How you acquire a customer matters a lot when it comes to their repeat buying behavior. Customer coming from a word-of-mouth directly to your online store will act differently than customers coming from a Facebook ad, which will act differently from ones who visited your physical store. You can measure the likelihood of a repeat …
Tag: repeat purchase rate
Use the repeat customer ratio to evaluate how well your Shopify store is performing
When you start working on your repeat customers, first figure out your ratio of new-to-repeat customers. As the example above says, above a 30% ratio is healthy. That means out of ten customers, three will be repeat customers. If you’re under 30%, much of your beginning work will be on improving that. There are a …
The odds are against you
If your store is like most Shopify stores, only about one out of every four orders today will end up buying again. Which one though? That’s why it’s important to measure and adapt to your customer behavior. If you don’t, you might miss out on that returning customer. If you think you’re better than most …
Using Average Orders per Customer to acquire profitable customers in your Shopify store
When figuring out how to profitably acquire customers, you need to know how long a customer will stick around. It’s a big difference if your customers only order one or two times VS a dozen times. Customer LTV can be used with this but it looks way in the past and would be like trying …
Monitoring how your Shopify store performs each year
Throughout the year you’ll want to monitor specific store metrics based on what you’re actively working on. For example, if you’re trying to reduce returns then metrics around your return rate and return rate by sales channel would make sense. There are other, more general metrics you’ll want to keep an eye on all the …
What repeat customer metrics to compare at year-end
Going into the end of the year you’ll want to compare a few metrics to last year and the year before to see how things have changed. Total sales Average Over Value – good if it stays consistent or has gone up. Great if that happens while total sales have gone up. Repeat Purchase Rate …
Was that an unusually good period or are things getting better?
This week I released some additional Insights for Repeat Customer Insights. Insights are my fancy name for the automatic analysis and advice that the app gives you based on what its algorithms find in your data. These new Insights will compare your Shopify store’s performance in specific dates to how it performed overall. For example, …
What’s a good Repeat Purchase Rate for Shopify stores?
Some Shopify store owners have asked, what’s a good Repeat Purchase Rate? 25% is what I consider the low-bar. Some large-scale studies have found 27% to be the average Repeat Purchase Rates but that’s only an average. I’ve seen stores with 60%+ and stores with single digits. The higher the rate, the better the store …
A simple rule of thumb for repeat customers
A lot of customer retention and analysis can get complex and confusing fast. But there’s one rule of thumb you can use to tell if you’re doing a good job keeping customers coming back: At least 1 of every 4 customers should be a repeat customer. If that’s not happening, you’re going to want to …
Get 1 out of 3 customers to buy again
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. …