- Repeat customer rate. Repeat customer rate is the backbone of customer retention.
- Purchase frequency.
- Average Order Value.
- Use customer accounts.
- Improve your customer support.
- Start a customer loyalty program.
- Send engaging emails to customers.
- Offer a discount or credit to return.
How do you increase a repeating customer?
7 Most Effective Ways to Increase Repeat Purchases
- Incentivize your customers with points.
- Grow your customer base through referral programs.
- Improve customer retention with VIP programs.
- Create exclusive discounts for loyal customers.
- Use email retargeting to win customers back.
How do you encourage repeat sales?
12 Customer Retention Strategies to Drive Repeat Sales
- Put Your Customer Follow-Ups on Autopilot.
- Look for Clues in Your Customer Reviews.
- Ramp Up Your Content Promotion.
- Encourage Your Customers to Promote Their Purchases.
- Regularly Recommend New Products.
- Treat Your Customers as a Community.
How do you get customers to buy again?
7 Tried and Tested Tips to Keep Customers Coming Back to Your Store
- Offer instant gratification.
- Turn your shop into a destination rather than just a store.
- Stay in touch.
- Make e-commerce work for you.
- Know your customers and cultivate relationships.
- Engage with customers on social media.
- Be socially responsible.
- Your turn.
How do you motivate customers to buy your product?
6 Ways to Persuade Customers to Buy
- Know the difference between a benefit and a feature.
- Use vivid but plain language.
- Avoid biz-blab and jargon.
- Keep the list of benefits short.
- Emphasize what’s unique to you or your firm.
- Make your benefits concrete.
What are the 4 buying motives?
They are: a) Emotional patronage buying motives. b) Rational patronage buying motives. been influenced by emotional patronage buying motives.
How do you inspire customers?
5 Ways to Inspire Loyalty Through Customer Care
- Listen. It’s easy for companies large and small to rely on assumptions and impulses to tell them what their customers want.
- Respond. People want answers to their questions and comments.
- Be Human.
- Remove Barriers.
- Keep Your Word.
How do you attract customers to your store?
8 Ways Retail Businesses Can Attract New Customers
- Buy online, pick up in store.
- Match online prices (or value)
- Provide inventory information online.
- Send out promotions via SMS.
- Optimize your website for local searches.
- Host events.
- Increase curb appeal.
- Create a lounge space (with WiFi)
What is a repeat customer? 5 ways to gain repeat customers
First published on March 12, 2015, and most recently updated on December 12, 2021 You can certainly think of a couple of well-known firms that have developed a cult following of loyal customers. However, while not every company can be the Apple or Starbucks of their field, any company can become indispensible to its consumers if they invest in their customer experience and place a high value on the customer connection. Put the needs of your customers first, and repeat business will almost certainly follow.
- Answer each and every inquiry, no matter how little
- Make an impression
- Customers should be given greater control over their experience. Take action in response to client feedback
- Do good in the world
What is a repeat customer?
Both repeat customer and return customer are concepts that are distinct but linked.
- Customers that have previously purchased from your firm and have decided to purchase from you again are known as returning customers. Clients that purchase from you on a regular basis and are regarded loyal clients are referred to as repeat customers.
How do you identify a repeat customer?
When a firm has client data, it may recognize a repeat customer more easily. For example, customer loyalty measures such as customer lifetime value, customer retention rate, and repeat purchase rate are all important to consider. Agents will require customer service technology that will allow them to immediately recognize a repeat client when they contact the company in order to provide a positive customer experience. Zendesk’s customer service solution equips workers with relevant client context, such as a repeat customer’s account type, contact information, and past support requests, to better serve them.
Why returning customers are important
- We are all aware that client retention is less expensive than new customer acquisition. According to BainCompany, a 5 percent improvement in retention is associated with at least a 25 percent rise in profit on average. For the following reasons, repeat clients are a valuable asset to have in your business: Customers that return again and time again generate steady revenue. Because consumers who are truly loyal will be less likely to be influenced by rival offers or discounts, you may be more certain in the amount of money that comes in. Customers that have already purchased from you are more likely to trust you. Customer retention is simpler than customer acquisition because repeat clients are more likely to have a connection with you, have created trust in you, and have more confidence in your capacity to deliver. Word-of-mouth marketing is a result of returning customers. When you have a satisfied consumer, they are more likely to suggest your product or service to their friends or colleagues, as well as to promote it on social media. Customers who come back have a higher lifetime value. Repeat customers are more likely to produce more value over the course of their lifetime as they continue to experiment with new products and services based on their previous experience with your brand.
It is possible to extract the most value out of your existing customers by investing in retention techniques such as customer loyalty programs and excellent customer service, among other things.
5 easy ways to encourage more repeat customers
Customer retention is something that every business strives for. It is a reliable indication of the health and success of a brand. However, there is no quick fix for establishing a healthy consumer base. Consider the following approaches to gaining your consumers’ loyalty, respect, and ultimately their recurring business.
