What convinces a first-time customer to make another purchase from your ecommerce site? And what could cause them to go with a competitor instead?
In this article, we’ll answer these questions and review seven strategies to convince buyers to return to your store again and again.
Introduction to Repeat Purchases
What exactly are repeat purchases, why are they so important to your business’s success, and why should you track your repeat purchase rate? Read on to find out.
What Is a Repeat Purchase?
A repeat purchase is when a customer buys from your store more than once during a specific time period. It’s an important sign of customer satisfaction and loyalty, showing that your products have met or exceeded expectations enough to bring someone back for another purchase.
Why Are Repeat Purchases Important?
As you probably know, acquiring new customers is significantly more expensive than retaining existing ones. By encouraging repeat purchases, brands save money on customer acquisition, build a following of loyal customers (who tend to spend more), and even reach new buyers through positive word-of-mouth recommendations and reviews.
Why Track Your Repeat Purchase Rate?
Monitoring your repeat purchase rate—the percentage of customers who return to buy again—allows you to gauge both customer loyalty and the long-term health of your business. It also helps you identify areas where your customer experience or products could be improved.
The Psychology of Repeat Purchases
Why do some customers continue to purchase from a business, while others buy once and never return? While many factors influence customer retention, the following are some of the most impactful:
- Trust and reliability. When customers trust your brand to deliver high-quality products, a reliable shopping experience, and excellent customer service, they’re more likely to return.
- Emotional connection. Customers tend to remain loyal when they feel an emotional connection with your brand, whether through shared values, compelling storytelling, or a sense of community.
- Convenience. A smooth, hassle-free shopping experience encourages shoppers to return for future purchases. Features like easy navigation, quick checkout processes, and fast shipping save time and effort, making repeat purchases an obvious choice.
- Added value. In addition to great products and a convenient shopping experience, extra incentives like loyalty programs, discounts, and exclusive offers give customers a reason to come back. These perks make shoppers feel appreciated and help you stand out from the competition.
Fortunately, you have control over each of these factors. With the right know-how, you can build trust, foster emotional connections, make the shopping experience more convenient, and provide the added value that consumers crave.
Before taking action to encourage repeat purchase behavior, though, you need to know how effective your current efforts are. To do that, you’ll need to calculate your repeat purchase rate.
Measuring Success: How To Calculate Repeat Purchase Rate
To calculate your repeat purchase rate, start by choosing a specific time frame to analyze, such as a week, month, quarter, or year.
Next, gather the necessary data. You’ll need two numbers: the total number of customers who made purchases during the chosen time frame and the number of customers who made more than one purchase (repeat customers).
Once you’ve collected the data, simply plug it into the repeat purchase rate formula:
Repeat purchase rate = (Repeat customers / Total customers) × 100
Repeat Purchase Examples
Curious about how the repeat purchase formula might apply in a real-world situation? Let’s take a look at two examples.
Example 1: Jewelry business
A small jewelry business sells unique, handmade pieces. Over the last quarter, 250 customers purchased from the store, and 50 of them made more than one purchase.
Repeat purchase rate = (50 / 250) × 100 = 20%
This 20% rate shows that one in five customers returned within the span of several months, which is solid for a small, niche business.
Example 2: Outdoor equipment store
Next, we’ll look at a midsize ecommerce store specializing in outdoor equipment and apparel. In one quarter, the business had 15,000 total customers, with 3,000 of them making repeat purchases.
Repeat purchase rate = (3,000 / 15,000) × 100 = 20%
Interestingly, this business has the same repeat purchase rate as the smaller jewelry store, but its larger customer base means it retains a higher absolute number of customers.
7 Strategies To Boost Repeat Purchases
By implementing the seven strategies below, your business will build trust with customers and provide an online shopping experience that keeps them coming back.
1. Focus on the Post-Purchase Experience
Beyond product quality, the experience a person has with a brand plays a major role in determining whether they’ll become a repeat customer. Think about it: if a restaurant has tasty food but slow or inattentive service, are you eager to eat there again? Probably not.
The same holds true for online shoppers. A late package, damaged product, or missing item will likely leave them with a bad taste in their mouth.
Because of this, it’s critical to design a great post-purchase experience. Try focusing on these three elements:
- Unboxing experience. Packaging is the first thing customers see when their order arrives, and a positive unboxing experience can create excitement and joy. Consider using branded materials, adding personalized notes, or including small surprise gifts.
- Delivery. Are your packages delivered on time? Can customers easily track their shipment’s status? Keeping customers informed with shipping updates helps reduce anxiety, while choosing reliable carriers can minimize frustrating delays.
