Revenue from existing customers against new ones, this year
The short answer
Split this year's revenue into revenue from existing customers, who bought before the year began, and revenue from customers acquired during the year. Compare the split and each group's spend per customer with last year. A rising new-customer share can mean strong acquisition or weak retention, and spend per existing customer tells you which.
Why it matters
Total revenue growth hides whether the business is growing its base or replacing lost customers. Knowing how much comes from customers you already had shows whether retention is holding and how dependent the year is on acquisition spend.
The question to ask
Copy this into Lexi as written.
What the answer looks like
Illustrative output on sample data
Illustrative example: how Lexi answers this for a toy retailer. It splits revenue between existing and new customers for two years.
- This year: $84 million. Existing customers $55 million (65%), new $29 million.
- Last year: $80 million. Existing customers $58 million (73%), new $22 million.
What the data shows
Revenue grew 5%, but existing-customer revenue fell by $3 million while new-customer revenue rose by $7 million.
What it means
Spend per existing customer held steady, so fewer existing customers came back. Growth this year rests on acquisition spend.
What to do
Put retention ahead of acquisition in next year's plan, starting with customers who stopped buying.
Want me to list the existing customers who stopped buying?
Frequently asked questions
What is returning customer revenue percentage?
It is the share of revenue in a period that comes from customers who had bought before the period began. It shows how much the business relies on its existing base, and changes in it reveal shifts in retention and acquisition over time.
Is a falling share from existing customers always bad?
Not always. Strong acquisition can lower the share while existing revenue holds steady. Check existing-customer revenue in dollars and spend per existing customer. If both are flat or rising, acquisition is the story. If they are falling, retention needs attention.
Should reactivated lapsed customers count as existing or new?
Count them as existing, since they bought before, but report them separately from retained regulars. Reactivation and retention need different tactics, and mixing them can hide a fall in one behind a rise in the other.