A returning customer offers information about the relationship built with the business. The repetition of the purchase may depend on the quality of the service, comfort, price or lack of alternatives. Observed behavior does not automatically reveal motivation.
To analyze the return I propose to compare groups of customers entered in the same period. Mixing newly acquired customers and customers present for years makes it difficult to interpret the variations. It should also be considered the natural frequency of the purchase: a durable product and a consumable product require different windows.
A loyalty initiative should be evaluated on the additional result. If an advantage is granted to those who would have bought anyway, they can reduce the margin without changing the relationship. Reasonable comparisons and a reading of the effects over time are needed.
Quality also emerges from resolved demands and recurring problems. A complaint closed quickly does not prove that the underlying cause has been removed. Connecting return, profitability, and service helps you choose where to intervene. The client remains a person with varying needs; the indicators describe behaviors, while the dialogue helps to understand the reasons.