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How to Remarket to Existing Customers for Increasing Repeat Purchases

Looking for productive ways to acquire new customers? It's good to evolve your customer base. But, Have you tried regaining your existing customers? That's the pleasure of a successful eCommerce business - retaining existing customers and turning every new customer into loyal customers. Shipway has got you covered with different ways to encourage repeat purchases!

April 27, 2022
5
mins read
How to Remarket to Existing Customers for Increasing Repeat Purchases

Looking for productive ways to acquire new customers? It's good to evolve your customer base. But, Have you tried regaining your existing customers?

That's the pleasure of a successful eCommerce business - retaining existing customers and turning every new customer into loyal customers.

If you talk about expenses in securing both then acquiring new customers is way more expensive than retaining the existing ones as you only need to re-target them.

Acquiring new customers is not only more expensive than retaining the existing ones. Instead, repeat customers also bring in a significant portion of the revenue.

Studies have shown that repeat customers are able to generate more than 40% of the revenue for an eCommerce business.

How to Encourage Repeat Purchases and Retain Customers

For D2C eCommerce brands that offer replenishable products such as household goods, pet food, beauty essentials, baby products, and others, which are consumed regularly over a period of time, it is crucial to encourage your customers to restock their supply on a regular basis.

Creating this kind of awareness for repeat purchases can boost your revenue of investment (ROI), and ensure sustainable growth.

A recent study from Shopify shows that when a customer returns for a second time to your eCommerce store, it is 45% more likely for them to purchase again, and likewise, if they return for the fourth time the number would jump to 56 percent.

Start re-marketing your existing customers to increase your customer retention rate by 5% and your profits by 25%.

7 Ways to re-market your existing customers to increase repeat purchase

So, are you inspiring your customers to make that second, third and fourth purchase?

If yes, how? If not, or looking for ways how to do it, then here are some strategies to help you increase your average repeat purchase rate.

1. Loyalty Programs

Loyalty programs are supremely effective at retaining customers in the eCommerce business. These programs are efficient in maximizing the lifetime value of your customers if you offer them incentives to spend more on your eCommerce website by frequent purchasing.

A successful loyalty program is always a win-win for brands and their customers. As they bring additional recurring revenue to the business and make customers happy with offers and rewards.

Altogether, this adds up to a better customer experience, which can bring better repeat purchases.

For example, Amazon -

Amazon is well-known among customers for its Prime Membership Program. For a flat annual fee, the Prime members get access to unlimited free 2-day shipping on millions of items, as well as other perks. Amazon has also added its streaming service and Prime Day sales to the Prime membership.

2. Referral Programs

A customer referral program is also known as a refer-a-friend program and is helpful in encouraging your existing customers to recommend a product or service to their friends and family. A successful referral program requires some referral incentive to be given to customers for recommending your product.

A great 1+1 deal where you retain your existing customers while acquiring new ones.

The referral program can turn your happy customers into your brand advocates. Instead of direct targeting potential customers invest in referral programs. Let your existing customers do the advertising for you.

People trust their peers more than any ads, according to the data 92% of customers trust the product recommendations given by their friends and family members. Recommendations from real people gain instant trust from the new users so let your conversion rates grow higher this year.

Start to bid on word-of-mouth marketing, the perfect way to reach new customers for your brand message, and keep existing customers engaged with referral programs at the same time.

For example, Gillette On Demand -

Gillette On Demand, a delivery service for razors, shaving cream, and other shaving needs incentivizes its existing customers to share by offering a two-way discount.

Moreover, through this landing page, they are giving their customers the ability to refer using email, Facebook, and Messenger, which gives shoppers no excuse but to share.

3. Promoting VIP Programs

Discounts, promos, and coupons, they are being used in eCommerce for years now. Not changing the trend but utilizing the offers/discounts correctly.

Incentives to 1st time purchasing customers for their 2nd purchase, re-engaging them with more relevant offers is what everybody is doing to encourage repeat purchases.

