In today's competitive e-commerce landscape, retaining customers and encouraging repeat purchases is essential for growing your business. One of the key metrics for measuring the success of customer retention is the repurchase rate. But what exactly is the repurchase rate, and how can you maximize it for your Shopify store?
The repeat purchase rate (or repurchase rate) is calculated by dividing the number of customers who have made more than one purchase by the total number of customers over the same time period. In other words, it measures how many of your customers are coming back to make another purchase.
A good repurchase rate is generally considered to be between 20-40%. However, this is just a rule of thumb, and the most important thing is that you are experiencing growth in your repeat customer rate.
There are several ways to increase your repeat customer rate on Shopify. Some of the most effective methods include:
Segmentation is the process of dividing customers into groups based on shared traits and characteristics, allowing you to create targeted campaigns and analyze your customer data more effectively. 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 example, you can use the pre-built segment "Top 25th Percentile Customers by Total sales" to identify your high value customers and create targeted campaigns for them. This segment, combined with the Products Sold report, can give you information on the products your most important customers are buying, allowing you to create personalized recommendations and offers that they are more likely to engage with.
Another way to use segments is to compare the behavior of customers who have used discount codes with those who have never used them. By using the pre-built segments "Full Price Customers" and "Non-full Price Customers" and combining them with the Total Sales report, you can see how these groups of customers perform from one month to the next, and make data-driven decisions on how to incentivize repeat purchases.
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 get started? Install By the Numbers today.
