Repeat purchase behaviour

Repeat purchase behaviour | How to Make Repeat purchase behaviour More Valuable

Repeat purchase behaviour. Although ecommerce margins are razor thin, there is a simple approach to maximise the value you receive from clients and grow your business over time.

Increasing marketing ROI, ensuring cash flow throughout the year, and improving your brand's reputation can all be achieved by focusing on Repeat purchase behaviour recurring consumers.

Repeat purchase behaviour

We'll look at the distinction between client retention and recruiting in this blog, as well as how to obtain more repeat customers and maximise their worth.

Customers who return versus new recruits

The marketing maths is straightforward:

Keeping an existing customer is less expensive than acquiring a new one. According to a study conducted by Bain & Company, increasing your client retention rate by just 5% can increase your profitability by at least 25%. Repeat customers are more likely to spend more over time, which benefits your long-term profitability.

• But why is that?

• What is it about returning consumers that makes them so valuable?

A number of elements are at play:

Repeat customers are easy to sell to. You already know they're your target demographic. You know how to get in touch with them, and you can even utilise their previous purchases to help you craft your message.

Repeat purchase behaviour

Customers who return buy more, especially during busy periods. While major shopping holidays, such as Christmas, are a terrific opportunity to reach out to new customers, your existing customers play an important role as well.

Customers that buy from you again and again become brand advocates. They continue to favour your brand over others. That means they're in a good position to write reviews, post on social media, and tell their friends about your products or services.

All of these elements bring value to your company. Let's talk about how to maximise that value by implementing client retention methods and encourage them to spread the word about your company.

How to increase the number of return customers

Consider your personal experiences as a shopper.

What keeps you coming back to a particular brand?

It's not only about producing high-quality goods and services, but that is important. It's also about providing an exceptional customer experience and providing additional reasons for them to return.

Things such as...

• A delivery service that is both transparent and efficient.

• Creating a following for your brand.

• Content that is both instructive and amusing.

• Customers are rewarded with limited discounts or free goods.

• Keeping customers interested all year long.

• Reflecting on your consumers and responding to them.

• Let's take a closer look at those points.

Service of delivery

Customers who shop online do not get the same immediate gratification as those who shop in a store. They hand over their money and... well, they used to just hope for the best in the past.

Repeat purchase behaviour

You can and should improve your customer service. That involves getting regular information on the status of an order, receiving delivery alerts, and having an easy-to-reach customer service helpline. You should leverage the check-out process to develop trust as well as make it easy for people to shop with you.

Creating a community around your brand

A chance to belong is one of the most potent motivators you can give individuals. Being a part of something unique. Being a member of the inner circle.

A brand community is based on this concept. Instead of shopping alone, you can create connections between your customers. Facebook groups, online events, and brand blogs or magazines are all examples of ways to foster a sense of collaboration and belonging.

Providing fantastic material

It's all about the content. It's your website's product description. It's the weekly email newsletter you send out. It's the YouTube tutorial video you share on social media. It's the discussion you begin in the comments section.

You may utilise content to keep clients engaged in your brand, educate them about it, and strengthen your brand community. Because you won't see the effects right away, content might be difficult to sell in a business. A great content strategy, on the other hand, could be critical in generating repeat customers over time.

Customers should be rewarded.

It's a delicate art to reward your customers. They won't bother paying for any additional things if you charge them too much. If you give them too little, they may feel unappreciated.

Repeat purchase behaviour

The key is to come up with unique ways to thank your customers. Discounts and coupons are fantastic, but why not give customers access to unique material, early access to new products, or even a fast branded mini-game? In and of themselves, content and community can be rewarding.

• Keeping your customers interested
• If someone buys one of your products on the spur of the moment...
• or simply choose something as a gift...
• or buys your stuff during a big seasonal sale...

Is it still possible for them to become repeat customers?

The answer is yes, but you'll have to put in some effort.

Taking into account your target audience. This last point is going to be huge in 2021 - you heard it first here! The term "brand" refers to a particular product or service.

Allowing clients to take the lead is a skill that can be learned. This includes stuff like:

• Customers should be consulted about new items.

• sharing content created by users

• putting your brand's principles on display

To summarise, if you provide a positive customer experience and create a vibrant community for them, your customer retention rates should be healthy.

Your next task is to maximise the worth of all those loyal consumers.

How can you increase the value of your repeat customers?

Repeat consumers are vital not only because they spend more, as we've discussed. They're a great opportunity for your company because they're likely to bring in more clients. If they tell someone else about your stuff, that's free advertisement!

