In the competitive world of e-commerce, retaining customers and boosting repeat purchases are key to business growth. A crucial metric in this journey is the repurchase rate. Let’s explore how to understand and maximize it for your Shopify store.
Decoding the Repurchase Rate on Shopify
The repurchase rate is calculated by dividing the number of customers who have made more than one purchase by the total number of customers in the same period. It’s a measure of customer loyalty, indicating how many return for additional purchases.
What’s an optimal Repurchase Rate?
Typically, a 20-40% repurchase rate is considered good, but the aim should be consistent growth in your repeat customer base.
Boosting the Returning Customer Rate
Enhancing your repeat customer rate on Shopify involves:
- Offering personalized services for customer convenience.
- Ensuring a smooth and easy checkout process.
- Creating localized shopping experiences for different regions.
- Establishing trust and care in customer relations.
Leveraging Segmentation for Higher Repurchase Rates
Segmentation involves categorizing customers based on common traits. By the Numbers, a Shopify app, lets you access and create segments for targeted campaigns and in-depth customer analysis. With the Shopify app By the Numbers, you can access pre-built segments, or create your own custom segments, to gain valuable insights into your customer behavior and preferences.
For instance, using the “Top 25th Percentile Customers by Total Sales” segment helps identify high-value customers. Pair this with the Products Sold report for insights into their preferred products. This allows for tailored recommendations and offers.
Comparing behaviors of discount users and non-users is another strategy. Segments like “Full Price Customers” and “Non-full Price Customers,” combined with the Total Sales report, provide a clear view of each group’s performance over time.
What Shopify App should I use?
If you’re looking for a simple and effective way to track and increase your repurchase rate on Shopify, we highly recommend By the Numbers. By the Numbers is a Shopify app that helps you track and optimize your sales and marketing performance by providing insights into your customer behavior, purchase history, and other key data points. With By the Numbers, you can easily segment your customers, create targeted campaigns, and track your results to see what’s working and what’s not.
Ready to enhance your Shopify repurchase rate? Install By the Numbers today. and start optimizing your sales strategy today.