- According to research, over half of customers would transfer to a competitor firm after having a negative customer service experience with one of their current vendors. To keep clients satisfied, you must assist them in resolving their difficulties and providing answers to their inquiries—even if the queries are out of the ordinary. Once, a customer service request was received from Thrive Market, an online marketplace for organic and speciality foods. The consumer wanted to know if a certain type of ghee was prepared under a full moon. However, it turned out to be a valuable lesson in providing excellent customer service. In the words of Michael Shaughnessy, Thrive Market’s workforce management analyst, “it’s a terrific indication of how passionate our consumers are and our desire to share and equal that passion.”
Create a memorable experience
- Almost half of customers would transfer to a competitor firm after a single negative customer service encounter, according to research. Keep in mind that you must assist clients in solving their difficulties and providing answers to their queries, even if the answers are unusual. Once, a customer service request was received from Thrive Market, an online marketplace for organic and speciality foods. The consumer wanted to know if a certain type of ghee was produced under a full moon. However, it turned out to be a valuable lesson in the importance of good customer service in the first place. According to Michael Shaughnessy, Thrive Market’s workforce management analyst, “It’s a terrific indication of how passionate our consumers are and our desire to share and equal that passion.”
Give customers more choices
- It feels wonderful to have a variety of possibilities. Sephora, the beauty retail firm that has become a household name, has revolutionized the beauty sector by bringing various brands together under one roof and providing customers with the luxury of choosing what they want. Beauty Insider users may now customize everything from which free samples they receive to which prizes they redeem through the company’s loyalty program, Beauty Insider. Stitch Fix is another another company that is expanding its product offerings to clients. However, while they initially established their reputation selling stylist-curated clothing subscription boxes, they have now expanded their offering to include an online shopping experience where customers may choose from a variety of garments that are available to buy as a la carte at any time. The work appears to have been fruitful. In the third quarter of 2021, Stitch Fix claimed a 20% increase in active clients compared to the same period the previous year.
Act on customer feedback
- If you want to encourage repeat purchases, you must have a process in place to get feedback from your customers. Using customer satisfaction surveys as a starting point is a fantastic idea, and many businesses use a Voice of the Customer (VoC) program to gain valuable insights from their current customers. Responding to client feedback demonstrates to your consumers that you are paying attention and that you genuinely care about their experience. Here’s an illustration: In order to assist clients who were having difficulty making the shift to online fitness courses, Glofox, a business that provides club management software, redesigned their whole product roadmap. They halted everything they were doing and were able to build this feature for their platform in less than a month after stopping everything. Glofox provided the image. To learn more about how shifting course won Glofox loyal clients for life (probably) and positioned the firm for worldwide development, listen to our chat with Glofox on the Sit Down Startup podcast.
Do something good in the world
- Customers are increasingly expecting companies to take a position on topics that are important to them. And, sure, this does have an impact on customer behavior. According to a survey conducted by Edelman, two-thirds of customers make purchases based on their views. This implies that companies can no longer remain neutral
- Instead, they must demonstrate their commitment to their principles via action. Donate to organizations that are aligned with the objective of your company. Encourage your employees to participate in community service. Internal policies should be updated to suit your company’s ideals. Starbucks, for example, recently declared that CEO compensation will be tied to achievement of diversity objectives. One more example: In the run-up to the 2020 presidential election in the United States, more companies stressed the significance of voting, and some even provided reduced hours or paid time off to workers who chose to vote.
The secret reason customers become repeat customers
At the end of the day, it’s unlikely that discount coupons or spectacular antics would be enough to win over your clients and encourage them to make another purchase. It is the whole experience they had and the way you made them feel that will turn them into a repeat client. So, whenever in doubt, remember to be nice, helpful, and human.
Guide to conversational support
Customer service should be delivered in the manner of a conversation. This free guide will help you get started.
11 Powerful Strategies to Increase Your Repeat Purchase Rate
If you own an ecommerce business, you are well aware of the importance of raising your average repeat buy rate. What, on the other hand, causes a purchase to become a devoted repeat customer? In this blog article, we’ll go over the advantages of improving your repeat purchase rate, as well as how to go about doing it on your own. If you put each of the methods outlined in this piece into action, you’ll be astonished at how rapidly your revenue may improve when you tap into your existing client base.
Why focus on increasing repeat purchase rate rather than getting new customers?
When it comes to marketing, most eCommerce firms spend 80 percent of their cash on gaining first-time consumers. However, did you know that just 8 percent of a typical ecommerce store’s revenue is generated by its consumers, accounting for 40% of total revenue? When you first start out, you’ll need to acquire new clients, and as your business grows, you’ll require additional consumers. However, many ecommerce organizations might benefit from allocating a larger portion of their money to client retention.
Most studies have found that the average repeat purchase percentage for ecommerce businesses is between 20 and 40% percent.
This is where it gets interesting: according to Shopify, once a customer returns a second time, their likelihood of making a purchase increases to 45 percent.
