How to Boost Your Store Revenue with Repeat Purchases

Retention is the new acquisition. You might have heard that in numerous marketing conferences. That's because it is true. Repeat purchases can be the ultimate game-changer for a brand.

This article will explore the art and science of retaining customers and boosting customer lifetime value (CLV) through effective strategies centered on repeat purchases.

What is a repeat purchase, and why is it important?

Repeat purchase refers to existing customers returning to purchase from a particular brand or company repeatedly.

Repeat purchases form the backbone of every successful business. Not only do they reduce the cost of customer acquisition, but they also contribute to a stable revenue stream. According to Gitnux, acquiring a new customer is five times more expensive than retaining an existing one. Furthermore, a 2% decrease in retention equals a 10% decrease in marketing costs. These statistics underscore the crucial role of repeat purchases for a brand, making it a key topic to explore in this blog post.

However, retaining customers is challenging. According to a study by Yotpo, one out of three shoppers will stop doing business with a brand they love after a single bad experience.

Reasons for loss of repeat purchases

While repeat purchases are desirable, clearly it takes work to retain customers. Many factors can negatively impact a buyer's return to purchase them. However, 3 major reasons stand out and fixing that can help you build a better retention funnel. Here's a closer look at them:

Reason #1 - Bad customer support

According to a survey conducted by Shep Hyken and then shared on Forbes shared on Forbes, 96% of customers switch brands due to poor customer service. Inconvenience, slow responses, poor resolution, and a lack of proactive solutions can lead to customer dissatisfaction.

Fix #1 - Do useful customer support

• Automated responses for common queries and dedicated, trained staff for complex issues should be the norm.

• Use a ticketing system to track and manage inquiries, ensuring timely responses.

• To meet customer preferences and increase customer satisfaction.

How brands are doing it

For instance, Flipkart, the renowned ecommerce platform, has set up an automated response system for common queries, connecting customers to support executives when necessary.

Focus on customer experience. Loyal customers come back for great products and feel valued.

- Hannah Lipschutz, Email Marketing Strategist

Reason #2 - Misrepresentation of product

Another reason for repeat purchases being lost is product misrepresentation. If the product description, images, and specs don't match the delivered product, buyers might feel betrayed and stay away from the brand.

According to a YouGov survey, 31% of consumers switch brands when companies exaggerate or mislead about their products.

Fix #2 - Be genuine and transparent

• Provide accurate product details without exaggerated or misleading claims about benefits or performance.

• Conduct QA and product testing to ensure that products meet the standards advertised on your website.

• Use high-resolution images that show accurate features, appearance, and dimensions. Don't use enhanced images that may be misleading.

How Brands Are Doing It

Nappa Dori, a Shopify leather bag store, is an excellent example of how high-quality images with accurate information about color variations can be used effectively.

Reason #3 - Higher price compared to competitors

Customers may switch to brands offering better deals if they can find a better or equal product at a lower price elsewhere.

If customers find a similar product at a lower price elsewhere, they will likely switch brands. In fact, according to Subscription flow, 78% of buyers consider fair pricing a crucial factor when choosing a company to buy from.

Fix #3 - Make them feel valued by providing offers

• Monitor your competitor's pricing and deals and use it to inform your pricing strategy.

• Organize sales with discounts and provide coupons, deals, or cashback to redeem on the next purchase.

• Create a loyalty/VIP program to offer discounts or rewards after a milestone number of purchases.

How brands are doing it

For example, the brand PLIX has a wallet that collects cashback and encourages customers to redeem it for their next purchase.

How to ensure good retention and high repeat purchases?

While these strategies are crucial for maintaining a healthy customer retention rate, businesses still need to guarantee it. To ensure repeat purchases, businesses must continuously inform customers about discounts, deals, and social proof. This keeps customers engaged and nudges them towards their next purchase.

"The three things that seem to work consistently are the ability to lookup previous orders easily as far back as possible. Highlight which ones were previously purchased as users tend to gravitate to the same products, and encourage users to create an account to speed up further transactions."

