Active Customers
Growth
Industry:
Sector Agnostic
Aliases:
Short Definition
Active Customers is a metric that represents the number of unique customers who have engaged with a company’s product or service within a specific timeframe, typically based on a defined action such as a purchase, subscription renewal, or interaction.
Short Definition
Active Customers is a metric that represents the number of unique customers who have engaged with a company’s product or service within a specific timeframe, typically based on a defined action such as a purchase, subscription renewal, or interaction.
Short Definition
Active Customers is a metric that represents the number of unique customers who have engaged with a company’s product or service within a specific timeframe, typically based on a defined action such as a purchase, subscription renewal, or interaction.
Why it matters for Investors
Revenue health: Indicates the portion of the customer base contributing to current sales or subscriptions.
Retention strength: High active customer counts suggest effective retention strategies.
Growth insight: Trends in active customers can signal acquisition success or churn risks.
Why it matters for Investors
Revenue health: Indicates the portion of the customer base contributing to current sales or subscriptions.
Retention strength: High active customer counts suggest effective retention strategies.
Growth insight: Trends in active customers can signal acquisition success or churn risks.
Why it matters for Investors
Revenue health: Indicates the portion of the customer base contributing to current sales or subscriptions.
Retention strength: High active customer counts suggest effective retention strategies.
Growth insight: Trends in active customers can signal acquisition success or churn risks.
Formula
Practical considerations:
Activity definition: Specify what qualifies as an active customer (e.g., a purchase, login, or usage event) and apply consistently.
Timeframe selection: Use a standard period (e.g., 30 days for monthly active customers) to ensure comparability.
Data accuracy: Verify customer identities to avoid double-counting across devices or platforms.
Seasonal factors: Adjust for seasonal spikes (e.g., holidays) that may temporarily boost active customer numbers.
Formula
Practical considerations:
Activity definition: Specify what qualifies as an active customer (e.g., a purchase, login, or usage event) and apply consistently.
Timeframe selection: Use a standard period (e.g., 30 days for monthly active customers) to ensure comparability.
Data accuracy: Verify customer identities to avoid double-counting across devices or platforms.
Seasonal factors: Adjust for seasonal spikes (e.g., holidays) that may temporarily boost active customer numbers.
Formula
Practical considerations:
Activity definition: Specify what qualifies as an active customer (e.g., a purchase, login, or usage event) and apply consistently.
Timeframe selection: Use a standard period (e.g., 30 days for monthly active customers) to ensure comparability.
Data accuracy: Verify customer identities to avoid double-counting across devices or platforms.
Seasonal factors: Adjust for seasonal spikes (e.g., holidays) that may temporarily boost active customer numbers.
Worked Example
Line item | Amount | Notes |
|---|---|---|
Total Purchases | 120,000 | Customers making a purchase |
Duplicate Customers Removed | -8,000 | Excluded multi-channel purchases |
Inactive (No Purchase) | -15,000 | Excluded based on 30-day policy |
Active Customers | 97,000 | Net unique active customers |
Notes:
Activity defined as at least one purchase in the last 30 days.
Excludes 3,000 test accounts identified during the period.
Worked Example
Line item | Amount | Notes |
|---|---|---|
Total Purchases | 120,000 | Customers making a purchase |
Duplicate Customers Removed | -8,000 | Excluded multi-channel purchases |
Inactive (No Purchase) | -15,000 | Excluded based on 30-day policy |
Active Customers | 97,000 | Net unique active customers |
Notes:
Activity defined as at least one purchase in the last 30 days.
Excludes 3,000 test accounts identified during the period.
Worked Example
Line item | Amount | Notes |
|---|---|---|
Total Purchases | 120,000 | Customers making a purchase |
Duplicate Customers Removed | -8,000 | Excluded multi-channel purchases |
Inactive (No Purchase) | -15,000 | Excluded based on 30-day policy |
Active Customers | 97,000 | Net unique active customers |
Notes:
Activity defined as at least one purchase in the last 30 days.
Excludes 3,000 test accounts identified during the period.
Best Practices
Clear activity criteria: Document and communicate the definition of an active customer.
Regular updates: Recalculate active customers periodically to reflect current engagement.
Segmentation: Analyze active customers by product line, region, or customer type.
Retention focus: Use active customer data to inform retention campaigns.
Industry benchmarking: Compare with peers to assess performance.
Best Practices
Clear activity criteria: Document and communicate the definition of an active customer.
Regular updates: Recalculate active customers periodically to reflect current engagement.
Segmentation: Analyze active customers by product line, region, or customer type.
Retention focus: Use active customer data to inform retention campaigns.
Industry benchmarking: Compare with peers to assess performance.
Best Practices
Clear activity criteria: Document and communicate the definition of an active customer.
Regular updates: Recalculate active customers periodically to reflect current engagement.
Segmentation: Analyze active customers by product line, region, or customer type.
Retention focus: Use active customer data to inform retention campaigns.
Industry benchmarking: Compare with peers to assess performance.
FAQs
What counts as an active customer?
A customer who performs a defined action (e.g., purchase, login) within the specified period, per policy.Can active customers decrease?
Yes, due to churn, inactivity, or policy changes.How is duplication handled?
Use unique customer IDs to deduplicate across channels or devices.Is active customers the same as total users?
No, active customers are a subset of total users based on recent activity.What if a customer is active sporadically?
Include if they meet the activity threshold within the timeframe.
FAQs
What counts as an active customer?
A customer who performs a defined action (e.g., purchase, login) within the specified period, per policy.Can active customers decrease?
Yes, due to churn, inactivity, or policy changes.How is duplication handled?
Use unique customer IDs to deduplicate across channels or devices.Is active customers the same as total users?
No, active customers are a subset of total users based on recent activity.What if a customer is active sporadically?
Include if they meet the activity threshold within the timeframe.
FAQs
What counts as an active customer?
A customer who performs a defined action (e.g., purchase, login) within the specified period, per policy.Can active customers decrease?
Yes, due to churn, inactivity, or policy changes.How is duplication handled?
Use unique customer IDs to deduplicate across channels or devices.Is active customers the same as total users?
No, active customers are a subset of total users based on recent activity.What if a customer is active sporadically?
Include if they meet the activity threshold within the timeframe.
Related Metrics
Commonly mistaken for:
Total Users (Includes all registered users, not just active ones)
Active Users (May include non-paying users; active customers focus on revenue-generating activity)
Subscribers (Implies a paid subscription, not general activity)
Related Metrics
Commonly mistaken for:
Total Users (Includes all registered users, not just active ones)
Active Users (May include non-paying users; active customers focus on revenue-generating activity)
Subscribers (Implies a paid subscription, not general activity)
Related Metrics
Commonly mistaken for:
Total Users (Includes all registered users, not just active ones)
Active Users (May include non-paying users; active customers focus on revenue-generating activity)
Subscribers (Implies a paid subscription, not general activity)
Source of:
Index