The question behind this project

After the first purchase, who comes back?

An order arrives, the customer leaves, and the shop waits for another visit. We follow groups of customers over time to see how many return and how their buying habits differ.

Read the analysis
Painting of customer purchase histories on a monitor, with repeat orders, customer cards, and packed parcels.

E-commerce An analytical case study

Customer repeat purchases and retention over time

Does marketplace activity translate into customers who return?

Olist purchase records

The finding

Acquisition, order value, and repeat purchasing answer different questions. A cohort view makes the second purchase visible.

Analytical work

Connect marketplace reporting with customer-level cohort, survival, and segmentation analysis.

FIG. 01Retained evidence

How many customers bought again?

3.0%

of customers placed at least two orders in the retained observation window.

2,801 repeat customers93,358 customers total

Now follow one cohort: January 2018

6,842 first-time customers. Share purchasing in each later month:

M10.34%
M20.37%
M30.29%
M40.29%
M50.16%
M60.18%

Monthly activity is not the cumulative repeat-purchase rate. A customer can appear in more than one month.

Olist customer-retention artifacts · 2016-09-15 – 2018-08-29 · Source counts. This population is separate from the marketplace aggregation.

01

Start with the customer, not the order ID

Assign customers to the month of their first purchase using the persistent customer identifier. Follow that same group over time. More orders in a calendar month can reflect newly acquired customers without demonstrating stronger retention.

02

Make the denominator visible

Monthly retention divides returning customers by the original cohort size. A blank future cell means the cohort has not reached that age. Kaplan–Meier analysis accounts for customers whose observation window ends before a second purchase.

03

Distinguish customer value from basket value

Cumulative revenue per customer grows with both order count and order value. Compare these separately before interpreting repeat customers as bigger spenders. First-order characteristics can identify groups to study, but an association does not establish an intervention effect.

Decision supported

What to do with this evidence

Frame a second-purchase experiment with a fixed follow-up window. Use the marketplace view to locate operating patterns and the cohort view to evaluate customer behavior.

What this analysis cannot establish

  • The marketplace and cohort analyses use different populations and aggregation paths. Do not compare headline totals without matching order status, period, customer identity, and revenue definition.
  • Later cohorts have less follow-up. Geographic and first-order associations are observational, not causal estimates.

Continue the investigation

Inspect the evidence behind the story.