What is Time to Purchase, and how do you calculate it?
In short – Average time it takes for a visitor to make a purchase after first visit. A key marketplace metrics you should track.
Time to Purchase Formula
Time to Purchase = Total Time from First Visit to Purchase ÷ Number of Purchases
Time to Purchase indicates how long it takes for a potential customer to become an actual buyer. Shorter times suggest an effective user journey and strong purchase intent.
Understanding this metric can help in optimizing the customer journey and timing of marketing messages. It can also inform retargeting strategies for visitors who do not convert immediately. This metric helps businesses understand key operational efficiencies, areas for improvement, and strategic opportunities to drive growth and user engagement.
How can you find your Time to Purchase?
You should generally be able to calculate your Time to Purchase 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.