In order to arrive to this point, you must first entice clients to return for a second, third, and fourth time. Let’s get started with the 11 data-backed techniques that can help you raise your average recurring customer rate.
1 – Get to know your dashboard
Consider devoting some time to get more familiar with the dashboards of your marketing platform. Step 2, Track and Benchmark, is dependent on dashboards being up and operating at the time of writing. With the help of tools like Databox, you can get an even more comprehensive view of your funnel in a single location, combining data from numerous sources into a single panel.
2 – Track and benchmark
Understanding the current state of your company’s average repeat purchase rate is the first step in increasing that rate. Taking benchmarks may not be necessary for the remainder of this article’s recommendations; but, without establishing a baseline, your team will be unable to determine the return on investment from applying each technique. Let’s go through some of the metrics you should be keeping note of: The repeat purchase rate is calculated as follows: Number of returning customers divided by the total number of customers.
- If you are attempting to improve something, you must keep track of your progress.
- Consider the following: the easiest method to increase your repeat purchase rate would be to cease accepting new clients, but it would be a bad idea!
- As your company expands, you want to see a steady increase in the number of total sessions booked.
- The conversion rate is calculated as follows: Number of visitors who make a purchase divided by total website traffic.
- A successful ecommerce website must not only attract new clients, but also motivate them to make a purchase or participate in an activity.
- Email Opt-Ins = Can we reach out to these consumers again (for free) in the future?
- Even if you have a large number of followers on social media platforms such as Facebook and Twitter, you may not be able to contact them in an organic way.
- The ability to track the growth and health of your email database will be critical to some of the tactics we’ll discuss next.
- The goal of boosting your average repeat purchase rate is, in the end, to increase the average customer lifetime value (CLV).
- Purchase Frequency is calculated as the number of orders divided by the number of unique customers.
- A basic method for calculating purchase frequency is as follows: take the total number of orders placed by a group of unique consumers within a certain time period and divide it by the total number of customers.
Suppose you receive 12000 orders from 2000 consumers in a year. Our buy frequency is six times a year. That implies you spend an average of 2 months between purchases.
3 – Build an email list
Sending regular, customized emails to consumers and followers of your company is a tried-and-true ecommerce approach that has been proved to increase repeat sales. You do not have to pay to reach your email list, unlike retargeting advertisements, Google Adwords, or social media ads. Keep in mind, however, that while sending emails is simple, it DOES come at a cost. Each email you send captures your clients’ attention, and if they don’t find your communications interesting enough to read further, they may begin to disregard your brand altogether.
Examples of trigger emails that you may (and should!) be sending include the following: Welcome Email Sequence- With a welcome email sequence, you can introduce new subscribers and consumers to your brand’s narrative as well as its additional services.
Abandoned Cart Series- An ecommerce mainstay, abandoned cart emails have a conversion rate of 4.64 percent, compared to the average conversion rate of.17 percent for newsletters.
4 – Use personalization
Personalization extends much beyond simply addressing clients by their first and last names. It is important to remember that the more you connect with your recurring client base, the more information you will have about their tastes and preferences. Make use of this information to personalize your communications and promotions using marketing automation, such as by doing things like: Product suggestions that are unique to you – Using the appropriate tools, you may tailor the product offerings in your emails to each individual user depending on their prior behaviors on your website.
Sending emails at different times of the day might be personalized.
Sending emails at the right moment has been demonstrated to greatly enhance engagement by scheduling communications to be sent out when clients have previously clicked or viewed your emails.
5 – Make Ordering Seamless
“I have been addicted to purchasing stuff from Amazon Prime using my iPhone. At all hours of the day, including late in the evening when I should be sleeping, I place orders.” -Amazon Prime Addict, if you will What is it about purchasing from Amazon that is so addictive? It’s a simple process. Shopping is enjoyable, and receiving items is enjoyable. Being able to receive items the same day you purchase them is much more enjoyable! Making several entries for your payment card details and retyping your address is not enjoyable!
Customers should be given the opportunity to save their information in an account AFTER they have entered their information and placed their order in order to eliminate friction.
Using this method, you may shorten the purchasing process for returning consumers, which is a wonderful approach to raise your overall average repeat purchase rate.
6 – Answer all questions and comments
Even though 80 percent of businesses feel they provide outstanding customer service, just 8 percent of customers agree with them. A satisfied customer is a returning customer. Providing excellent customer service and being attentive to consumers should be expected. If you want to establish long-term connections with your clients, responding to their inquiries as soon as possible is critical. Don’t forget that long-term consumers often spend more money and grow more loyal with each new transaction.
7 – Offer Incentives
Offering coupons and discounts to customers is a tried and true method of gaining repeat business. Customers may become accustomed to waiting for discounts if coupons are utilized excessively by some firms, and for these brands, coupons may not be the best solution. Although when utilized properly, coupons have the potential to be an excellent tool for bringing clients who may otherwise abandon ship back into the fold.
