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BizReport : Loyalty Marketing : June 01, 2018

Report shows repeat customers more valuable

While many campaigns are keying in on getting consumers to first visit a store - be than an online hub or a brick and mortar retailer - new data suggests it could behoove marketers to invest a bit more in repeat shoppers.

by Kristina Knight

New data from Bluecore shows that 60% of one time shoppers will make a second purchase within 100 days of that initial shop, but more than that, the data shows that this second purchase is up to 130% more valuable for merchants than the first purchase made. That is because as shoppers make additional purchases within the same store, they become even more apt to return to that hub.

The problem is that the longer merchants wait to get shoppers back into a store, the lower the chance that the consumer will make a purchase. So, while 60% of shoppers return to a store within 100 days, after that 100 day mark, the chances of a second purchase - and a third, and a fourth, and so on - dip significantly.

Researchers found that the chance of making a one time buyer a second time customer dip to about 10% after that 100 day mark, making it imperative for merchants to have a marketing plan in place to retarget first time buyers.

"Despite all the opportunity that comes from the second purchase, crossing the chasm from the first purchase is typically the most difficult for retailers," write the authors of the report. "Unlocking your second purchase. . .comes down in large part to understanding your customers, their behaviors and your products. Most importantly, you need to take the time to understand your ideal window of opportunity for driving second purchases and the products that are most likely to help drive those purchases."

Bluecore works with more than 400 businesses, and for this report researchers studied how 16 apparel merchants fared over a two year period. They found that about 80% of consumers are one-time purchasers, but that converting just 5% of those one-time buyers into repeat customers could be worth more than $500,000 for merchants.

The full Bluecore report can be accessed here.

Tags: advertising, advertising data, Bluecore, ecommerce, ecommerce data, loyalty marketing

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