Your products have a few purposes but two important ones are:
- contribute to your Shopify store's profit
- satisfy the customer so they come back and buy again later
Satisfying the customer vs making the customer happy is a whole multiple-article discussion that we'll leave for now.
Getting a customer to come back and make a repeat purchase is an easy to understand goal that every store could agree with. If customers come back, you'll get more revenue but more importantly, you'll get even more profit as it's cheaper for repeat customers to order.
That means the second goal reinforces the first goal in the long-term.
More repeat orders with more profit.
Measuring how effective a product is at getting customers to come back is the job of the Repeat Purchase Rate. This metric compares your one-time to your repeat customers and gives you a percentage of customers who are repeat customers.
Repeat Customer Insights goes one step further and analyzes how the first products a customer orders influences their later behavior. When their first experience is great, the Repeat Purchase Rate will be high, and the product will accomplish its goals. A bad product experience and that customer might defect and go elsewhere next time.
Each product will have its own Repeat Purchase Rate and some will vary wildly. Even variants can vary and surprise you once you look at the data.
Use cohorts to find out who the best customers are in your Shopify store
Repeat Customer Insights will automatically group your customers into cohorts based on when they first purchased. This will let you see how the date customers bought would impact their behavior.