We all wish that our customers would buy more and become regular shoppers. This is true for a physical businesses, and online businesses alike. The need to reduce churn is vital for an online store and this is why you need to focus on ways to boost repeat purchases.
If all of our customers continued to purchase on a regular basis we wouldn’t have to put all of our marketing dollars into customer acquisition. If only..
Today’s post is about bringing you 3 easy steps to do just that, to build your repeat business and boost repeat purchases.
1. Set up a referral program
One of the most effective form of marketing is word of mouth. According to SmartInsights 54% of all purchase decisions come from word of mouth. One of the best ways to maximize on this is by setting up a referral program.
This is actually much easier than you think. There are numerous platforms that allow you to easily set one up. If you are looking for a simple widget you can use Viral Loops. If you are looking for something more comprehensive you can use Omnistar.
One really successful strategy is to use an incremental reward system, where the more friends a customer referrals the more rewards they get. One example of this is the shaving company Harry, that received over 100,000 emails in one week.
Here is another great example of a referral component in an email. This one is by Airbnb and it is so incredibly well designed and looks so inviting… I’m about to get the travel bug…
2. Send out a discount code after each purchase
Another great way to boost repeat purchases is to include a discount code in your post-purchase email. This is a simple but very effective strategy.
Remember to not give them a generic discount for they will think that they missed out on it before, might even cancel their order and use the discount that you sent out.
Create a special discount for returning customers or for second purchases. This will be the most effective way to get their support and returning business.
3. Send personalized product recommendations
Imagine that the customer just bought something from your site, they are new, it’s their first purchase. So they obviously didn’t get the time to check out all the products that you have to offer.
Now you send them an email thanking them for their purchase, providing the shipping method and the tracking info. Then you give them a special discount to a related product. Personalized product recommendations are proven to increase sales and reduce churn
There are a variety of different ways to do this:
- Display related products (if they purchased a surfboard – show them other surf gear)
- If the item was part of a set you can show them the other items in the set
- Offer items that are used to maintain the item they bought (like a fix-it kit)
- Display items in the same price range or the same category
The makeup company CRUSH used this strategy really well. When a customer purchased a certain makeup item, they would automatically send them an email after 6 months, the estimated time the customer would require a replacement. They made sure that the customer thought of them first when they decided to order another item.
Recap
The more repeat business a company has the more stable it is. Repeat business brings more income and more opportunities to invest in new product or to expand the company headquarters. Also, a boost to repeat business makes the investors more confident as well and can increase the company’s valuation.
How do you boost repeat business? First, start a referral program. Second, send out discount codes to all your customers, especially the ones that made their first order on your site. And third, send out customized product recommendation emails.
If you use these three strategies you will surely increase your sales and your repeat business.