8 – Use Retargeting Ads (maybe)
Even though re-marketing may be an extremely efficient method of improving your average repeat purchase rate, it is not always the best option for every company. Take a look at your consumer character. What do you want people to remember about your company in the long run? The reality is that the majority of people find advertisements to be irritating, so irritating that Emarketer has projected that they will be banned from the internet. 30 percent of internet users will be using an adblocker by the end of 2018.
If you do decide to employ retargeting advertising, make sure tofollow recommended practices like implementing a burn pixelso that individuals who have previously paid don’t continue you see your ad.
A short term triumph is not worth losing long term clients.
Category your consumers according to how long it has been since they last purchased something, and tailor your marketing to each segment.
9 – Think about your box!
Even while re-marketing may be an extremely efficient method of improving your average repeat purchase rate, it is not always the best option for every company. Assume the role of a typical customer. What do you want people to remember about your company in the long run. Because the majority of people find advertisements irritating, Emarketer has created a project to measure how bothersome advertisements are. By the end of 2018, 30 percent of internet users will be utilizing an adblocking application.
Make careful to follow recommended practices, such as employing burn pixels, if you opt to utilize retargeting advertisements to ensure that visitors who have previously purchased do not see your ad again.
A short-term victory is not worth the potential loss of long-term clients.
Retargeting based on a data-driven timeline can be used to persuade customers to make more purchases. Determine how long it has been since your consumers last purchased and tailor your marketing to the needs of each group of clients.
10 – Calculate your ecommerce churn rate
Small changes in churn rates may make the difference between success and failure for subscription-based businesses, but ecommerce organizations don’t generally worry about ecommerce attrition rates since they’re more difficult to assess. Let’s have a look at this.
The Traditional Churn Rate Calculation
The computation of the fundamental churn rate for subscription-based businesses is pretty straightforward. To calculate retention, you start with the number of paying subscribers you have at the beginning of a given period and count how many of those subscribers are still active at the conclusion of that time. Subscriber Churn Rate is calculated as follows: Subscribers Lost During a Specific Period / Total Subscribers
The Ecommerce Churn Rate Calculation
The estimation of the churn rate in ecommerce is a little more challenging. Because clients do not actively notify you when they are no longer planning to make future purchases from your company, you must establish a time after which a customer is considered no longer active, often known as “churned.” eCommerce Churn Rate = Number of Customers Whose Status Changed From Active to Inactive in a Given Period divided by the total number of active customers in that period. With another way of putting it, you want to find clients who have had continuous purchasing streaks and then anticipate when those streaks will come to an end.
What is the average churn rate for ecommerce?
A lot of people ask this question, however there is no such thing as an average churn rate for ecommerce firms since there is no one standard ecommerce churn rate formula that is utilized across the board.
How do you determine which customers are active?
There are a variety of strategies you may employ to divide clients into active and churned customers (inactive). To do this, one approach would be to evaluate customer purchase frequency data and determine the threshold at which a customer’s chance of making another purchase declines dramatically. For example, if you discover that 90 percent of consumers who do not purchase from you again within 180 days do not return to your store, you may take 180 days of inactivity as a hint that a client has churned from your business.
According to the statistics provided by Shopify, repeat clients are more likely to make a second transaction following the first.
11 – Think cycle instead of funnel
You’ll constantly need to be bringing in fresh leads to the top of your sales funnel to keep it running smoothly. Most successful ecommerce firms, on the other hand, do not cease their marketing efforts once a customer has purchased something. The very first purchase is only the beginning! Consider the rest of your customer’s lifetime after they make their first purchase. Numerous components of the post-buy experience are sometimes overlooked, but ideally after reading this piece, you will be better equipped to take on the challenge and increase your average repeat purchase rate to levels never before achieved.
6 Secrets for Getting Repeat Customers That Stick Around
As small- and medium-sized business owners, you’re undoubtedly already familiar with the concept of word-of-mouth marketing. Customers who are pleased with their purchases will suggest their friends, who will in turn refer their friends, and so on. People will remember great contacts with your company if you provide them with a wonderful customer experience. They will eventually return to your organization. Some of the fundamental principles that make up Inbound Marketing can be summarized as follows: Not to put Brian Halligan and Dharmesh Shah on the spot, but how can we evaluate the effectiveness of this process?
The notion that retaining customers is more advantageous than acquiring new ones has been propagated, but where are the evidence to back up this assertion?
In this piece, we’ll go through those statistics to better understand why client retention is just as crucial as – if not more important than – customer acquisition. Afterwards, we’ll go over some helpful pointers for retaining clients in your company’s establishment.
