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[Guide] Improve your repeat purchase rate ft. Southwest, e.l.f., + more.

Improving your repeat purchase rate can multiply profits. This guide breaks down numerous strategies you can implement to bring customers back to your store, including replenishment campaigns, triggered messages, and customer service.

If you'd like to skip straight to the examples, click here.

Why you should increase your repeat purchase rate

Too many focus on acquisition as the primary way to drive eCommerce revenues. The truth is, increasing your repeat purchase rate will have an outsized impact on profits.

  • A recent study by Adobe found, on average, 8% of customers accounted for 41% of profits.
  • Returning customers have 3x the AOV of first time shoppers - source
  • On average, "just 10% of customers will ever revisit a brand after their initial visit", yet 60-70% of repeat customers will ultimately make another purchase - source

Increase your repeat purchase rate - strategies and examples

1. Personalize replenishment campaigns by product ft. care/of

Products have different reorder cycles.

Some products are meant to be used within a week. Others within a month, or longer.  Incorporating behavioral segmentation into our marketing mix will allow you to optimize send times based on what item was purchased.

Above, care/of structures all of their products to be used in 30 day cycles. This makes it incredibly easy for them to structure personalized health plans for each of their customers, and remove as much friction as possible in the reorder process.

2. Convert customers to subscription purchases ft. Tula

Improving repeat purchase rate requires removing friction. One of the most effective ways to do this is through subscriptions, which removes the ongoing purchase decision and replaces it with a single one.

Below, Tulia attempts to convert their customers to an ongoing subscription. They compliment the offer with a number of benefits including:

  • Savings - "Save up to 15% on skincare essentials"
  • Free Shipping - "Score free shipping every time"
  • Bundled Gifts - "Enjoy a free gift on us with each order"

3. Capitalize on immediate upsell and cross-sale opportunities ft. Southwest Airlines

The best time to present cross-sales is right after a purchase.

Customers are most excited as soon as they complete a purchase, and often want to make the most out of it. In fact, that is why the recency metric in RFM analysis is so impactful.

Below, Southwest airlines does an excellent job presenting a personalized cross-sale right after their customer books a flight. 

4. Transform bad experiences into a reason to come back ft. e.l.f.

Proactively addressing poor experiences is key to retaining customers.

e.l.f. has created a best in class customer retention strategy. One facet of this is transforming bad experiencing into reasons to come back.

Below is a triggered email sent whenever there is a delay in shipping. 

Notice how direct they are in addressing the issue, assuring the new customer that this is not standard and making it up with a $10 offer on their next purchase. 

Next steps...

This guide looked at how to increase repeat purchase rate through a variety of strategies. 

The next step is implementation. To do that, you want to connect with a customer data platform that is capable of fueling personalized repeat purchase campaigns.

If you'd like to see how Barilliance helps hundreds drive repeat purchases, request a demo below.

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