- Shipping issue resolution. If there’s an issue with shipping, like a delayed, lost, or stolen package, make sure to address it quickly and efficiently. Many businesses simplify issue resolution by partnering with shipping insurance providers, like Norton Shopping Guarantee, who handle the claims process from start to finish.
2. Keep in Touch With Customers
Staying in touch with customers after their first purchase helps keep your brand top of mind, encouraging them to return when they’re ready to buy again.
But what should you actually say to customers to keep them engaged?
For starters, sending tailored offers or recommending products based on a customer’s previous purchases is an effective way to boost engagement. For example, if a shopper bought running shoes, you might follow up with a discount on running socks or an email showcasing new running gear.
Another great idea is letting customers know when something new drops—like a product upgrade, a seasonal collection, or a restock of popular items.
Finally, if you sell consumable goods like food or beauty products, you might want to send reminders when it’s time to reorder (based on the average reorder time).
3. Offer an Incentive
Offering an incentive can be a powerful way to motivate customers to make repeat purchases. Whether it’s a discount, a special offer, or something extra, incentives create a sense of urgency and excitement.
Try the following types of incentives:
- Discount on next purchase. Offering a discount on their next order encourages buyers to return soon to take advantage of the savings.
- Free shipping. Shipping costs are a common barrier to purchase, and offering free shipping can make it easier for customers to follow through on a repeat purchase without an added financial burden.
- Special deal. Promotions like “buy one, get one free” create a sense of urgency, often pushing customers to buy more than they initially planned in order to take full advantage of the deal.
- Free gift. Try including a gift (like a sample product or branded merchandise) with a purchase to show appreciation for customers and enhance the overall shopping experience.
4. Provide Personalized Product Recommendations
One surefire way to increase your repeat purchase rate is to personalize the shopping experience for your customers.
To do this, use data on each customer’s behavior—like past purchases or browsing behavior—to suggest products they’re likely to be interested in. For example, you might send follow-up emails after a purchase, recommending complementary products or new arrivals that match their style.
On your website, display tailored product suggestions based on what people have bought or viewed before. This kind of personalization not only makes shopping more enjoyable for your customers but also increases the likelihood they’ll come back for more.
5. Start a Loyalty or Referral Program
Loyalty and referral programs are both great ways to reward your existing customers and turn them into repeat buyers. They also help you acquire new customers through word-of-mouth recommendations.
Loyalty programs are usually rewards-based systems where customers earn points for every purchase they make, which can be redeemed for discounts or exclusive perks. You can even offer tiered rewards for customers who reach certain spending milestones.
Referral programs work in a similar way, but they encourage your current customers to spread the word about your business in exchange for rewards, like discounts or free products. To kick things off, try offering a “give $10, get $10” deal for customers who refer a friend, making it a win-win for both sides.
6. Provide Excellent Customer Service
When customers have a positive experience with your support team—whether it’s through quick responses, helpful advice, or easy problem resolution—they’re more likely to return because they feel valued and supported.
To ensure your customer service lives up to expectations, train your team to be responsive, friendly, and proactive, no matter which channel customers use to get in touch.
Want to go the extra mile? To show customers you care about their experience and opinions, ask for feedback (reviews or ratings) on recent purchases. The feedback you collect will increase the likelihood of repeat purchases and reveal ways to improve your business for the future.
7. Showcase Your Values
When customers feel aligned with your values, a purchase isn’t just an opportunity to get something new—it’s a chance to support something they believe in. Patagonia and Toms are both great examples of showcasing values to strengthen connections with buyers.
- Patagonia. Known for its commitment to environmental sustainability, Patagonia showcases its values by using recycled materials in its products and pledging a percentage of profits to environmental causes.
- Toms. Toms built its brand around the "One for One" model—for every pair of shoes purchased, they donated a pair to someone in need. Now, they donate one-third of their profits to good causes. This approach resonates with customers who appreciate the brand’s focus on social responsibility.
To implement this strategy, feature your values on your website or in your marketing materials, being transparent about the practices that matter most to you. In addition, consider creating content that highlights your core values, such as a social media post sharing the story behind your products or a blog article that showcases the positive impact your company is making.
Keep Your Customers Coming Back With Norton Shopping Guarantee
Shipping issues—lost, stolen, or damaged packages—often leave customers frustrated and unwilling to purchase from a merchant again. But your brand shouldn’t miss out on repeat purchases because of shipping disasters.
With Norton Shopping Guarantee, customers have the option to purchase package protection at checkout. If something goes wrong with delivery, our team handles the claims process quickly and efficiently, leaving customers satisfied instead of frustrated.
Boost your repeat purchase rate with Norton Shopping Guarantee—learn how it works.
