How Does Returning Customer Behavior Differ from New Customers’?

How Does Returning Customer Behavior Differ from New Customers’?

Repeat customers are some of the profitable customers you have, but it can be difficult to lock down precisely how. If you’re in the middle of revamping your advertising campaigns and you want to know who to target and how much you can expect from your investment, setting your expectations is important. Here are some important considerations to keep in mind:

  • Not only do repeat customers make more purchases, they more likely to make another purchase the longer they return. Once customers consider your store to be a trusted vendor, they will keep it in their rotation of shops. This likelihood of making return visits and purchases increases every time: while a first-time customer is only 27% likely to come back a second time, 54% of customers on their third trip will come back to make a fourth purchase.
  • Loyal customers spend more at your store. Whether it’s because of loyalty incentives or because customers prefer your products and services, returning customers spend more. In fact, your 10% most loyal customers spend 300% per occasion than the rest. And, just like with the odds of a customer returning, their per purchase total goes up each time.

80% of the average company’s marketing budget is spent on enticing new customers and reaching out to a new audience. But a sizeable amount of your revenue comes from repeat customers, so it’s better to readjust your marketing campaigns to reach out to one- and two-time customers to start converting them into loyal return customers. Go to RAFIT Services for more strategies and tips.

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