In Repeat Customer Insights I code in some industry statistics to make it easier to compare your Shopify store to ecommerce as a whole.
The percentage of customers buying again (Repeat Purchase Rate) is about 27% which means an average store will get 1 out of 4 customers to buy again.
Some stores are better. Some are worse.
As you watch new orders come in, your store should strive to do better than that. Maybe getting 1 out of every 3 customers or even every other customer to buy again.
It's hard.
It takes time.
It takes work.
But it can be amazing to your bottom line.
First off, because there's almost no cost to acquiring a repeat purchase so there's more profit to those orders.
Second off, because every time a customer repurchases they are more likely to repurchase again which means more revenue and profit.
That 1 out of 4 rate continues on and on...out of 16 customers, 4 will buy a second time, and 1 will buy a third time. I've seen stores where customers buy dozens of times through their lifecycle.
There's some complex formulas behind the revenue too. If you can get every other customer to buy again you'll double your revenue. 1 out of 3 is almost 50% more revenue.
It's like that compound interest magic.
Day-to-day find those little ways to build each relationship. When you have time, build assets that work on a larger scales (e.g. loyalty programs, new customer welcome campaigns).
If you need help checking your Repeat Purchase Rate, it's one of the metrics included in my app that is calculated automatically for you.
Eric Davis
Retain the best customers and leave the worst for your competitors to steal
If you're having problems with customers not coming back or defecting to competitors, Repeat Customer Insights might help uncover why that's happening.
Using its analyses you can figure out how to better target the good customers and let the bad ones go elsewhere.