Your Repeat Purchase Rate should hold steady or improve as customers place repeat orders. This shows that they are engaging with your store and products.
A Repeat Purchase Rate drop-off is where there’s a significant drop in your rate based on a clear behavior, usually from one order to the next (e.g. first to second orders, second to third orders, etc).
A significant drop-off in the repeat purchase rate can be a sign that your customers aren’t re-ordering and are defecting to your competitors. It could also signal product dissatisfaction.
How to improve your drop-offs
To improve your repeat purchase rate drop offs, you need to increase trust with your customers earlier in the lifecycle. They need to look at you as a trusted store or vendor that they enjoy shopping with.
This can take a variety for forms but for Shopify stores, these are the more effective ones.
- Regular email marketing that provides them value (e.g tips, entertainment)
- Regular email marketing about sales and discounts
- Loyalty and rewards programs
- Making sure you reward loyal, repeat customers as well as or better than new customers
- Early communication to solicit feedback and reviews about your products to catch product or service issues.
You can also create win-back campaigns to try to get past and defected customers to come back to your store.
It’s common to have drop-offs at specific points, the step from Order #1 to Order #2 is a very common one as some customers will are only interested in buying once.
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.