The Business Metrics group consists of four indicators related to customer retention and value. These include the Average Customer Churn Rate Indicator, the Projected Customer Lifetime Indicator, the Per Person Average Indicator and the Lifetime Value of Customer Indicator.
None of the indicators in this group are affected by the settings of the Locations and Date Range devices. Each indicator in this group will function appropriately whether or not guests ever connect to the location’s Wi-Fi system
Average Customer Churn Rate Indicator
Customer churn is a measure of customer attrition. A churn rate is calculated by counting the number of customers present at the beginning of a period, counting the number of those same customers who are still present at the end of the same period and dividing the number of lost customers by the number of customers present at the beginning of the period. The resulting percentage represents the number of customers who have stopped doing business with the company during the period. (N.B., New customers that visit the location for the first time during the period are not counted when calculating churn.)
The Average Customer Churn Rate indicator shows the churn rate for one or more customer locations. Unlike most other dashboard indicators, this indicator uses a drop-down menu located on the indicator, which allows users to select a month or quarter to examine.
The Average Customer Churn Rate indicator will not populate with data until a full calendar months’ worth of data has been collected. For example, if a customer goes live with Bloom Intelligence on May 5th, no data will be shown in this indicator until the first week of July. Similarly, a full calendar quarter (Jan-Mar, Apr-Jun, Jul-Sep, or Oct-Dec) must be completed before quarterly data will be available.
Projected Customer Lifetime Indicator
The Projected Customer Lifetime indicator shows an approximation of the length of time that an average customer may be expected to remain loyal to a location or group of locations, before ceasing to patronize that/those location(s). When the drop-down selector in the Average Customer Churn Rate indicator is set to a monthly value, the Projected Customer Lifetime will be shown in months. When the drop-down is set to a quarterly value, it will be shown in quarters.
In addition to the lifetime in months or quarters, an estimated number of customer lifetime visits will also be shown.
Per Person Average Indicator
The Per Person Average (PPA) indicator displays the average value of an individual customer transaction at the selected location(s). The PPA is required to generate the customer Lifetime Value metric, as well as to calculate the return on investment (ROI) within campaigns created in the Automated Marketing Suite.
Presently, there are two ways for the data used by this metric to get into the application. These are:
- Bloom Intelligence customers may enter location sales data through the Locations page in the Administration link in the menu, or
- Location sales data may be pulled directly from a Bloom intelligence customer’s point of sale (POS) system.
Once gross sales data are in the application, Bloom Intelligence looks up the recorded traffic for the date range entered, and divides sales out by traffic to get a value per visitor.
In a planned future release, the Per Person Average figure will be entered directly into the Bloom Intelligence application and will not be calculated by the application.
Currently-supported POS systems include Aloha, Micros, POSitouch, InfoGenesis, DinerWare, Brink POS, Xpient, Maitre’D, Azbar, Veloce, and Squirrel Systems.
Lifetime Value of Customer Indicator
The Lifetime Value of Customer indicator displays an approximate total value that an average customer will spend with a location, during their anticipated customer lifetime.
The Lifetime Value of a Customer is calculated by multiplying the Per Person Average by the estimated number of customer visits from the Projected Customer Lifetime indicator.