Why do so many of my customers not make a second purchase?
If you’re having problems encouraging people into that all-important second purchase, don’t worry, you’re not alone. Studies have shown that on average around 14 per cent of shoppers are repeat customers. However, the NRF has shown that a benchmark figure from the best performing sites is around 40 per cent.
Some of you may already be there, but for those of you that aren’t just take a second to calculate how much more value your business would drive from this. Simply multiply the average lifetime value of a repeat customer by the increase in the quantity of customers from hitting a 40 per cent repeat customer rate. For example if you were at a 25 per cent repeat customer rate for 20,000 customers, with £130 being the average LTV of a repeat customer your potential increase in lifetime revenue would be £390,000. There would also be incremental value add for every new customer added as well.
I think you’ll agree, it’s definitely worth a minute of your time.
Below I’ve outlined a number of tactics you can add into your lifecycle marketing strategy to improve the conversion from first time customer to repeat customer. Here’s an image showing you exactly what phase of the lifecycle we’re focusing on.