Instead, start a VIP program for your eCommerce store, creating a highly motivational environment that encourages your customers to maintain their status in your program in order to maintain their elite status with your brand.

Grant this VIP status to those customers who spend more often on your store than others. Give them privileges such as invitations to special events, quick access to your new products, etc.

For example, Sephora's Beauty Insider -

Sephora ranks as one of the best-tiered programs when it comes to VIP programs. On top of the exclusive products, VIB Rouge members are given access to a number of experiential rewards that are not available to members of the basic Beauty Insider program.  This extra layer of exclusivity makes VIB Rouge a much more valuable status to achieve.

4. Email Retargeting

Personalized post-purchase engagement is crucial for your customers and leaves a positive and lasting impression of your brand.

Your customers have already made an investment in your eCommerce with their purchase. Now it's your time to keep your brand top of mind when they need to make a repurchase, give an exclusive offer for their next purchase that they couldn't resist.

You can keep your customers engaged by helping them get the most out of their new purchase from your eCommerce such as useful information or relevant tips for the product they purchased, a video of assembling the DIY furniture, a hair and make-up tutorials for customers who bought beauty products, etc.

For example, Tarte -

The brand not only sends out promotional emails to its customers as a part of its loyalty program but reminds them of their reward points as well. Each month, they recap their customers' loyalty status (their earned reward points) and how far they are from the next tier. They do it as a gentle reminder to shop more if they want to unlock more benefits in the next level.

5. Personalised Campaigns

Personalized emails are the best way to invite your existing customers to create reminders for special occasions on their thank you page.

You can take advantage of personalized emails for your brands and include relevant product recommendations to cross-sell and up-sell. Even use it to send personalized wishes for your customers' anniversaries, birthdays, or any other special occasion giving an extra discount for their D-day.

Sending exclusive emails to your customers will help you create a personal relationship with your customers.

For example, Container Store -

The Container Store team initiated including a coupon with their customers' birthday messages. Shift their focus from 'your branding' to 'their special occasion' with a warm and fuzzy greeting.

Moreover, if any customer has already planned to treat themselves for their birthday/anniversary, they’ve sweetened the deal for them, making it irresistible - as now they will not have to pay full price for their purchase.

6. User-generated Content

Displaying user-generated content is important for D2C growth - such as product videos and photos posted by your existing customers on your e-commerce website deliver exactly what shoppers want.

Product reviews and ratings from existing customers provide assurance to other customers that your brand is reliable. Give access to your future customers to know more about your products from your existing customers themselves.

For example, Vanity Planet -

Vanity Planet turned its regular product page into a dynamic community. They made it more powerful for their 1st-time visitors to feel very confident with their brand as well as letting their existing customers’ space where they could voice their opinion.

Displaying UGC, Vanity Planet was able to grow its conversions by 24% from the visitors reaching their product page to the checkout page - through the placement of UGC photos.

7. WhatsApp Re-marketing

Cart abandoners or customers who viewed your eCommerce site but left without purchasing can be brought back through retargeting. The good thing today is that now you can reach your customers through WhatsApp.

Introduce some creative and innovative techniques to deliver these cart recovery notifications. Such as, if a customer adds a product to the cart but hasn’t completed the checkout process, you can send a cart recovery reminder notification on WhatsApp.

Many brands have found WhatsApp to be the best communication channel for their customer engagement and to utilize their existing customer base to reduce cart abandonment.

Analyze the best time to start focusing on customer retention

Whether you are focusing on customer acquisition or retention, it is heavily influenced by the lifecycle stage in which your online store currently is.

Undoubtedly, a store that started a few days ago is vastly different than the one that’s been up and running for many years.

Take a look at the timeline shown below for general awareness of your online store to know where to invest your potential.

Image Source

Besides the current stage of your online store, you'll also have to tailor your retention strategy based on what you sell and your target audience (end customers).

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