How to increase the number of repeat purchases in e-commerce
Any store has regular and new customers. Many companies pay more attention to the second group because they believe that new customers help to increase income. But not many people know it's cheaper to work on retaining regular customers than to invest money in attracting new ones. The facts confirm it: The chance of selling to a new customer is only 5-20%. For a regular customer, that number can be as high as 70%.
Regular customers are ready to spend 300% more in stores that they already frequent. Therefore, it's important to pay attention to customer feedback in order to build long-term relationships.
Let's do a simple analysis. If 9 out of 10 customers only make a purchase one time, then you need to work on improving your work with customers.
Why regular customers are more important than new ones
Almost everyone has a favorite store for specialty products, cosmetics, clothing, or food, where they purposefully go if they need to make a purchase. They are regular customers of the store and have a positive impact on the company's profit.
Without regular customers, any business is always in suspense and waiting for customers. There is no profit without regular customers. For this reason, it's important to pay attention to regular customers who choose a brand for the quality, level of service, list of products, or other factors. They come back to shop again and again. This is the main confirmation of their loyalty, which helps to make your business stable with a strong customer base. Regular customers buy more and shop more often. They can significantly increase your conversion rate.
The most important task of any company is to retain customers and build strong relationships. If your store has regular customers, then you have already accomplished customer loyalty to some extent.
Regular customers have a high lifetime value. Therefore, it's easier to them sell goods and services. You spend fewer resources promoting your products than on potential new customers; plus, you get more purchases as a result.
How to increase volume of repeat purchases
To increase the number of repeat purchases and turn new customers into regular ones, you should establish a feedback mechanism with them. There are different methods for this.
If your users are making a purchase, ask them for an email address so that you can inform them when new products or discounts appear. Another option is to remind customers that they haven't made a purchase for a long time. There must be a hook in the letter that will allow you to catch a person's attention.
People value personalized content. Therefore, don't write letters of a general nature, but rather send them to a specific person. To attract more conversions, add an incentive like free shipping, a bonus, or a gift.
It's harder to keep a customer if your company doesn't have a well-developed loyalty program. They programs allows a person to feel special and connected with your brand. For many people, this is a motivator to make additional purchases.
Loyalty program options may include:
- Rewards for purchases.
- Bonuses for each completed order.
- Discounts for regular customers.
Feedback is important in the field of e-commerce. Reviews are a proven option to help understand the interests of your customers in order to push them to make future purchases. To solicit reviews, just offer the client a discount on their next order in exchange for an honest review or another bonus.
By studying the responses of real people, you can better understand your strengths and weaknesses. Plus, a review is a good opportunity to find out people's interests and use that information to prepare an email.
Analysis of purchase histories and user behavior
It's impossible to increase the number of repeat purchases without data about customers. This may include information about their purchase histories, browsing habits, search patterns, and whether they've shown interest in certain products. This information allows your company to offer people only what they are most likely to buy.
If you are focused on increasing profits and sales, use our Evinent Analytics platform to create customer profiles, analyze purchase models, communicate with customers, and review advertising campaign performance. Are you ready to try it? Make a request here to get started.