You are wrong if you think that your re-targeting campaign for old customers is not going to fetch you marketing campaign results. And as the holiday shopping weeks approach faster, this is the perfect time for ecommerce stores to earn repeat businesses! Wish to know why? Read on.
A large chunk of marketing budget, strategies and efforts are involved while getting just one new customer pay-off after each campaign. While measuring this cost over the time from a particular campaign is only a waste and are more likely to increase marketing spending, even a slight increase in customer retention say by 5% can increase profit up to 95%. Such is the importance of a repeated customer! If you are still not convinced, here are 10 awesome consumer stats that establish the fact.
- 40% of store revenues are generated from 8% of customers.
- These 8% are repeat customers that are extremely profitable for ecommerce businesses.
- After the first purchase, a customer has 27% chance of returning to your store.
- As a marketer, if you are successful in making the customer come back for second and third purchase applying your marketing strategies, there is 54% chance of the customer to purchase again.
- For most ecommerce businesses, an average conversion rate is between 1% and 3%
- A repeat customer is more likely to convert with a conversion rate of 60-70% chance of converting
- Unlike an average customer, loyal customers who make frequent purchases are more profitable. Top 10% loyal customers spend 3x more per order, unlike rest 90% of average customers.
- 1% of top loyal customers spend 5x more than the rest 90% of average cu
- During the holiday time, an average shopper spends 17% more per transaction while your repeat customer spends 255 more per transaction.
- A customer who makes 10 purchases is likely to refer 50% more clients than a one-time shopper.
Taking a note of the above business stats can let you focus on what needs tweaking if you are planning ahead your retention strategy to re-target your old customers in the coming year.
To know more follow the Book: The New Frontiers of Marketing written by Subhakar Rao Surapaneni