Increasing Repeat Purchase Rates: Generating New Growth from Current CustomersMar 7, 2017 - by Kristine Lowery
Amazon is no isolated case. The ups and downs of retail stocks often track the success of their loyalty programs, i.e. the programs that reward repeat purchases. Nordstrom’s stock price, for example, has been on an upward swing since the company added 1.7 million new reward program members, along with their emails, and forecast increased sales. As the fortunes of these retail giants make clear, the best new sale comes from an old customer.
Strategies for Getting More From the Customers You Have
At Sailthru, we’ve worked with hundreds of retailers to focus on increasing repeat purchase rates of retained customers. In our experience 95% of a company’s future sales come from just 5% of its existing customers, making this work well worth the effort.
Our experience has also shown us what strategies work to raise repeat purchase rates. These strategies, which are collected in our best practice guide Increasing Repeat Purchase Rates, include the following:
- Personalization based on behavior and interest
- Post-purchase messaging
- Reward and VIP programs
- Winback messages
- Cart abandonment strategies
For each strategy, we’ve provided details on proactive, high-impact initiatives that have been shown to increase repeat purchase rates, along with a micro case study to illustrates their successful implementations by online retailers.