Why frequency matters more than you think for customer value
Original: RF matrix — Frequency dimension
Paul Levchuk
May 29, 2025
6 min read
Article
Intermediate
Summary
Discusses key metrics and analytical techniques for understanding customer retention, churn, and expansion drivers. Covers topics like logo vs. dollar churn, net revenue retention (NRR), cohort-based survival analysis, and identifying expansion opportunities through upsell and cross-sell.
Who This Is For
Marketing Analysts
Growth Marketers
Marketing Managers
Key Takeaways
- One-time buyers make up 40-60% of most businesses, but activation efforts typically only reduce this by 10% maximum
- High-frequency customers (10+ transactions) are worth 50x more than new customers in lifetime value
- Customer transaction cadence (time between purchases) is the most actionable operational metric for retention campaigns
- Purchase likelihood increases up to the 6th transaction, then stabilizes around 81% for repeat purchases
- Even high-value customers churn at 20% rate between transactions, so they need ongoing attention
Tools & Technologies
RF Matrix framework Histogram analysis WOE/IV statistical methods LTV calculation tools
Topics Covered
customer-retention churn-analysis customer-expansion saas-metrics recurring-revenue
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