NetSuite Saved Search Secret for Customer Retention

NetSuite Saved Search Secret for Customer Retention

NetSuite Saved Search

 

NetSuite Saved Search Secret for Customer Retention

Fair Warning: This article is relevant for NetSuite-based businesses with at least two (s) years of business history, as the NetSuite saved searches make it possible to acquire customer data that others may struggle to piece together. If you haven’t been using NetSuite for two years or at all – this information will be useful, but may cause frustration.

A common theme with clients new to my marketing practice is “help us get more traffic, we need new customers”. If you’ve been reading my blog, you know that my approach is to determine whether that’s actually true. One of the saved searches that I use to assess that need is called “Recency Attrition” (you might read my article on NetSuite Saved Searches for Recency first).

Before we get started, you’ll notice that I use the term “buckets” to describe the natural purchase cycle of your customers. So, if you sell grocery items, weekly may be the appropriate bucket size. However, if you sell cars, that cycle or bucket may be 5 years. For the purposes of this article, I’m going to use 365 days for the bucket size – FYI.

Recency Attrition is the measure of how many customers that have purchased in the most recent bucket will not purchase in the next bucket. It’s also useful to know how many of your customers who will buy again next year, won’t buy in the preceding year and so on. This is typically carried out for six years so that you’ll have 5 rolling buckets from which to compare.

To do this, you’ll need to establish saved searches (if your natural purchase cycle or buckets are annual, these numbers should be checked monthly to assess your progress in reducing attrition). Here are the NetSuite saved searches for assessing attrition from purchases that occurred between 1826 and 2190 days ago (year-six):

  • purchase dates >> is within 2190 and 1826 days ago
  • purchase dates >> is within 2190 days ago and 1826 days ago
    [AND] purchase dates >> is within 1825 days ago and 1461 days ago
  • purchase dates >> is within 2190 days ago and 1826 days ago [AND] purchase dates >> is within 1460 days ago and 1096 days ago
  • purchase dates >> is within 2190 days ago and 1826 days ago [AND] purchase dates >> is within 1095 days ago and 731 days ago
  • purchase dates >> is within 2190 days ago and 1826 days ago [AND] purchase dates >> is within 730 days ago and 366 days ago
  • purchase dates >> is within 2190 days ago and 1826 days ago [AND] purchase dates >> is after 366 days ago

The first saved search should be labeled “Year-Six Purchases” – it provides the total number of customers who purchased within that time frame. The second saved search should be labeled “Recency Attrition Year-One (base 6)”. The third is “Recency Attrition Year-Two (base 6)”, and so on. Here is the set of NetSuite saved search formulas for purchase that occurred between 1461 and 1825 days ago (year-five):

  • purchase dates >> is within 1825 days ago and 1461 days ago
  • purchase dates >> is within 1825 days ago and 1461 days ago [AND] purchase dates >> is within 1460 days ago and 1096 days ago
  • purchase dates >> is within 1825 days ago and 1461 days ago [AND] purchase dates >> is within 1095 days ago and 731 days ago
  • purchase dates >> is within 1825 days ago and 1461 days ago [AND] purchase dates >> is within 730 days ago and 366 days ago
  • purchase dates >> is within 1825 days ago and 1461days ago [AND] purchase dates >> is after 366 days ago

Obviously, as we advance toward the most recent year (bucket), the saved searches required will be reduced by one. For each set, you’ll maintain the same naming convention, but you’ll replace “(base 6)” with “(base 5)” for Year-Five comparisons, “(base 4)” for Year -Four comparisons, and so on. Continue creating NetSuite saved searches until you’ve caught up to the current bucket (all you need for the last 365 days is the number of customers who purchased).

Now what do you do with this data?

The most important thing is to look at the range for your “Recency Attrition Year-One” over the last five years. To do this, take the number provided by the NetSuite saved search and divide it by the total who bought in the base year.

Recency-Attrition

In the example above, there were 501 customers in Year-Six (between 1826 and 2190 days ago). Of those, 113 bought again the next year. To get the attrition rate, divide 113 by 501 – then, subtract from 1.0. In the example, that yields 77.45% attrition. Now, when we look across the rolling five years of Year-One Attrition, we see a range of 76.80% to 82.86% attrition. That means it’s likely that only 20% of the people who bought in the last 365 days will buy again in the next 365 days. That’s tragic! If your numbers look like that, what are you doing to reverse that trend. My typical go-to is a reactivation email marketing campaign that hits those customers 340 days after their last purchase.

 

Let me know if you have issues getting this done – as always you can reach out to me at jdixon@aidantaylor.com. By the way, the SEO keyword for this post is: NetSuite Saved Search.

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Creative Commons License
NetSuite Saved Search Secret for Customer Retention by John-Scott Dixon is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Unported License.

2017-04-27T19:06:40+00:00

About the Author:

He has over 20 years of experience managing and leading the Ecommerce efforts of small, medium and large companies. He has held sales, sales management, marketing, operations, IS/IT, legal and executive management positions in start-up to multi-billion dollar organizations. He has also served as an adjunct professor of Ecommerce for the MBA program of the University of Missouri (where he received an MBA concentrated in Direct Marketing in 1989). He led the Ecommerce initiative for Sprint PCS (PCS) and Sprint (FON) as Vice President of Ecommerce. He led the integrated marketing efforts for Insight (NSIT) as Senior Vice President of Marketing and Ecommerce. Today, he is the CEO and Founder of Aidan Taylor Marketing - a marketing agency for small businesses (between $1 million and $20 million in annual revenue).

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