Repeat consumers should be encouraged to talk about your brand as often as feasible. Let's have a look at a few options.

Marketing by word-of-mouth

Given how much effort and creativity we put into marketing planning, advertising spots, and content production, it may seem weird. Customer recommendations, on the other hand, are the most powerful and ageless tool in every marketer's toolbox.

People trust people more than they trust brands, on average. If a friend or family member tells you about a terrific company they recently discovered, that recommendation will be more credible than if you see an ad for the same company.

Repeat purchase behaviour

The tough aspect is figuring out how to get people to talk about your brand.

Offering rewards in this area is something I do not endorse. Word-of-mouth marketing should be unscripted, natural, and spontaneous. Rather than openly promoting it, you should focus on providing customers lots to speak about!

Make fantastic items. When it comes to customer service, go the additional mile. Share engaging material that gets people talking. To put it another way, build an experience that your clients can't stop talking about.

There is social proof.

Although social proof works in a similar way to word-of-mouth marketing, it does it in a slightly different way.

Rather than telling others about your brand, your customers demonstrate their enthusiasm for it by sharing images and videos of themselves using your products or services on social media.

This is one area where you can and should strongly encourage customers to comment. However, there are a variety of strategies to reward social proof. You could, for example:

• Reshare product-related posts on social media.

• On social media, leave comments and likes on posts about your items.

• Create a special gallery or Stories highlight to save your customers' product-related posts.

• Run a monthly prize draw for anyone who mentions your brand on social media.

• Send some items to people who post about your business on a regular basis, or who post about your brand and garner a lot of attention.

• All of these reactions have two outcomes. To begin with, they increase the reach of the original posts, making the social proof even more powerful. Second, they reward customers who provide social proof and encourage them to do so in the future.

Online testimonials

Online reviews have the power to make or break a company. And there are an increasing number of places to share them: on your website, on social media, and on a slew of other sites like Yelp and Tripadvisor.

Positive evaluations from satisfied customers can add a lot of value to your company. Even if they don't write a 2,000-word essay on how much they adore your items, merely increasing the amount of online reviews can help boost your brand's legitimacy and awareness.

You can encourage people to post reviews, but you can't make them all favourable. As with word-of-mouth marketing, creating an outstanding client experience is the best method.

You can also reward consumers who provide reviews, regardless of their tone. Offer discounts, reward points, exclusive material, or early access to new product launches to be more creative with rewards.

Repeat purchase behaviour

Conclusion

Hopefully, this article has provided you a few suggestions for keeping clients and encouraging them to spread the word about your business. You can build a community of pleased consumers who love to talk about your products and services by focusing on high-quality content and excellent customer service. And your company will reap the rewards.

Author information: Corinna Keefe is a technology, marketing, and social media engagement freelance writer. She works with a variety of companies, like Easypromos, all across the world (mentioned in this article).

FAQ

1. What are the four types of purchasing behaviour?

The 4 Types of Purchasing Behaviour Extend Decision-Making.

• Decision-Making Capacity is Limited.

• Behavioural Purchasing Habits

• Purchasing Behaviour that Seeks Variety.

2. What methods do you use to encourage repeat purchases?

7 Effective Strategies for Increasing Repeat Purchases

• Continue to engage with personalised post-purchase messaging.

• Action is triggered in real time.

• Improve transactional emails.

• Increase wallet share based on external interests...

• Encourage a second purchase.

• Take a look at loyalty programmes....

• Use retargeting to boost conversions.

 3. What exactly are purchasing habits?

What exactly are purchasing habits? The purchasing habits and preferences of various customers within your target audience are referred to as purchasing behaviours. Understanding your customers' behaviours allows you to better target your marketing to their specific spending requirements.

4. What is a reasonable purchase frequency?

Looking at Purchase Frequency for less than a quarter won't make sense for most stores. If you use the same period for the number of unique customers and the number of orders, your Purchase Frequency will always be one or greater. The longer the time frame, the higher the Purchase Frequency.

Repeat purchase behaviour

5. What is the likelihood of a repeat purchase?

The subjective likelihood that a consumer will continue to purchase products/services from online sellers in the future is referred to as repeat purchase intention (Chiu et al., 2012).

6. How would you assist in increasing repeat business?

7 simple strategies for cultivating repeat business

• Begin a loyalty programme.

• Provide personalised customer service.

• Distribute coupons for future use.