11 Repeat Customers Statistics
- Repeat consumers account for 40% of ecommerce income, despite the fact that they account for just 8% of all customers overall. An increase of 5 percent in client retention leads to a profit increase of more than 25 percent. (Adobe) (BainCompany)
- A 2 percent boost in client retention has the same effect as a 10 percent decrease in expenses on the bottom line. Customers that have an emotional bond with a business have a 306 percent greater customer lifetime value and will refer the firm at a rate of 71 percent, compared to the average rate of 45 percent, according to (Leading on the Edge of Chaos). (Motista) Your top 10% of consumers spend three times more each purchase than your lower 90% of customers, and your top 1% of customers spend five times more per order than your lower 99 percent of customers. In the United States, it takes five American shoppers and seven European shoppers to generate the income of a single repeat client, according to RJMetrics. According to Adobe, 50 percent of loyal clients will make further purchases from their favored businesses. (InMoment) Ninety percent of consumers are likely to make a second or subsequent transaction. According to HubSpot Research, the average recurring consumer spends more money in months 31-36 of their connection with a company than they do in months zero-to-six of their association with a business. According to Bain & Company, 77 percent of customers have maintained long-term connections with their favourite businesses for ten years or more. Customers who return nine times are nine times more likely to convert than first-time visitors, according to InMoment. (Adobe)
These figures demonstrate that recurring clients are just as profitable as new consumers, if not more so. Small- and medium-sized firms, on the other hand, may find it difficult to secure the necessary permits. Customers may flee to a rival if they encounter even the smallest impediment in a market where there are hundreds of competing companies. So, how can you ensure that your clients continue to buy from you after their initial purchase? Continue reading for some best practices that you can do to increase client retention.
6 Secrets for Getting Repeat Customers That Stick Around
When I was in college, I had a favorite pub that I frequented with my friends on a regular basis. What was it about going there every week that kept me going? The bartenders recognized my name, my favorite drink, and what I had been doing to that week, which was a pleasant surprise. It wasn’t pushed on them; they were truly interested in developing relationships with their clients. In a similar vein, you may customise client experiences by memorizing specific information about them. To illustrate this, if they mentioned their family, follow up with a question about them when they return.
2. Use personal forms of communication.
As a student, I had a favorite tavern where I would spend much of my time with my friends after classes were finished. What was it about going there every week that kept me coming back for more? As it turned out, the bartenders recognized me and recalled my favorite drink as well as my plans for the week. It wasn’t imposed on them; they were truly interested in developing relationships with their clients. By memorizing specifics about your consumers, you may also customise their experiences. To illustrate this, if they mentioned their family, follow up with a question about them on their next visit.
3. Share relevant news and information.
When I was in college, I had a favorite pub that I would frequent with my buddies on a regular basis. What was it about going there every week that kept me coming back? The bartenders, on the other hand, recalled my name, my favorite drink, and what I had been up to that week. It wasn’t forced; they were truly interested in developing relationships with their clients. Additionally, you may customise experiences by recalling specifics about your consumers’ previous interactions with you. For example, if they mentioned their relatives, you could want to inquire about them during their subsequent visit.
4. Practice excellent customer service.
Customer service is, without a doubt, a crucial component of your company’s operations. Your ability to maintain a connection with clients after they have made a transaction indicates a total commitment to their requirements and objectives. A typical error is to place too much emphasis on acquiring new clients at the expense of maintaining existing ones. Existing clients are already committed to your brand, and they do not require exceptional service to maintain their loyalty. Instead, first-time clients require a compelling reason to make another purchase, necessitating the provision of above-and-beyond customer care.
Customer attrition is a direct result of this mentality. You should strive to provide the greatest possible customer service to every customer, regardless of whether it is their first or hundredth transaction with you.
5. Maintain a quick response rate.
The importance of customer service in your organization cannot be overstated. It indicates a genuine attention to the requirements and aspirations of your consumers that you can maintain contact with them after they have made a transaction. Focusing on acquiring new consumers at the expense of maintaining existing ones is a typical blunder. Existing clients are already devoted to your brand, and they do not require exceptional service to retain their loyalty. Customer service that goes above and beyond is required for first-time consumers in order to encourage them to make a repeat purchase.
Customer attrition is the result of this mentality.
6. Create successful customer loyalty programs.
Customers that participate in an appealing customer loyalty program are more likely to stick with your business. But, what factors contribute to the success of a client loyalty program? After all, since the program is free and there are no repercussions for quitting, what is it that keeps your clients coming back for more? According to a survey conducted by Joseph Nunes and Xavier Dreze, the most difficult challenge for businesses to overcome is attracting clients to participate in a program.
- Following the completion of eight stamping slots on the loyalty card, Group 1 received a free car wash, whereas Group 2 received a loyalty card that promised a free vehicle wash after completing ten stamping slots.
- Despite the fact that both groups were eventually required to stamp out the exact same number of spaces, Group 2 had a completion rate that was double that of Group 1.
- More information on retaining customers may be found in our article on enhancing customer experience.
- and was last updated on August 21, 2019.
