If you've read our website or followed our blog, you'll know that we love big data. By delivering high-quality insights, we can help you refine your sales and marketing strategies, driving your numbers ever-higher. Of course, we know not everyone loves data as much as we do. There's a lot of information out there, and using it effectively takes a little education and plenty of work.
Data speaks and, luckily, we are fluent in that language. So, today, we'll be exploring one of the most profitable points of traffic analytics (and perhaps the most under-appreciated), the average customer repeat rate. Read on, to learn more about this metric, why it's got so much potential for profit, and how you can use updated strategies to take advantage of it.
What Is Average Customer Repeat Rate?
Let's start simply by looking at what average customer repeat rate actually is. Our dashboard defines the customer repeat rate as "the average number of times that customers visited your location during a given time period." Essentially, this data set will track who your repeat customers are and how often they do business with you before delivering an average that will help you determine your customer retention rating.
These numbers - and the customers they represent - are crucial to building a better customer experience and expanding the influence of your brand. So, if there's one piece of advice we can give you, it's this: focus on repeat customers and driving your average repeat customer rate higher. Why? Well, the numbers don't lie. And data is nothing but numbers. Take a look at some of the reasons why repeat customers are the most profitable.
Repetition is the Key to Loyalty
Rule of thumb: if your average customer repeat rate goes up, you're doing something right. Repeat customers are the backbone of any business, creating a reliable avenue for revenue and (hopefully) becoming promoters for your business along the way. Customer loyalty is a commodity all its own. Not to mention, repeat customers are cheaper to retain... Just take a look at the data on repeat customer conversions.
Higher Conversion Rates
Repeat customers are easier to sell to. They've already bought your product and interacted with your company, so there's no need to win them over. In fact, according to Marketing Metrics by Paul Farris, a repeat customer has a 60%-70% chance of converting. This number is astronomical in comparison with the estimated 1%-3% average global conversion rate.
By focusing on repeat customers, you can spend less on advertising and conversion tactics and focus on building a better customer experience. If you make your existing customers happy, they'll become your best source of advertisement.
Repeat customers also tend to spend more. It's been estimated that repeat customers are responsible for generating up to 40% of a given business' revenue. Not only that, but repeat customers spend more on average than a first-time buyer. Additionally, there is a direct correlation between how long a customer has been with you and how much they spend.
With this information in hand, it's safe to say that repeat customers are crucial to the success of your business. Who knew?
Rewarding Repeat Customers
There's nothing like a user-friendly customer experience that is personalized and rewarding. Think of the things that motivate your customers to do business with you again and again. Sure, you've got a great product, but in the age of Amazon what makes you stick out? Do you deliver exceptional customer service by following up on every sale? Do you offer a rewards program that encourages repeat purchases to earn exclusive discounts? Capture your customers' loyalty with retention tools and watch that average customer repeat rate soar!
There you have it: everything you need to know about the customer repeat rate. It's a pretty exciting tool on its own, but when used in conjunction with our other traffic analytics (First Time Visitor Return Rate, Lifetime Value of Customers, Churn Rate, etc.) you'll have access to profound insights that will allow you to collect, analyze and react to the needs of your customers. Increase your customer frequency, revolutionize the way you market yourself, and watch your business grow with the help of Bloom Intelligence. Contact us to learn more!