{"id":112,"date":"2020-08-20T19:21:48","date_gmt":"2020-08-20T19:21:48","guid":{"rendered":"https:\/\/shippingchimp.com\/blog\/?p=112"},"modified":"2021-05-28T06:06:25","modified_gmt":"2021-05-28T06:06:25","slug":"purchase-repeat-rates","status":"publish","type":"post","link":"https:\/\/shippingchimp.com\/blog\/purchase-repeat-rates\/","title":{"rendered":"The Ultimate Guide to Increasing eCommerce Purchase Repeat Rates"},"content":{"rendered":"\n<blockquote class=\"wp-block-quote\"><p>Satisfaction is a rating. Loyalty is a brand<\/p><cite>-Shepp Hyken<br>Customer Service Expert<\/cite><\/blockquote>\n\n\n\n<p>A surefire way to build loyalty among customers is by increasing repeat purchase rates. As an eTailer, you are probably laser focussed on bringing more shoppers to your website. From polishing your website theme to optimizing SEO.&nbsp;<\/p>\n\n\n\n<p>However, did you know that a repeat customer is likely to increase your revenue by 16X compared to a new shopper?<\/p>\n\n\n\n<p>In the eCommerce ecosystem, customer loyalty must be earned over and over again. Besides, your competition is just one click away. In this hyper-competitive and rapidly changing world, how can you keep shoppers coming back to your site? The key lies in strategically engineering the repeat purchase process.&nbsp;<\/p>\n\n\n\n<p>In this article, we discuss the following topics:<\/p>\n\n\n\n<ul><li>What is the repeat purchase rate?<\/li><li>How to calculate the repeat purchase rate?<\/li><li>Why is the repeat purchase rate considered a growth lever?<\/li><li>How to increase repeat purchase rates?<\/li><li>Hyper-Specific Targeting<\/li><li>Personalized Product Recommendations<\/li><li>White-Glove last-mile delivery experience<\/li><li>Post Purchase Thank You!<\/li><li>Predictive Delivery Alerts<\/li><li>Simplify Return Process<\/li><li>Seek feedback to iteratively improve<\/li><\/ul>\n\n\n\n<h4>What is the repeat purchase rate?<\/h4>\n\n\n\n<p>Let\u2019s start with the obvious. Simply put, this rate measures the total percentage of customers who come back to buy from your brand after making their initial purchase. It is a direct measure of your brand\u2019s loyalty. A crucial metric in understanding the health of your overall customer base.&nbsp;<\/p>\n\n\n\n<h4>How to calculate the repeat purchase rate?<\/h4>\n\n\n\n<p>A good repeat purchase rate affirms that you\u2019re on track and doing great in terms of providing value to your customer. The purchase rates however can vary wildly depending on the product category hence your target percentage will vary too.<\/p>\n\n\n\n<p>Average repeat purchase rates for eCommerce companies are considered to be between<a href=\"https:\/\/blog.smile.io\/how-to-calculate-purchase-frequency\/\"> 20% to 40%.<\/a><\/p>\n\n\n\n<figure class=\"wp-block-image\"><img src=\"https:\/\/lh6.googleusercontent.com\/A_q41nfrbTND4eQUZTTxQopHNg-Y-fhRA_8upxZ6snf1LohBgl-0Ci8R8oV8F885zcDAJKKkmZ2LJon0_Xb4rVI-Z_l2tqgL0y65EExNY11URFe7xBzm7MsCvywr3m7LmLzxnWXw\" alt=\"\"\/><\/figure>\n\n\n\n<p><a href=\"https:\/\/www.conversific.com\/blog\/ecommerce-metrics\/\">Source<\/a><\/p>\n\n\n\n<h4>Why is the repeat purchase rate considered a growth lever?<\/h4>\n\n\n\n<p>Have you ever considered repeat purchase rate as a growth metric? If not, it\u2019s high time you paid attention. Most brands spend <a href=\"https:\/\/smile.io\/resources\/research-papers\/profitability-repeat-customers\">&nbsp;80% of their total marketing budget<\/a> on acquiring first-time customers. However, 8% of an eCommerce brand\u2019s customers create 40% of its revenue. So a&nbsp; small segment of your customers ( I bet these are your regulars!) contribute to a large chunk of your revenue.&nbsp;<\/p>\n\n\n\n<p>Moreover, according to<a href=\"https:\/\/www.shopify.com\/enterprise\/ecommerce-loyalty-programs\"> Shopify<\/a>, when a customer returns for a second time, their likelihood of purchasing jumps to 45% and it jumps to 56% the fourth time. Simply retargeting your first-time shoppers can result in huge rewards.<\/p>\n\n\n\n<h4>How to increase repeat purchase rates?<\/h4>\n\n\n\n<p>It\u2019s all about building and nurturing the relationship with customers from their first purchase. Understandably as your shopper volume scales, it is almost impossible to extend the special attention to all your customers. This is where technology lends a helping hand.