This guide will help you to understand
- What a Purchase and Repurchase Analysis is
- Why you should use it
- How to create a Purchase and Repurchase Analysis in Bloomreach Engagement
This analysis illustrates the ratio between first-time purchases and repurchases (i.e. purchases made by returning customers). The repurchase rate is a good indicator of customer loyalty which goes hand in hand with the overall perception of your business. The more satisfied your customers are, the higher the chance they will return again and bring you additional revenue. To build a solid base of loyal customers is not easy, but if you succeed, your business will have stable grounds to flourish.
The Purchase and Repurchase Analysis in conjunction with the cohort analysis provides you with a perfect overview of your customer retention. Although the repurchase rate is a good indicator of your customer loyalty, you should always take into consideration the character of your business. If you are selling hiking boots only, it is probable that you will have a low number of returning customers. In this case, your marketing efforts should be focused rather on the acquisition of new customers than retention.
Although there is no golden rule on what percentage is good enough, if you are getting at least 20% of your customers to return back, your are on the right track. There are, of course, customers who will never come back, however, if you have a tool with similar capabilities to Bloomreach Engagement, you can easily analyze their journey. This will give you valuable insights on what might have been the reason resulting in churn. For example, you may find that churned customers bought the same product (i.e. there may be something wrong with the product itself).
Customer reactivation emails
Incentives for dormant customers/first-time visitors
Web-layers for inactive customers/first-time visitors
* Running aggregates
Analysis > Create a new Report using the following steps.
Be aware that at the beginning of the project, it is natural to see an increasing trend in the % of repurchases. This perceived increase may be caused by the fact that historical purchases have not been imported yet.
Updated 23 days ago