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Definition

Recency refers to the length of time since a customer's last purchase. Firms in non-contractual situations with identifiable customers will count customers of various recencies. For example, customers of recency one year or less are customers who bought within the last year. A "six-month customer" is someone who purchased from the firm at least once within the last six months.[1]

Purpose

Recency is used to monitor firm performance in attracting and retaining customers—specifically, to track changes in the number of active customers, irrespective of the number of transactions (or the dollar value of those transactions) made by each customer.

Construction

Recency: The length of time since a customer's last purchase.

References

  1. ^ Farris, Paul W.; Neil T. Bendle; Phillip E. Pfeifer; and David J. Reibstein (2010). Marketing Metrics: The Definitive Guide to Measuring Marketing Performance (Second Edition). Upper Saddle River, New Jersey: Pearson Education, Inc. <http://www.amazon.com/Marketing-Metrics-Definitive-Measuring-Performance/dp/0137058292>


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