• Obtain the contact information of your customers.

• Give away some freebies...

• Provide customers with the opportunity to provide feedback.

• Maintain an active presence on social media.

7. How many different types of purchasing behaviour are there?

Consumer purchasing behaviour can be classified into four types: Purchasing behaviour is complicated. Dissonance-reducing purchasing behaviour Consistent purchasing behaviour.

8. Give an example of consumer behaviour.

Extensive decision-making is required.

Consumers spend time researching and comparing various products. They look at product reviews and also consult with friends or sales professionals. It takes longer to complete the process. For example, when purchasing a television, people spend a significant amount of time visiting various stores and comparing products.

9. What exactly are consumer behaviour models?

A consumer behaviour model is a theoretical framework that explains why and how customers make purchases. Consumer behaviour models contextualise the findings of customer behaviour analysis studies and assist you in determining the "why" of purchasing decisions.

10. How do you calculate the frequency of purchases?

The average number of orders placed by each customer is represented by purchase frequency. Divide your total number of orders by your total number of unique customers, using the same time frame as your average order value calculations. As a result, your purchasing frequency will increase.

11. What is the average frequency of purchase?

The average number of transactions per customer per period is calculated using the Average Purchase Frequency. This metric is used to gain a better understanding of customer behaviour and purchasing habits.

12. How do you plan for repeat business?

Forecasting repeat customers

• The likelihood that a person will buy for personal rather than business reasons.

• Individual online purchasing habits and purchase history

• Positive attitudes toward products are demonstrated through social media activity.

13. What are the benefits of repeat purchases for a business?

Customers who return are valuable.

Increasing the profitability of your store begins with the customers you already have. Repeat customers will not only spend more money at your store more frequently, but they will also help market to new customers, making them an effective customer acquisition tool.

Repeat purchase behaviour

 

14. What is the significance of repeat business?

If you're like many businesses, you spend the majority of your time and money acquiring new customers. While this is an important part of running a successful business, it is not the only way. You can build long-lasting profitable relationships by focusing on customer retention and encouraging repeat business.

13. What are the advantages of repeat purchases for a company?

Customers who return are priceless.

Increasing your store's profitability begins with the customers you already have. Repeat customers not only spend more money at your store on a regular basis, but they also help market to new customers, making them an effective customer acquisition tool.

14. What is the value of repeat business?

If your company is like many others, you spend the majority of your time and money on acquiring new customers. While this is a critical component of running a successful business, it is not the only way. By focusing on customer retention and encouraging repeat business, you can establish long-term profitable relationships.

17. What are the four stages of a consumer's purchasing decision?

In general, there are four types of consumer purchasing behaviour:

Routine reaction: ...

 

• Decision-making power is limited:...

• Extensive deliberation:...

• Buying on impulse:

 

18. What are the four factors influencing consumer behaviour?

 

Four major factors influence consumer purchasing behaviour: 1) Cultural, 2) Social, 3) Personal, and 4) Psychological aspects Consumers develop product and brand preferences as a result of these factors.

 

19. What exactly is retail customer behaviour?

Retail customers have increasingly high expectations for the value, variety, availability, and accessibility of products and services. Finding ways to meet these expectations is forcing the retail landscape to change at a breakneck pace. Many of these modifications are obvious and well-documented.

 

20. What is Business Consumer Behaviour?

The study of how people make decisions about what they buy, want, need, or act in relation to a product, service, or company is known as consumer behaviour. Understanding consumer behaviour is critical for predicting how potential customers will react to a new product or service.

21. What are the five stages of the purchasing process for a consumer?

5 Crucial Steps in the Consumer Purchasing Process

• Stage 1: Identifying the Problem.

• The second stage is information gathering.

• Evaluating Solutions is the third stage.

• Stage 4 is the purchase phase.

• The fifth stage is the post-purchase phase.

22. How well do you understand buyer purchasing behaviour?

Consumer Buying Behaviour refers to the ultimate consumer's purchasing behaviour. A company must analyse purchasing behaviour for the following reasons:... The marketing concept emphasises that a company should create a Marketing Mix (MM) that satisfies (provides utility to) customers, so it must analyse what, where, when, and how consumers buy.

23. How common are repeat purchases?

Repeat Purchase Rates Formula

The repeat purchase rate is calculated by dividing purchases from repeat customers by all purchases on the site during a specified time period. For example, if you have 100 customers, 23 of whom have shopped multiple times, your repeat rate is 23%.