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Magento Report – Latency Matrix

“Latency matrix” report shows normal behavior of your customers who have made 1, 2, 3, ... 10, 10+ orders and time it took for them (avg. period in days) to make another purchase. Header values show you the number of orders that were made by each customer group. 1st, 2nd, 3rd, etc are the order of the purchase made by each group. Let’s check data now.

Latency Matrix Magento Report

Order Count row shows total number of orders made by specific customer group. Column 1 - means all customers who have made one order, Column 2 - customer group of users who have made 2 orders, Column 3 - customer groups who have made 3 orders. If the customer has 5 orders, his/her result is shown in the fifth column, etc.

Order Count column shows the order of purchases - first order made by specific customer group, second order made by specific customer group, third order, fourth order, fifth order, etc

Values inside latency matrix report are represented in days. Those are average number of days between orders per specific customer group (number of days between first and second order, second and third order made by customers who have 3 orders in total). Row in the bottom shows the number of customers in the group (amount of customer who have made specific number of orders) basing on whom the average day intervals of the report were calculated. It shows how much you can trust the forecast.


So What is the Report About?

  • The first column value (1x1 value) shows you how many days it took customer to make purchase after registration. Only customers who have made one order are considered here. This value may be equal to 0 or close to 0 if you have checkout as guest option (no registration required) or if the registration is made on the same day when the order is placed.
  • Second column shows you customers who have placed 2 orders. The first line (2nd col., 1st row = 2x1) shows time it took to make the first order after registration. The second number (2nd col., 2nd row = 2x2) shows you the number of days it took between first and second purchase.
  • Third column reflects time between orders of customers who have made three orders, where the first line shows you how many days have passed between registration and first order, second line shows how many days it took to place second order, third line shows the number of days it took to place the last, third order. Customer who have placed the fourth order, are not taken into account in this column.
  • The fourth column shows customers with 4 orders and so on.
  • The last column shows you behaviour of customers who have made 11 orders or more, while the number in 11x11 shows avg time it took to make all further purchases (your loyal customers make a purchase within this period).

Number of days are most likely going to be decreased once following to customers with 5 and more orders. Time difference between their first and second order greatly differs from the same time period of customers with two or three orders.

The forecast of the next purchase of each customer group (column) is the last value from the next customer group. So the forecast for first group (first column) is value from 2x2 cell, the forecast for group with 2 orders is value from 3x3 cell, etc. Customers can potentially place the second, third, etc order and move to the next group within forecasted time period.

Customer count. The values below report show you the number of customers who were taken into account in each group. So in column 1 you can see the number of customers who have made one order, in column 2 you can see the number of customers with 2 orders, etc. The 1st column shows you the customers with 11+ orders. In case there was only one customer in the group basing on whom the behavior is calculated, the forecast may not be that accurate and may vary greatly in the future. In case the amount is high, the forecast is considered as fairly accurate.

Below the report you can see data with the number of customers from whom you expect orders within N days (you do not need to offer discounts to them as they most likely will place a new order anyway), the number of customers who require attention and customers who haven't made any activity for more than 12 month and more are considered as lost customers. Though you may still send them a follow-up and try to get them back. The group with customers who haven't made the order within forecased time period requires special attention. We recommend to export the list of e-mails and send them a good offer right now. Also you do not need to send offers or discounts to customers who are on the way to their next order and are within the forecasted time period.


Why You May Need This Report?

This report allows you to adjust your marketing strategies for customers who are not making purchase within some time period (go beyond typical behavior). In most cases it is used for mail marketing. This way you can save money on offers and make deals only to those customers who went beyond the avg time period and potentially are going to be lost, if you do not make any offer. Customers who haven't made next purchase within forecasted period are considered as potentially lost and you need to "purchase" them (spend money to bring them to your store same way as new customers) after a few month of inactivity.

For example customers, who have placed one order and are inactive for more than 2x2 days (you can see the number in 2x2 cell), should be attracted back with some offer that include related product, e.g. accessories. There's no need to provide discount to such customers, as in most cases they are one-time buyers. A normal e-commerce store has 60% of one-time buyers (avg). You can check your % in the appropriate report of Enterprise version of Store Manager. Though you need to work with those clients to attract them back.

Customers who have made 2 orders (second column) are more likely to become loyal clients and you can offer discount to them. Alternatively free shipping is good as a reward to push them to the 3-rd column. Note, that there’s no need to send them offer until 3x3 days have passed. They may still get back to you without any expenses from your side (discounted value or money for sending mail, if you use paid service).

For loyal customers (with more than 4-10 orders) you can offer good deals and discounts. Most likely they will continue getting back to your store, since they trust you at this point. Still do not be in a hurry to offer discount unless the minimum forecasted time period has passed.


How Often Should You Check This Report?

This matrix should be used to schedule your mails (marketing activities for your existing customers), though you should keep in mind that data in this report are dynamic and may change every day. Mail schedule based on this report requires your attention and should be adjusted at least once a quarter for new store and every 6 months for all existing stores.


What This Report Doesn't Cover/Include

  • Detailed analysis of each customer. We get average numbers only and make forecasts basing on your store data
  • It cannot show expenses on discounts or any other marketing spending
  • This report doesn't show revenue (money that your customer have spent). You can check RFM to get detailed customers' analytics
  • It ignores timestamps. In case you need to check customers who have recently placed order, please check Recency report or RFM report. It divides customers by cohorts and allows you to work with them
  • You shouldn't take decisions on monthly newsletters, social activity or any other marketing must-have's basing on this schedule 🙂 Such activities should be scheduled on the basis of your internal policy
  • This report doesn’t include refunds, cancelled orders, etc
  • This report covers completed orders only. In case you use custom order statuses, the report will calculate order statuses that fit to complete order state (system attribute that cannot be changed in Magento).

IMPORTANT! This report is included in Store Manager for Magento Enterprise version only. Check Plans and Pricing for details

IMPORTANT! Report is built-in and is offered as is. You cannot modify it. Additional adjustments can be made for additional fee.

Note: It is recommended to run all reports on Bridge connection to speed-up the process.

Check other reports offered in Store Manager for Magento at - magento-report/

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