Do you want to increase your orders by 84 % as our client prvni-lekarna.cz? More than 50% of our customers get a 10% increase in sales using our platform and best practices, some of them achieve even 30% revenue growth such as Krmeni.cz.
For many digital marketers, the funnel ends with converting a lead into a customer and they invest most of the time and resources to chase after leads. After their first purchase, they just start sending a general newsletter and focus on attracting new customers. But every existing customer can become a long-term client, with significantly lower costs than attracting a new one. Furthermore, repeat customers bring higher average order value compared to first-time customers.
There are several metrics that you may find. Repeat purchase rate, re-order rate or customer retention rate but they all describe simple facts if your customers return to purchase more goods or services from you. Depending on your segment, your repeat purchase rate may vary but you may consider a repeat purchase rate from 20-40% good.
You can easily get your actual open rate in Samba business insights. Business insights tells you not only the actual rate of repeated orders made by your customers, but the average number of days between them and also trends showing how successful you are with repeated orders.
For example this client is having only 18.6% of success rate for second purchases. Second purchase is made once per 228 days and in general the rate of repeated purchase is decreasing over time.
Successful strategy for increasing second purchases is different for every ecommerce store and usually depends on the product category purchased in the first order.
Let's look at our client mentioned above. In this specific case, our general suggestion would be:
To find categories on your ecommerce, where your customers purchase most for the second time isn't always as straightforward as it might sound. Great helper in this situation is again Samba Business Insights.
First, look for the product category that earns you the most revenue and start over them with second purchase analysis.
Our client is having one product category really dominant and the first four product categories earn him almost 70% of his yearly revenue.
Tip: If you don't have Samba business insights available, you can get quick information about your top performing categories in Samba directly - Audience and filters, recently purchased products. In this special, compound filter, you can choose your product category, filter all the customers who made purchases and see overall revenue they bring you.
Sometimes, the top performing product categories aren't the best one to start with. That's why you need to know how many customers repeated their purchase in a specific product category and at the same time what revenue it delivers to your business.
The easiest way to get this information in Samba, is again to use recently purchased products segmentation, but with slightly different conditions.
This filter will select all your customers, who did more than 1 order in the specified category.
Is important to select the analyzed product category, set the number of purchases for more than 1 and change “what to count” to orders. And you can immediately see the overall revenue they generated to your business.
For example, our client will discover that revenue generated from a customer's second purchase is almost the same in the second product category, despite the fact that overall revenue is three times bigger in the first category. That might signal an opportunity to significantly increase second purchase in the first category, but with respect to maximizing earnings over time it's better to develop first flow automation on the most promising product category - the second one and after that, return back to finish automation in the first category.
Let's say the second category in our example is the category with iPhones. You can again look into Samba and find what is the top selling products from iPhones category. Most probably you will find that the most selling product is a mobile phone with a cover and that 15% of your customers also bought wireless headphones in first order.
This is a great business insight which can be used as hypothesis for our first flow automation campaign:
“For all the customers who bought an iPhone, send after 14 days an upsell newsletter and offer an earpod together with other personalized products”.
Let's stop here for a while - how do we discover 14 days is the best time to sell an upsell offer? There are two ways - first, most commonly used - you will guess it on your own. You like the number 14 more than 13 and less than 15 :-)
Second way is to use Samba business insights and discovery.
On the Samba.ai platform, we call those flow campaigns:
Samba Analytics offers you all the information you need to set up a flow campaign. An important aspect is the time delay - you can find the average time delay before a customer makes a second purchase. We usually recommend targeting your first-time customer a week before the predicted second purchase or after two weeks after their first purchase if you do not find the statistically ideal time to send them. In this campaign, we are going to send an email to all the customers that made only one purchase in the last 30 days.
You simply click on Flow campaigns from the main menu, fill in the name, activation, execution and targeting details. If you are not sure how to create this campaign, find comprehensive information here http://bit.ly/Flowcampaigns
Creating a separate group of customers is the keystone to relevant and targeted communication. In this case, you just click the filter Recently purchased products and Days since last purchase, setting it up to less than 30. This way, you have filtered customers whose last purchase occurred in the past months. After creating this audience, you can create more relevant communication. You can prepare personalized messages with custom parameters of the purchase, such as suggesting a pink phone case to customers with a pink iPhone.
The best option is to create an even more specific segment of your customers. In this case, we want to upsell our iPhone owner and we are going to offer a discount on Apple's headphones, AirPods. The reasoning behind is quite obvious: an iPhone user will be probably more interested in buying an accessory from the same brand.
Therefore, we are going to create a segment of customers that bought an iPhone as their first purchase. In order to do so, we select a condition: Recently purchased products within the Products category, we add Product and choose Mobile phones - iPhone from the drop-down menu. The period from the purchase can be set in the filter Days since purchase.
Let's make sure we send our email to customers that only purchased an iPhone (and avoid the common mistake of pushing an already owned product to your customers) and set the Number of purchases to equal 1. We add another criterion What to count: orders so we ensure that only the orders fulfilling the above criteria will be filtered. And by filtering the number of purchases, we select customers with only one order, i. e. first-time customers.
Intuitive interface for creating your flow and choosing a new action for your nodes
Product filter will therefore look like this:
We have carefully chosen the audience and in order to have the highest success of reactivating those first-time customers, we want to make this email the most enticing possible. We are going to test the Open rate. We therefore prepare two versions of the subject, send it to a sample of your audience and see which one performs better, i. E. is more often open. If you need help in choosing the size of test groups, use this tool http://bit.ly/ab_calculator.
You add this test to the flow as a new node by clicking the small blue dot under the Flow activation. You add a Split action and create two segments set to 50%.
After selecting a target group of customers that bought an iPhone as their first purchase within the last 30 days, we can prepare the offer for them. We add an Email from the action menu, fill the Basic settings and we do not forget to choose the A/B test option, when filling the subject.
And we let Samba do its AI magic when applying a product filter.
You have successfully chosen the target group of first-time customers who bought an iPhone. Add an Email from the action menu. When creating an email, you can choose from two message types: static and personalized.
A static message is beneficial if you want to input information that is valid over a longer time period but you need to monitor product disponibility. Benefits of personalized: adapting to the products, every client gets a different recommendation and relevant information: pink iphone with pink headphones
To save time, we are going to use a prepared template First purchase welcome series from the Flow editor, with two containers for products. Just fill it with relevant brand information, info texts and other content.
Congratulations, you have just created a flow campaign! You just need to launch it. And of course, come back in a week to analyze the results.
It is always a good idea to get feedback and Samba.ai provides it efficiently. Just navigate to the Campaign results and check the statistics.
There are several steps you may take to get even better results from our emailing campaigns.
There is a third group you may target as well -- those who have opened the email and did nothing more.
You simply create the appropriate groups in Campaign activity, apply relevant actions to those groups and continue with this segmentation.
And last, but not least. Be consistent with your communication, create a structure for your newsletters and try to stick to it. Use your claims or USP repeatedly so your customer always associates you with “the most animal-friendly shop in the Czech Republic” or “order by noon, get your goods the next business day”.
Do you want to bring the Samba.ai magic to your customers, too? Register for a demo here. Because every online shop deserves first-class online marketing.