<\/p>\n\n\n\n<p>Here are a few techniques to keep your customers returning for more even as you scale:<\/p>\n\n\n\n<h4>Hyper-Specific Targeting<\/h4>\n\n\n\n<figure class=\"wp-block-image is-resized\"><img loading=\"lazy\" src=\"https:\/\/lh4.googleusercontent.com\/S8IFSyGl-sfSe_SLAYNZ6WADGc6YhiBugv2kmeW-AxWhtXZWvOOLwcY_9mOoaTwedRBAkwZk9lEsVwTYW1NfnEaM_BFTMpQFfchimcZI_2AG1j7eYisjIUf7Y-GR9D-w38-WCxHI\" alt=\"\" width=\"482\" height=\"218\"\/><\/figure>\n\n\n\n<p>Personalization combined with automation is the key to successfully delivering a delightful shopping experience in the digital spectrum.&nbsp; Personalization involves a deeper understanding of your customer\u2019s purchasing behavior. Amassing data on multiple factors such as item, order value, purchase frequency, etc from a customer\u2019s journey will help you hone your recommendations.&nbsp;<\/p>\n\n\n\n<p>Reaching your customer with the right content at the right time is crucial to keeping them hooked on to your brand.<\/p>\n\n\n\n<h4>Personalized Product Recommendations<\/h4>\n\n\n\n<figure class=\"wp-block-image is-resized\"><img loading=\"lazy\" src=\"https:\/\/lh4.googleusercontent.com\/Bi96aMnZswzTzEFNNpxjIva6-9OmUxx4H6akKyHhCQPxjcmPs0D3SvQr3xHOX8SE9uDyotLFkyPUEI-j6eQyPa2tbvpA7NkZduIavNUDvVpGTcIYDmh-4QYECtuPfhsNAdu4fJST\" alt=\"\" width=\"316\" height=\"309\"\/><\/figure>\n\n\n\n<p><a href=\"https:\/\/www.salesforce.com\/research\/customer-expectations\/\">Source<\/a><\/p>\n\n\n\n<p>How can your store differentiate from the competition? Simply by offering personalized recommendations, product offerings in the emails, and offers\/discounts. Your customers want you to remember who they are and what they want.&nbsp;<\/p>\n\n\n\n<p>Hence, your personalization policy should go beyond addressing customers by their names (all the big players already do this hence it just won\u2019t cut it anymore).<\/p>\n\n\n\n<p>The more you interact with your customer base the more data you will have about their preferences. You can leverage this further to tailor the messaging and promotions using marketing automation and other relevant tools.<\/p>\n\n\n\n<h5>Post Purchase Thank You!<\/h5>\n\n\n\n<figure class=\"wp-block-image\"><img src=\"https:\/\/lh6.googleusercontent.com\/M_N0Wl2MdJKUUGfw66UgAHTws1gkEoQiTGTjBiiw8UngCrvm4cqUooE3fVzqvDChkPUJ1JpIypHXtyd8yG6SHixhZqAPqt00U-MqLz6jXMxsrGXaowrVKtnsE60mm99URpj2qCBj\" alt=\"\"\/><\/figure>\n\n\n\n<p>Letting your shoppers know that you are truly grateful that they\u2019ve chosen to do business with you is aa huge deal in the grand scheme of repeat purchases.&nbsp;<\/p>\n\n\n\n<p>This simple act allows your customers\u2019 to remember your brand, and encourage the next purchase. Why? Because post-purchase thank yous via emails have better CTRs than your average promotional campaigns. Ofcourse a handwritten note sweeps them off their feet resulting in raving social media reviews.&nbsp;<a href=\"https:\/\/shippingchimp.com\/blog\/wp-admin\/post.php?post=152&amp;action=edit\" target=\"_blank\" rel=\"noreferrer noopener\">Read more about the post-purchase experience.<\/a><\/p>\n\n\n\n<h4>White-Glove last-mile delivery experience<\/h4>\n\n\n\n<figure class=\"wp-block-image is-resized\"><img loading=\"lazy\" src=\"https:\/\/lh4.googleusercontent.com\/iFaKoN3dKTnS_JhvbwZafvVjGJP_aKaCEtmqFTa-KhphU2Jx6Q-sw9n5WTSL5x1FeyRnOIWQPEvNV0OpMjoirCgYZFJRNRygT1QZSLoP0HxtOFjz9cFRoOZ8_D19ZYeN_U1g8GVW\" alt=\"\" width=\"428\" height=\"410\"\/><\/figure>\n\n\n\n<p>White glove services are the creme de la creme of last-mile logistics. It entails a lot more than just taking extra care during physical delivery. It includes leveraging the latest technology to offer additional touchpoints in the <a href=\"https:\/\/www.shippingchimp.com\/shipping-policy-generator\" target=\"_blank\" rel=\"noreferrer noopener\">shipping<\/a>, picking up, and also packaging process so that last mile deliveries are more seamless and efficient.&nbsp;<\/p>\n\n\n\n<p>Keeping the customers updated on their order delivery status is expected. Frustrated \u201c<a href=\"https:\/\/www.shippingchimp.com\/shipping-policy-generator\">Where is my order<\/a>\u201d calls are easily handled when you anticipate delivery issues and inform the customer of the same.