Find which products to promote or ignore by using your Repeat Purchase Rate as a hurdle rate

One way to evaluate which products to promote is to look for the ones that create more repeat buyers.

To do this, you’ll want to calculate the Repeat Purchase Rate for each product, preferably based on the first order. Repeat Customer Insights does this for you automatically in the First Product Analysis.

Next you want to calculate your overall Repeat Purchase Rate. In my app that’s listed in the Store Analysis.

Now you’ll compare your overall Repeat Purchase Rate against each product.

If the product has a higher rate, then it’s better than average at creating repeat customers.

If the product has a lower rate, then it’s worse.

You’re using the Repeat Purchase Rate here as a hurdle rate. The product rate has to “jump over the hurdle” to be considered positive.

Perform this analysis on all of your products (and variants) and you’ll know which products are above average.

You can then decide:

  1. promote the high performers more to create more repeat customers, or (strength-focus)
  2. work on improving the low performers, or (weakness-focus)
  3. cull the low performers.

I’d recommend #1 as you have much more potential upsides, with an occasional dip into #3 to clear out your product catalog.

Eric Davis

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