. Total Check-Ins - 1 Year

  20. Total Check-Ins - Third-Party - 1 Year: Check-ins through a third-party platform (e.g., ClassPass, FitReserve, etc.).

  21. Total Guest Check-Ins - 1 Year: Guest check-ins for guests brought by the customer.

  22. Total Check-Ins - All Time: Total check-ins across all locations.

  23. Total Order Count - 1 Year: Total order count within a year span.

  24. Spend Currency: The currency of the customer's purchases.

  25. Total Spent - 1 Year: Total (monetary) spent within a year span.

  26. Next Reservation Date: Date of next reservation.

  27. Home Location: The home studio is selected in the customer's account.

  28. All Locations: Location(s) where the customer has a transaction history (reservation or purchase).

  29. Customer ID: Customer's unique ID generated by the system.


Understanding RFM Scores

To better understand customer retention, Mariana Tek leverages the concept of RFM Scores. RFM Scores (Recency, Frequency, and Monetary Value) are calculated on a scale of 1 to 5 for each category and customer using their last year of business history. 1 being the lowest possible score and 5 being the best possible score in a category.

The RFM model attaches these scores to each customer to measure the value each customer brings to a business. The model then breaks these customers out into Retention and Activity segments.

Recency Score (RScore): A measure of a customer’s recency to a business.

The RScore is determined as the number of ‘days since the last check-in.’

The average recency is an RScore of ,3 which equates to a check-in recency of 30 to 40 days.

  • RValue: Days Since Last Check-In

    • ex. 3 Days Since Last Check In= 3 → Recency Score: 5

    • If a customer has 0 check-ins or orders → default: RECENCY SCORE = 0. They will appear in the report as they have 0 check-ins.

  • Recency Score Scale

Frequency Score (FScore): A measure of a customer’s frequency at a business for the last year.

The FScore is determined as the number of check-ins and orders in the year, with an applied normalization factor (for customers with less than 1 year of history). Because frequency takes both check-ins and orders into account, in determining the FScore, check-ins have a weight of 0.85 and orders have a weight of 0.15.

Average frequency is an FScore of 3, which equates to a customer having 13 to 23 check-ins/orders across the year, effectively 1 - 2 check-ins/orders a month.

  • FValue = 0.85 * # of Checkins in 1 year * (1 year normalization factor) + 0.15 * # of Orders in 1 year * (1 year normalization factor) → Frequency Score

    • ex. 0.85 * 64 checkins (365/365) + 0.15 * 10 orders (365/365) = 55.9 → Frequency Score: 5

    • If a customer has 0 check-ins or orders → FREQUENCY SCORE = 0

  • Frequency Score Scale

Monetary Score (MScore): A measure of a customer’s spend for the last year. Monetary spend is inclusive of all orders (classes, apparel, food and beverage, etc). Average monetary spend is an MScore of 3, which equates to $350 to $525 of spending in a year.

  • MValue = Total spend in 1 year

    • ex. $485 total spend in 1 year → Monetary Score: 3

    • If customer spent $0 → default: MONETARY SCORE = 0

  • Monetary Score Scale


Understanding Retention Segments

Retention Segments are a measure of all three RFM scores, which classifies customers into different retention segments.

What are activity segments?

  • Activity Segment: A measure of a customer’s ‘activity’ at a glance — the sum of the FScore and MScore; by summing the frequency level and the monetary value level of a customer, we can define activity buckets to help understand customers' varying levels of activity:

The beginner activity segment applies only to customers with 1 or 2 total check-ins all time; once a customer has a 3rd check-in transition to the appropriate activity segment, ‘At Risk’

Filters (columns affected):

  • Active Locations - only the locations the employee has access to will be shown

  • Retention Segment - options are: ‘New’, ‘Newly Retained’, ‘Retained’, ‘Third-Party Retained’, ‘Lapsing’, ‘Lost’, ‘Dormant’

  • Activity Segment - options are: ‘Champion’, ‘Loyal’, ‘Valuable’, ‘Beginner’, ‘At Risk’


FAQ

How do I locate Customers who have never checked in to a class?

  • Customers who have never checked into a class will not appear in the Customer Retention - Details report, but they will appear in the Customers report.

    • The Customer report now has Retention and Activity segments for all customers. You can also filter down by the Retention and Activity segment.

    • To find ‘New’ customers without a check-in, set the date filter to be the last 3 months and set the Retention Segment filter to ‘New.’

    • If you are looking for ‘Dormant’ customers (no check-ins and created an account over 3 months ago), set the date filter to be past the last 3 months and set the Retention Segment filter to ‘Dormant.’


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