7 Powerful Strategies to Increase Repeat Purchase ｜Appier
Obtaining new clients is far more expensive than maintaining a current customer base. Customers who return again and again account for a considerable share of total income. According to studies, repeat customers may account for more than 40% of a company’s income, and boosting customer retention rates by only 5% can boost earnings by 25 to 95% of a company’s sales. It is critical for firms that sell replenishable products, such as home goods, pet food, cosmetic basics, baby products, and other items that are used regularly over a period of time, to encourage customers to replenish their supplies on a regular basis.
- What Is a Recurring Purchasing Pattern?
- These clients are very familiar with your brand and are frequently motivated by a need for ease in their purchases.
- The buying path of recurring consumers differs from the trip of first-time purchasers because of these characteristics.
- Repeat clients, on the other hand, are already aware of what they want and will proceed to make a purchase of the desired item.
- In addition, a repeat client is more likely to return for more services.
- So, how can you entice clients to make a second, third, and fourth purchase from you?
Customers who receive personalized post-purchase involvement will have a favorable and long-lasting opinion of your company, and they will remember your brand when they need to make another purchase.
You may utilize a marketing automation tool to send this material in real time across various channels like as email, in-app messaging, push notifications, and more.
Trigger action in real time by pressing a button.
When it comes to acquiring replenishable things, time is critical to ensure success.
Real-time marketing automation allows you to segment your consumers based on their actions and send them appropriate notifications when it is time to refill your inventory.
You could then send them a trigger email with a reminder to encourage conversions, but only those who have finished checkout within the past 24 hours would be included.
Make transactional emails as efficient as possible.
It was also discovered that the conversion rates were significantly greater than those of bulk mailers.
For example, an order confirmation for morning cereals might be a nice location to propose a popular chocolate milk to pair with the cereals.
Increase the percentage of the wallet that is based on outside interests.
This behavior helps you to understand what people are interested in on your site, but it does not take into consideration their activity and interests on external sites.
The ability to combine and analyze first- and third-party data can aid in uncovering the customer’s interests outside of your owned channels, and this is where artificial intelligence can assist.
When utilized effectively, discounts, promotions, and coupons may be quite beneficial.
You may also use artificial intelligence to identify clients who haven’t made a purchase in a while but are likely to do so if offered incentives, and then re-engage them with appropriate offers to encourage them to do so again.
As a result, before sending out coupons, be certain that you have a sound promotional marketing strategy in place.
Take into consideration customer loyalty programs.
Reduced prices, early access to new items, and an interactive points system are all effective strategies to keep consumers coming back, especially for replenishable goods that customers need to purchase on a regular basis.
Use retargeting to boost the number of conversions.
When using retargeting, you may approach clients through advertisements even if they were browsing your website as a guest, without requiring them to create an account.
In addition, machine learning can assist you in taking this even further by recognizing trends in customers’ purchase histories in order to anticipate their future behavior and discover which potential consumers are more likely to purchase.
It is normal for marketing to be focused on client acquisition throughout the early phases of a company’s growth and development.
A smart customer retention plan that is supported by AI and analytics may help you keep your customers coming back and produce repeat purchases on a consistent basis.
* Have questions about how you can utilize an artificial intelligence-based marketing automation platform to boost client engagement and promote repeat purchases? Contact us now. Get in contact with our staff right now to schedule a private consultation.
Customer Retention 101: Grow Your Business by Selling More to Current Customers
You’ve probably heard it a hundred times before. It is less expensive to encourage existing consumers to make a repeat purchase than it is to acquire new customers. Many organizations, particularly those in the crowded ecommerce sector, are finding that the cost of clicks and conversions is growing all the time, and this is especially true. When was the last time you searched for ways to re-engage clients and entice them to return to your business? When it comes to client retention, now is an excellent moment to put up a unified plan that will benefit all of your present customers after the sale.
What is customer retention?
Increasing the number of repeat customers and increasing the profitability of each existing client are two goals that businesses strive to achieve through customer retention. In order to deliver and extract additional value from your existing client base, customer retention tactics must be implemented in both directions. To guarantee that the consumers you fought so hard to recruit remain with you, have a positive customer experience, and continue to get value from your products, you must first ensure that they are satisfied.
When it comes to your retention program, how much effort and resources should you allocate?
When to focus on customer retention
The stage of your store’s lifetime has a significant impact on whether you should prioritize customer acquisition or retention efforts. A store that just opened its doors today is considerably different from one that has been in operation for several years or more. Please refer to the timeframe provided below for basic suggestions on the potential investment levels for your store. 1. When you’re just getting started, there’s one thing you should be concentrating on: attracting clients to your shop.
- Concentrate on developing ideas and methods that will assist you in expanding your consumer base.
- Getting some traction: You now have clients and are making intermittent sales, which is a good sign.
- My tip would be to begin with client retention email marketing that are geared toward persuading prior customers to do business with you again.
- Consistent growth: While you aren’t yet an online behemoth, your revenues are on the rise.
- You may want to consider implementing a referral and/or loyalty program, as well as being more serious about using marketing automation tools.
