Every store owner who wants to make it in ecommerce is after the holy grail of creating an army of brand ambassadors in love with their products. There’s no better marketing than word-of-mouth marketing.
In this article, we’ll share simple techniques any Shopify store owner can apply to increase the revenue from existing buyers.
But, first things first, why exactly is it important for an ecommerce business to invest in customer retention?
Repeat purchasers are cheaper to acquire
According to an Adobe study, users who have already purchased from a website are up to 9x more likely to convert on your website.
Simply put, it means you’ll have to spend less to generate conversions.
Repeat purchasers are more profitable
A study by Bain & Company reported that loyal customers tend to spend up to eighty percent more than first-time buyers. So not only are they cheaper to convince, but they will also generate more revenue for your store.
Chances are that people who already purchased from you know how your store operates and what kind of service they can expect. As a result, they’re less likely to contact you.
Four Techniques to Boost Repeat Purchases
Now that we know that generating repeat purchases is key, it’s time to see how we can turn your buyers into repeat purchasers.
1. Delight Your Customers (And Measure Their Satisfaction)
That may sound obvious, but to develop customer loyalty, you need to make sure that your clients enjoy their first buying experience.
Here are a few techniques which can help you make your customers fall in love with your brand:
Offer a hassle-free shopping experience (delivery options, choice of payment methods – anything you can do to make a purchase easier)
Provide super-fast customer support (According to an Arise survey, 80% of customers expect a reply within 24 hours)
Send handwritten thank you notes (here’s a quick example from Shopify-store HEX)
Include a freebie with their order
To make sure your buyers are happy with their shopping experience, you need objective ways to evaluate their satisfaction and collect feedback. Unhappy customers won’t necessarily contact you directly. But they’ll share their experience with their friends and relatives; data shows that 54% of customers who had a bad experience with a purchase share it with more than five people.
You need to proactively reach out to your clients and collect their feedback. Apps such as Customer.guru can help you survey clients in an automatic and scalable way. No more guesswork – you know what’s working and what’s not.
2. Invite Your Users to Create Accounts
It can be frustrating (to say the least) for someone who already placed an order from your website to have to input their personal details again when they order a second time.
At the same time, inviting your customers to create an account during the first purchase can decrease conversions…
The solution? Inviting them to create an account once their purchase is completed. Shopify makes this easy to do.
3. Use Email Marketing
It’s been proven that email marketing is the best way to drive visitors and buyers to your website. But to set up your email strategy, you need a plan.
Use email pop-ups, email bars or email forms to get your visitors to subscribe to your newsletter.
Activate the promotional email consent checkbox during the checkout process to get your customers on your list.
Prepare a welcome email and send regular newsletters to keep your subscribers engaged with your brand.
Boost your emails with product recommendations. Most email tools offer the option (here’s how it works with MailChimp, for example). It’s usually easy to activate and will help you get more from your emails.
4. Retarget your buyers
Email is one of your retargeting options. But you can also rely on Facebook Ads to re-engage your buyers. With their custom audiences option, it’s easy to upload lists of people who made purchases from your website and retarget them.
Here are a few tips to make sure your ad will be clicked and will convert:
Create a specific headline that will grab their attention. Something like, “We miss you,” or “We’ve got new products in our store!”
Don’t hesitate to add an extra incentive in the form of an exclusive discount.
A/B test your ads to make sure you’re making the most of your ad spending.
How to Monitor the Results of Your Loyalty-Building Efforts
Now that we’ve reviewed loyalty-building techniques, it’s important to measure how successful your efforts are.
The Repurchase Rate Formula
To measure loyalty, we can rely on a metric called repurchase rate. It measures the number of customers who have purchased more than once from your store during a specific time frame. The formula is:
Customers Who Have Purchased More Than Once divided by Total numbers of customers
Usually it’s calculated over a 12-month period.
How to calculate repurchase rate in Shopify
Log in to your Shopify admin. Click “Customers” in the left menu.
Select “Repeat customers” and filter by creation date to keep only the last 12 months.
Note the number of repeat customers you had. Click “All” and filter customers to keep only the customers created during the last year.
Divide this number by the first one you got. And voila!
You can also go further and calculate the average number of orders per customer and the average order value.
Convincing buyers to come back to your store and turning them into repeat purchasers will make a huge difference for your store in the long run. As we’ve seen, it’s not so hard. So why not starting working on customer loyalty today?
Don’t hesitate to share your own loyalty tips in the comments!
About the Author:
Greg d’Aboville works for WisePops, a SaaS helping marketers more visitors with targeted onsite messages. You can find their Shopify popup builder on the app store.