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What is a 'good' split for New to Brand (NTB) vs Repeat customers?
What is a 'good' split for New to Brand (NTB) vs Repeat customers?
Laura North avatar
Written by Laura North
Updated over 2 years ago

This is very subjective and really based on a Seller’s individual business goals:

If a Seller has a really good customer retention rate and the majority of sales (or close to a majority) are coming from repeat customers already, there’s the possibility to focus on growing new to brand customers knowing that it’ll pay off in the future with strong retention rates and CLV. So the growth in new to brand can outstrip the growth in repeat customers.

In the chart below we can see that in Feb ‘22, out of all the customers that bought that month, there were more repeat customers (16,014) than new to brand customers (13,154). This is a strong candidate to focus on attracting new to brand customers.

If on the other hand the goal is profitability and the customer retention rate is not strong and the growth in repeat customers is slow or stagnant, a Seller is possibly better off focusing on increasing the customer retention rate (i.e. getting more people to buy 2 or more times) rather than focusing solely on new to brand customers (who mostly don’t buy again). This can be done via remarketing in sponsored display (or the DSP), ToS-compliant inserts or the Amazon Customer engagement tool.

In the chart below, the repeat customers in any given month are quite stagnant. In May ‘22 for instance there were 7,567 new-to-brand customers but only 208 repeat customers.

If this product is in a category where there should be more repeat customers, we would recommend spending more time and money on trying to increase the retention rate.

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