A high repurchase rate is every marketer's goal and the reason is not far-fetched. A high repurchase rate is when customers return to buy from you and for your business, it means:
- Low churn rate
- More revenue
- Customer loyalty building
- A solid customer base
Your repurchase rate is a very crucial metric in e-commerce. With it, you get to know when you are slacking in your customer retention game and when you are on the right track.
In this blog post, you will learn about the strategies to increase repurchase rate and the role of e-commerce analytics in increasing repurchase rate for your business.
What is the Repurchase Rate?
The repurchase rate is the amount of customers that return to buy from you in a specific period of time. A high repurchase rate means a business is retaining its customers.
A low repurchase rate means there is a need for change in your marketing approach.
So, how do you determine what is high and what is low when it comes to repurchase rate?
Alex Schultz, the former Vice President at Facebook said "If you get 20-30% of your customers coming back every month to make a purchase, you should do well as a business"
Studies have shown that online retailers have an e-commerce repeat customer rate of 28.2%.
However, according to Shopify, this varies from industry to industry:
- Cosmetics industry: 25.9%
- Apparel industry: 26%
- Supplements industry: 29.1%
- Coffee industry: 26.9%
- Pet products industry: 31.5%
Depending on the type of industry you are in, your repurchase rate should not be below the average rate.
Here is how to calculate your repurchase rate:
7 Strategies to Increase Your Repurchase Rate As an E-commerce Business
Here are 7 ways to increase your e-commerce repurchase rate and get your customers to return for more purchases:
1. Excellent Customer Purchase Experience
An excellent customer experience will have your customers come back for more.
A seamless check-out process, mobile-friendly websites, and great product pages are some of the ways to ensure a great customer experience.
Easily accessible customer support is another important factor. If at all, a customer has an issue with their shopping, a quick response from you to sort it out will go a long way.
Another way to ensure a great and seamless customer experience is to leverage technology.
This can be in the use of chatbots and automation, the right e-commerce analytics tool, and allowing your customers to try out your products online with augmented reality among others.
Intentionality is needed in ensuring excellent customer service and you will enjoy the reward with an increased repurchase rate.
2. Customer Loyalty and Reward Programs
Another way to increase your Repurchase rate is through customer loyalty and reward programs.
This can be in the form of discounts on the next purchase or a gamefield point system where your customers gain some amount of points on each purchase which they can use when it reaches a certain amount.
Customer loyalty and reward programs also help to increase customer engagement and develop brand advocacy.
3. Show off your reviews on your website
Include screenshots and other user-generated content on your website.
According to statistics, a whopping 79% of people say user-generated content highly impacts their purchasing decisions. User-generated content also leads to a 29% higher conversion rate than campaigns that do not use it.
You can display reviews on your home page and on your product description pages for your customers to hear what past customers have to say about your brand and your products.
4. Follow up with abandoned carts
A great strategy to increase your repurchase rate is to follow up with customers with abandoned carts via email.
Here is an example of a follow-up email on abandoned carts
There are a number of reasons your customers abandoned their carts. Following up with an email is a great way of pointing their attention back to it, especially at the end of the month when most people get paid.
Studies have shown a reduction in abandoned carts towards the end of the month.
5. Customer Feedback
Getting feedback from your customers lets you know your areas of strength and shortcomings in customer retention.
Using the feedback, you can modify your marketing efforts for a better repurchase rate.
6. Personalized Marketing
Personalization makes your customers feel seen and special. You can utilize hyper-personalization in your marketing by leveraging on an e-commerce analytics tool such as MagicBean
With the MagicBean Repurchase rate, you can get insights into which customers have the highest propensity to purchase from you again.
You also get to see items each customer is likely to buy based on their past interaction with your store allowing you to craft hyper-personalized messages that suit each customer.
7. Using the right e-commerce analytics tool
Leveraging an e-commerce analytics tool changes your marketing strategies. E-commerce analytics tools allow you valuable and holistic insights into your business performance and how customers are interacting with your business.
Using such insights, you can tailor your repurchase marketing campaigns to drive the maximum results.
How to Increase your Repurchase rate with the MagicBean Repurchase App
MagicBean is a holistic e-commerce analytics tool that gives you valuable insights into key e-commerce metrics ranging from first purchase to repurchase rate and more.
Here is the key repurchase rate information you will get from the MagicBean e-commerce analytics app and how you can leverage each insight for an increased repurchase rate:
1. Measuring Your Repurchase Rate
When you launch a marketing campaign, you bring customers into your marketing funnel leading to a broad top of the funnel.
The MagicBean repurchase app helps you measure repurchase rate by evaluating how many customers move to the next stage of the marketing funnel
Typically, as you move down the funnel, it becomes more narrow as more customers tend to fall out, not coming back for a repurchase. MagicBean repurchase app intervenes at this point by showing you which customers are at risk of falling out.
By getting insights into such customers, you can launch targeted campaigns to retain them. You also get to see the amount of customers in each level of the funnel and the average order value.
2. Key Drivers of the Next Purchase
Identifying the major drivers of your customer's next purchase helps you shape your marketing approach. Leveraging on key drivers such as brand type, product, and categories increases your repurchase rate.
3. Product recommendation for repeat customers:
For your repeat customers, MagicBean repurchase app also recommends products they are likely to buy based on their past interaction with your brand. Using this key insight, you can create hyper-personalized messages for your customers.
With these recommendations, you can also upsell and cross-sell to customers, increasing their total spend.
While focusing on driving new customers, it is important to keep in mind that previous customers are gold and it is easier and less expensive to get them to buy again.
Marketers must be intentional in drafting marketing plans to get these customers to keep coming for more.
An eEommerce analytics tool such as MagicBean gives you insights into necessary information that will guide you in getting the best out of your marketing efforts and retaining your customers.