What is Number of Active Buyers, and how do you calculate it?
In short – Total number of buyers who have made purchases in a specific period. A key marketplace metrics you should track.
Number of Active Buyers Formula
Number of Active Buyers = Count of unique buyers with purchases during the period
The Number of Active Buyers reflects the number of unique customers who have made at least one purchase on the marketplace within a certain time frame. This metric is crucial for understanding the demand side and overall customer engagement.
Tracking active buyers helps in evaluating the effectiveness of marketing campaigns, customer retention strategies, and the overall user experience. An upward trend suggests a growing customer base and market share.
How can you find your Number of Active Buyers?
You should generally be able to calculate your Number of Active Buyers with tools you already posess. If that's not the case, signing up for an analytics tool may make sense.
Among others, twosided is one of the tools you could consider. Out-of-the-box, you'll get over two dozens marketplace KPIs and detailed tracking for your supply, demand and other factors that determine marketplace health.
Explore other metrics
Net Promoter Score (NPS)
A measure of customer loyalty and satisfaction based on user feedback.
Average Order Value (AOV)
The average value of orders placed on the platform.
Supplier Lifetime Value (SLV)
The projected revenue generated by a supplier over their tenure on the platform.
Repeat Purchase Ratio
The proportion of customers who make repeat purchases over a given period.
Customer Lifetime Value (CLV)
The projected revenue a customer will generate during their relationship with the business.