- Amrdeep Athwal

The key to encouraging repeat purchases is to stay at the forefront of your customers' minds.

One of the best ways to do this is through email marketing. Create a post-purchase email flow that allows you to re-engage with your customers, reminding them of your brand and encouraging them to make another purchase.

What is a post-purchase journey?

A post-purchase journey is triggered as soon as the user makes a purchase. It is not a single sequence of automation but a series of email flows designed to build trust and incentivize buyers to return to your store for the next purchase.

There are 3 major email flows that you should include as part of this post-purchase funnel.

1. Product refill email flows:

A product refill email flow is a series of emails encouraging customers to repurchase a product they have already bought. This flow is especially useful for businesses selling consumable products that customers may need replenishing after a certain period.

Emails in a product refill email flow:

• Buy again email: The first email in this sequence is sent after a calculated usage period, reminding the customer to repurchase the product.

• Reminder email: If the customer hasn't responded, a reminder email is sent, reinforcing the need for a refill.

• Offer email: An enticing offer can smoothen the deal if the customer still needs to repurchase.

2. Cross-sell (or upsell) email flow:

This cross-sell or upsell flow nudges buyers to buy items that complement or are accessories to a previous purchase (cross-sell) or buy a bigger or better version (upsell). This strategy can significantly increase the average transaction value, boosting overall revenue.

Emails in a cross-sell email flow:

• Offer email: Showcases relevant products that enhance or complement the customer's initial purchase.

• Discount email: Offers exclusive discounts or incentives encouraging customers to purchase more.

• Social proof email: Provides testimonials or reviews from other customers who have benefited from the additional products.

• Nudge email: A final email encouraging the customer to purchase the cross-sell.

3. Idle win-back email flow:

The idle win-back email flow is designed to re-engage customers who last interacted with your brand a while ago. This sequence can help revive interest and bring inactive customers to your website or app.

Emails in an idle win-back email flow:

• Activity email: This initial email reminds the customers about your brand and highlights recent arrivals or offers.

• Special offer email: A unique offer or discount can rekindle the customer's interest in your brand.

• Follow-up email: Follow-up emails can ensure your message is noticed.

• FOMO email: This is a last attempt to win back the customer by leveraging the 'Fear of Missing Out' (FOMO) tactic.

Other than these, there are certain transactional and feedback emails as well that you can choose to send or might be already sending as part of the post-purchase process-

• Order confirmation: Customers receive an order confirmation email once they place an order. This goes out as soon as they checkout and the order is confirmed.

• Post-purchase/review: Customers can be encouraged to provide reviews after receiving the product. This can be coupled with product refill reminders or cross-sell and upsell opportunities.

Overall feedback:** Customers' feedback about their purchase experience is extremely valuable. It can help businesses understand their strengths and areas for improvement.

How to set up a post-purchase email journey?

To set up these email flows, you can use an ESP (Email Service Provider) like Mailmodo, Klaviyo, Omnisend, etc. These tools allow you to automate your emails and make sending out emails much smoother and more efficient.

As a Mailmodo customer, you can easily build your email flows with pre-built automation. This feature allows you to customize your emails with your brand assets, making your emails stand out and more likely to be read by your customers.

Mailmodo also offers interactive emails for higher engagement. These emails include interactive elements like carts, which can drive sales by making shopping easier and more engaging for your customers.

You can sign up for a free Mailmodo account here and build your post-purchase funnels easily.

Key takeaways

Creating a successful business involves attracting new customers and retaining existing ones. Ensuring customer satisfaction and loyalty is crucial for this. Here are the key takeaways so far-

• While attracting new customers is important, nurturing existing relationships can lead to more sustainable business growth.

• Understanding your customers' needs, providing excellent service, and offering competitive prices are key to fostering these relationships.

• Effective communication strategies like email flows can significantly boost repeat purchases.

• Remember, a satisfied repeat customer contributes to your revenue and can also become a brand advocate, bringing in more customers to your business.

To sum up, strategize smartly, understand your customers, and unlock your business's potential for repeat purchases.