In Repeat Customer Insights I code in some industry statistics to make it easier to compare your Shopify store to ecommerce as a whole.
The percentage of customers buying again (Repeat Purchase Rate) is about 27% which means an average store will get 1 out of 4 customers to buy again.
Some stores are better. Some are worse.
As you watch new orders come in, your store should strive to do better than that. Maybe getting 1 out of every 3 customers or even every other customer to buy again.
It takes time.
It takes work.
But it can be amazing to your bottom line.
First off, because there’s almost no cost to acquiring a repeat purchase so there’s more profit to those orders.
Second off, because every time a customer repurchases they are more likely to repurchase again which means more revenue and profit.
That 1 out of 4 rate continues on and on…out of 16 customers, 4 will buy a second time, and 1 will buy a third time. I’ve seen stores where customers buy dozens of times through their lifecycle.
There’s some complex formulas behind the revenue too. If you can get every other customer to buy again you’ll double your revenue. 1 out of 3 is almost 50% more revenue.
It’s like that compound interest magic.
Day-to-day find those little ways to build each relationship. When you have time, build assets that work on a larger scales (e.g. loyalty programs, new customer welcome campaigns).
If you need help checking your Repeat Purchase Rate, it’s one of the metrics included in my app that is calculated automatically for you.
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.