Your business growth depends on your customers making not only that first purchase, but also repeat purchases.
Working on increasing customer repurchases doesn’t mean you completely forget about acquiring new customers. It just means you also need to have a strategy in place on how you will actively encouraging repeat purchases.
When you plan to increase your customers’ repurchase rates, always start with defining the timeframe you are looking at. For example a fashion e-commerce business usually looks at 30day/60day/90day/180day and 360day repurchase rates. An automotive business on the other hand will be looking at repurchase rates between 2 to 15 years.
You then need to calculate the current repurchase rate based on historic customer data. Map out all the customer transactions and check for customers that have repurchased in your defined time periods. Calculate the percentage of those that have repurchased.
Once you know what your repurchase rate is per period, you can then put a strategy in place on how to both increase the repurchase rate and shorten the repurchase time period. This will mean more sales and more sales sooner for your business. Make sure you measure and check your rates again to see if there is an improvement.
So what if your business model does not include repeat purchases at all? Let’s say you own a bridal boutique and your focus is on that first purchase only. Your marketing will need to focus on maximizing that initial purchase. You’ll likely focus on customer acquisition marketing, referrals from previous customers and making sure you sell your main product at the highest profit possible and increase a customer’s purchase value through encouraging add-on products such as veil, shoes, lingerie or bridal jewelry.
If your business model does foresee repeat purchases, then you should do all the above AND put a plan in place to increase your repurchase rates.
Remember: You are playing a long game. Don’t worry so much about your initial repurchase rate. What you want to see is a positive upwards trend that shows your repurchase strategies are working. A successful repurchase strategy will increase your repurchase rates all while maintaining excellent relationships with your customers.