- One of the most typical challenges faced by merchants of this scale is figuring out how to keep up with the competition.
- At this point, you should be serious and methodical in your attempts to retain employees.
- Well-established: At this point, your shop has successfully navigated its way through the early hurdles.
- Now is an excellent moment to place a strong emphasis on retention.
- Each month, the imaginary light purple business retains 5 percent of those consumers, whereas the dark purple store retains 10 percent of those customers.
The 5 percent increase can result in quick growth, which is tough to match with traditional acquisition strategies, as you can see. Aside from the stage at which your business is now at, you’ll want to customize your approach based on the products you offer.
How retention fits your business
What you sell has a significant influence on which marketing method you should choose. A retailer specializing in high-end leather furniture will have a distinct personality from a store specializing in tea and coffee, for example. When consumers purchase high-value things on a regular basis, a store’s customer lifetime value will be the highest possible (CLV). These are the sorts of businesses that stand to benefit the most from a well-executed retention plan. In general, as you travel more to the right along this matrix, you should begin to place an increasing emphasis on retention.
It all comes down to striking a balance that works best for your organization.
The customer retention metrics that matter
Your business’s product has a significant influence on the approach you should employ. A business specializing in high-end leather furnishings will have a distinct personality from a store that sells tea and coffee, for instance. The maximum customer lifetime value will be achieved by a shop whose consumers often purchase high-priced things (CLV). A robust retention plan will have the most impact on these sorts of establishments. For the most part, as you move farther to the right on this matrix, you should begin to place an increasing emphasis on retention.
What matters is achieving the right balance for your company’s specific needs.
- The percentage of repeat customers
- The frequency of purchases
- And the average order value (AOV).
1. Repeat customer rate
Customer retention is based on the percentage of customers that return again and again. Customer retention is defined as the percentage of consumers that are willing to make a second purchase from you. When it comes to analyzing the effectiveness of your retention strategy, measuring your repeat purchase rate is a fantastic way to start. The higher this measure is, the more likely it is that clients will return to your establishment.
How to calculate repeat customer rate
You might easily become disoriented when it comes to calculating retention metrics because there are so many variables to take into consideration. Fortunately, measuring your repeat customer rate is extremely simple and only necessitates the collection of two pieces of information:
A. Number of customers with more than one purchase
Specifically, it refers to the amount of clients who have made more than one purchase within a given period of time. I recommend taking a look at the full year to get a sense of the larger picture.
B. Number of unique customers
This is the total number of different consumers that made purchases from your shop within a specific period of time (usually a week). It should be noted that this is not the same as the number of orders. Fortunately, this is computed for you by Shopify in your reports and analytics. You may do this manually if you like. All you have to do is divide the number of consumers who have made more than one purchase by the total number of customers. You can see how to write out this equation by writing it out like this: Customers who have purchased more than once / Customers who have purchased only once
2. Purchase frequency
Purchase frequency tells you how frequently clients return to your shop to make a purchase from you.
In light of the fact that repeat customers account for a large amount of a store’s annual sales — depending on the product category — this is very crucial to remember.
How to calculate purchase frequency
Your consumers’ return to your shop indicates how frequently they are making purchases from you. In light of the fact that repeat customers account for a large amount of a store’s annual sales — depending on the product category — this is very crucial to consider.
3. Average Order Value
Purchase frequency indicates how frequently customers return to your shop to make purchases. This is especially crucial when you consider that, depending on the product category, repeat customers can account for a large amount of a store’s annual income.
How to calculate Average Order Value
Your average order value should be computed using the same time period that you used to calculate your repeat buy rate, just as you did for your purchase frequency. To figure out your store’s income, all you have to do is divide your annual revenue by the number of orders it completed. This amount is calculated for you by Shopify reports as well. You can see how to write out this equation by writing it out like this: Total Revenue Received / Number of Orders Placed
Customer value: The big picture of retention
Increasing customer value is the ultimate aim of retention marketing, regardless of whether you intend to enhance these indicators one at a time or all at once. Customer value is the final piece of the jigsaw since it allows you to determine how much each individual customer is genuinely worth to you and your company. In order to calculate it, you must already have a grasp on your buy frequency and average order amount, among other things. By combining these two numbers together, you will be able to see the true results of your effort and appreciate the significance of retention marketing strategies.
Now is the greatest time to develop a client retention plan and examine how boosting each of these indicators might benefit your company’s overall growth.
Strategies to boost customer retention
The need of having a plan to maintain our present consumers has been discussed, as has the importance of adopting strategies to gain new clients. We’ve also considered what metrics we should use to ensure that we stay on pace. Now, let’s go through some concrete suggestions that you can put into action to increase client retention.
- Make use of client accounts
- Improve your customer service
- Implement a customer loyalty program
- Send consumers interesting emails
- Provide a discount or credit in exchange for returning
- And more.
