Service and repurchase rate: importance and stock tips
Understand what it is, how to calculate, and tips for actions focused on the customer experience that can improve service and repurchase rate together.
The goal of every company is to build a base of Satisfied customers and active. To achieve this goal, the customer experience needs to be satisfactory enough to result in multiple purchases over the course of your relationship with the brand. It is at this point that service and repurchase rate intertwine.
A customer begins to be served by a company from the moment they contact it while doing the first search for suppliers or price.
A well-constructed online product page that provides all the relevant details about a product or service for purchase delivers what the customer needs to know.
If that potential customer is converted, the quality of the experience and the efficiency of the service continue to count for them to remain engaged and give preference to the company.
Have you ever thought about how service designed with a focus on the customer and their needs can influence the repurchase rate of your business?
In this article, we explain about the indicator, its importance, and list some tips for actions that help to make the customer experience richer with good service.
Have a good read and enjoy!
What does repurchase rate mean?
The repurchase rate is a management indicator that shows the percentage of existing customers who purchased more than once in a given period, which may be a month, semester, or year.
Companies constantly invest in acquiring new customers and creating a relationship with current customers is sometimes overlooked.
However, if you don't create a rapport and offered an after-sales experience as impactful as the one that converted you into a customer for the first time, the investment may not generate the expected return.
The study 'The True Profitability of Repeat Customers Online'from Smile.io highlights that even existing and loyal customers represent only 8% of a sales site's traffic, they represent 41% of revenue.
In other words, actions aimed at retaining customers have great potential for returns, if businesses invest in initiatives to strengthen relationships and benefit the loyalty of current customers.
Also read >>> The new digital consumer: how to fulfill this profile?
How to calculate the repurchase rate?
To calculate the repurchase rate, the formula is quite simple: divide the number of customers who purchased more than once by the total number of customers in the same period.
Repurchase rate = number of customers with more than one purchase (per month) ÷ total number of customers (in the month).
To obtain the percentage rate, simply multiply the result obtained by 100.
For example, if in a month, 20 customers purchased more than once and a total of 80 sales were made in that period. The repurchase rate is 25%.
What is the ideal repurchase rate?
Each trade will have its margin, based on its historical data. By calculating and monitoring the repurchase rate over time, it is possible to set realistic goals to evolve the indicator.
For comparison, Meta's Chief Marketing and Analytics Officer, Alex Schultz, states that “a business that manages to get 20% to 30% of customers to buy back every month is doing very well”.
Monday to Shopify, a platform for creating e-commerce, the repurchase rate of start-up sites is 27%.
And how do you combine service and repurchase rate objectives so that customers return a second, third, and fourth time?
5 tips that favor an increase in the repurchase rate
The secret to improving the repurchase rate lies in create a valuable experience for the customer and this is where the Customer Experience sector, the famous CX, comes into action.
Below, we have selected tips that will help increase the repurchase rate and, at the same time, provide quality service. Check it out!
1. Harness the power of email
O emailing it's a valuable tool for creating campaigns aimed at existing customers who are already connected to the brand and are more likely to open messages. Some ideas for taking advantage of these contacts are:
- create email flows with welcome campaigns. They have the highest open and click rate, on average, 50%;
- direct campaigns to contacts with an abandoned cart. This type of email has a conversion rate of 10.7%;
- extend campaign benefits exclusively to the best clients.
2. Customize contacts
From pre-sales to post-sales, the touchpoints of the customer journey must be personalized. This includes both referring to him by name, as well as knowing his history with the company and recommending products and services that he is interested in.
Take advantage of data from service software, sales platform, CRM, marketing, and other tools to improve communication. It is even possible to align the sending time of email campaigns with the historical data that shows when they are most opened.
3. Create an easy shopping experience
Locking the customer experience right at the time of closing the purchase, including several steps, can make them give up without even finalizing it.
Constantly review the purchase process and the points of contact with the service team so that it is nimble. Also listen to customer feedback and make the requested adjustments. The more autonomy the customer has to renew or buy, the better.
Also read >>> Chatbot in customer service: benefits, challenges and how to use
4. Answer all customer questions and concerns
Here the service team is essential for the repurchase rate. A customer buys only if they are 100% sure and this favors subsequent potential purchases.
Structure and divide the team so that it can monitor all social channels, in addition to WhatsApp and others that are available.
Create efficient after-sales service so that the first contact after the purchase assists the customer with their main questions and needs.
5. Set up a loyalty or rewards program
Engaged customers like to be rewarded. Raise ideas internally and take feedback from customers themselves to set up a loyalty program with attractive rewards that encourage repurchases.
Discount coupon campaigns also work at various times, such as with the first purchase. Defining a coupon for purchases over a minimum amount or free lifetime shipping for loyalty program customers can also help increase sales volume.
Build a trained service team
Strategies aimed at service and repurchase rate require a highly qualified team to execute them.
A Cloud Humans can help your company optimize support processes and those related to the customer experience. Thus, your team is able to provide a humanized, fast and assertive service.
Talk to our experts who are available to present our solution and show how much it can help you achieve your business objectives.