<\/p>\n\n\n\n<h4>Predictive Delivery Alerts<\/h4>\n\n\n\n<p>Imagine a scenario where your customer is anxiously awaiting their order only to find it damaged. The resulting emotional trauma for your shopper can easily be avoided with forecasting abilities.&nbsp;<\/p>\n\n\n\n<p>1 in 5 shoppers cites poor delivery issues to be the main reason to switch to a competitor. When a shopper knows actively what&#8217;s happening on the ground it can be truly empowering. Real-time visibility will positively impact the delivery happiness score too.<\/p>\n\n\n\n<h4>Simplify Return Process<\/h4>\n\n\n\n<figure class=\"wp-block-image is-resized\"><img loading=\"lazy\" src=\"https:\/\/lh3.googleusercontent.com\/WGXdxIHG1yhMDdToUR3DEqR4V7PwK7YiooLyxiLaQOzs12FY4jH1-zwdcKvjlqfaEHjkp1BHztmBxru2DyFvFQDK-cnOM_DYoompQzYKHWxcnslIywvLV-FbJq1wbs1jrOc1MmeT\" alt=\"\" width=\"613\" height=\"330\"\/><\/figure>\n\n\n\n<p><a href=\"https:\/\/www.shopify.com\/enterprise\/ecommerce-returns\">Source<\/a><\/p>\n\n\n\n<p>Processing returns are considered a source of a cost center for eCommerce businesses. But trailblazers like Zappos demonstrated how easy return policy could champion more customers. Well crafted return policy can be a unique selling point for your eCommerce stores. For starters, keep the return process relatively simple but also ensure your customers are well acquainted with the return policy.<\/p>\n\n\n\n<p>Be prompt when it comes to product return requests. Transform return requests into exchanges or discounted purchases that are considered favorable by customers. At the end of the day, it&#8217;s all about a hassle-free experience.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.shippingchimp.com\/return-policy-template-generator\" target=\"_blank\" rel=\"noreferrer noopener\">Check out some of the snazzy return templates<\/a><\/p>\n\n\n\n<h4>Seek feedback to iteratively improve<\/h4>\n\n\n\n<figure class=\"wp-block-image is-resized\"><img loading=\"lazy\" src=\"https:\/\/lh5.googleusercontent.com\/JpvUh1SjWFz7RSbaRRu7Tln2muE0yqCnqQ_I5KsYcvKMoVgVaLwMkZ7uYMSQjU6PWVc7Od8RUIC58ntoRrFuL0xor7yIGT_1ghOduhvqxhcAPFVrY6WWbibwZdiKiq5gkoWFr0SG\" alt=\"\" width=\"526\" height=\"423\"\/><\/figure>\n\n\n\n<p>A satisfied and happy shopper is a loyal customer. Being responsive to their feedback should be given. When you want to build long term relationships you must respond promptly when they reach out. They will become more loyal with every additional purchase. This will also inevitably boost your ROI.<\/p>\n\n\n\n<p>Repeat Purchase rates, although disregarded flippantly, are a major source of revenue. Double down on your existing customer base to augment your bottom line. <\/p>\n\n\n\n<p>With tools like <a href=\"https:\/\/www.shippingchimp.com\/\">ShippingChimp<\/a>, access centralized order delivery metrics, manage delivery exception in real-time, automate personalized customer notifications, and effectively handle RMA processes.&nbsp;<\/p>\n\n\n\n<p><a href=\"https:\/\/www.shippingchimp.com\/\">ShippingChimp<\/a> helps your eCommerce store receive Amazonesque big data personalization on a budget. Want to offer enterprise-grade customer service? Start your <a href=\"https:\/\/shippingchimp.com\/register\">free 30-day trial<\/a> now.<\/p>\n","protected":false},"excerpt":{"rendered":"Satisfaction is a rating. Loyalty is a brand -Shepp HykenCustomer Service Expert A surefire way to build loyalty&hellip;\n","protected":false},"author":1,"featured_media":217,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[10,4,6],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v15.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Ultimate Guide to Increasing eCommerce Purchase Repeat Rates - ShippingChimp | Blog<\/title>\n<meta name=\"description\" content=\"It is easier to drive more purchases from repeat customers than acquiring new shopers for your product. Here&#039;s a guide for boosting repeat purchase rates and as a result revenue.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/shippingchimp.com\/blog\/purchase-repeat-rates\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Ultimate Guide to Increasing eCommerce Purchase Repeat Rates - ShippingChimp | Blog\" \/>\n<meta property=\"og:description\" content=\"It is easier to drive more purchases from repeat customers than acquiring new shopers for your product. 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