1. Use customer accounts
Customer accounts may be a double-edged sword. Accounts, on the one hand, can make repurchasing easier by providing consumers with fast access to prior orders as well as pre-filled shipping information, on the other hand. On the other side, customer accounts are typically viewed as too big of a commitment for new consumers. As a result, when given the choice, many consumers choose to check out as a guest rather than using their credit card. So, how can you efficiently deploy and encourage customer accounts while also ensuring that first-time customers do not experience any conversion barriers?
If you’re on Shopify and your customer accounts are optional, you may send customersdirect invitationsto urge them to activate an account once they’ve finished a transaction.
2. Improve your customer support
Assistance systems assist you in communicating with your customers in an effective manner and providing them with the appropriate degree of support. A support system may be beneficial both before and after the sale since it allows you, or a customer service representative, to connect with the consumer in a clear and understandable manner. If you have a live chat or help desk tool accessible, you can transform a customer query into a sale, or a customer complaint into a resolution, regardless of whether the client comes in on-site, by email, or through social media.
- And that’s not even taking into consideration the importance of client feedback, which can be used to better your products as well as your entire customer experience.
- Your clients will thank you for your efforts if you can assist them avoid difficulties and get the most of your items.
- Depending on your niche, product mix, and margins, sending a small gift to your best customers can be a great way to remind them to return while also adding an element of surprise and delight, which can increase customer satisfaction.
- Delight has its place in the world.
- Consider the fact that in a world where everything is instantaneous and done through the internet, individuals sometimes just need a change of scenery.
- When you handwrite something, it demonstrates to your consumer that you have taken the time to address them individually.
- These factors go a long way toward earning a customer’s loyalty, which can result in a lifelong customer.
3. Start a customer loyalty program
In order to earn valuable rewards, customers are encouraged to make more purchases through loyalty programs, which are also known as customer retention programs. Loyalty programs are an effective way to increase purchase frequency because they motivate customers to make more purchases in order to earn valuable rewards. When this happens, it becomes a lucrative trade for both you and your customers: they receive greater value with each purchase, and you gain from their continued patronage. Giving new clients welcome points when they sign up for an account might motivate them to continue investing in the program.
Customer loyalty programs may be as easy as awarding consumers after their second purchase or after a certain amount of money has been spent.
Additionally, you may use automated loyalty applications to reward your clients for a range of acts they perform while in your business, which can save you money.
4. Send engaging emails to customers
In the same way that purchase frequency is the foundation of customer retention, email marketing is the foundation of client engagement and the foundation of your customer retention toolset. Your clients’ email addresses provide you with the option to continue creating a relationship with them both before and after they make a purchase. Ensure that every message you send adds value to your customer’s experience by checking the following boxes: You face the danger of losing them if this does not happen.
- It is undeniable that email is a channel that generates conversions.
- Send a thank-you email to customers a week after their first transaction to express your appreciation for their business.
- It is possible to increase the effect of this initial email by promoting goods that are complementary to their original purchase.
- These endorsements will raise the perceived worth of each recommended product as well as the likelihood that a buyer will purchase it.
- Beard King performs an excellent job doing this, sending us tailored emails every two to three weeks, in which they promote new goods or offers.
- For businesses with items that are perishable, consumable, or otherwise require regular replenishment, understanding the product’s shelf life and sending timely emails can be the most effective method of reactivating inactive clients and bringing them back into the fold.
- Luxy Hair, for example, states in their FAQ section that their hair extensions will last on average three to six months, but can last up to a year depending on how often they are worn.
- These emails would assist in educating a first-time purchase, keeping Luxy in the forefront of the client’s mind, and encouraging repeat business, all while providing a positive customer experience.
- Getting customers to return depends on your ability to demonstrate to them why making an extra purchase is a worthwhile investment of their time and money.
Ecommerce Email Marketing 101 is a course offered by the Shopify Academy. Ecommerce specialist Drew Sanocki reveals his strategy for building automated email marketing campaigns that create connections and produce sales. Enrollment is completely free.
5. Offer a discount or credit to return
In general, I would advise you to be cautious when it comes to discounting. Discounting your items forces you into a never-ending race to the bottom, where clients become accustomed to seeing prices drop on a regular basis, ultimately resulting in a decrease in income for your business. The danger of discounting is increased even further when margins are tight. When discounts are offered to first-time buyers, on the other hand, I truly like it! To encourage customers to return to your site after their initial purchase, send them a discount code for their next purchase with their transaction.
You may make that nudge more stronger by offering them a discount that is greater than the customary 10 percent.
You may also wish to experiment with giving customers credits to spend at your business (for example, $10 towards any purchase) rather than a percentage discount (i.e.
Keep customers to grow your business
Your present client base is the most valuable asset your business possesses. Customers are already familiar with your brand, they are familiar with your products, and they are pleased with your service. Concentrating your time and attention on enhancing the experience for this group, rather than always attempting to attract new consumers, may be a strong approach to boost sales for your shop and increase profits. Please accept my thanks for the contributions made by Kirsten Burkard to this blog article!