Order Frequency measures how often a typical active buyer purchases within a period, a core input to lifetime value. Rising frequency signals that buyers treat your marketplace as a habit rather than a one-off. Loyalty programs, dependable supply, and well-timed re-engagement all push it up, compounding revenue from buyers you have already paid to acquire.
Order Frequency
How often an active buyer places orders in a given period.
What it is
Formula
Order Frequency = Total Number of Orders ÷ Number of Active Buyers