BizReport

RSS feed Get our RSS feed

News by Topic




BizReport : Ecommerce : June 05, 2015


Only one-third of online customers make second purchase within the year

Despite the efforts of marketers to retain customers and garner repeat purchases, a recent study by ecommerce analytics platform RJMetrics reveals that just one third of customers go on to purchase again within a year of their first purchase.

by Helen Leggatt

According to RJMetrics, very few retailers are successfully keeping customers coming back to make additional purchases.

"If you're one of the few retailers who has figured out how to keep your customers coming back you're on the path to something very big," says RJMetrics CEO, Robert J. Moore.

In their analysis of 176 ecommerce retailers and 18 million customers, RJMetrics found that just 32% of ecommerce customers purchase again within a year of their first purchase. Those that do are 53% more likely to place a third order as repeat purchase probability increases with each order.

However, they also found that the most successful online retailers did succeed building longer-term customer relationships. The top quartile companies were found to have customer lifetime values 79% higher than less successful retailers.

RJMetrics' study, 'Ecommerce Buyer Behavior', pointed towards identifying, through use of data, high-value customers and focusing retention efforts on that segment. Their research revealed that those high-value customers are 18x more valuable than the average customer and will spend more than the entire lower 50% combined.

"CLV [Customer Lifetime Value] is the most important metric for understanding your business," says Kevin Hillstrom, president of MineThatData. "It reveals not just how customers behave in a specific campaign or on a specific page, but how their purchase behaviors change over time. In these behavior patterns hide the answers for every decision your team needs to make, from campaign optimization to when to send that first retention email."






Image via Shutterstock

Tags: customer retention, ecommerce, marketing strategy, retail








Subscribe to BizReport







http://www.bizreport.com/2015/06/only-one-third-of-online-customers-make-second-purchase-with.html

 

 

Copyright © 1999- BizReport. All rights reserved.
Republication or redistribution of BizReport content is expressly prohibited without the prior written consent.
BizReport shall not be liable for any errors in the content, or for any actions taken in reliance thereon.