Timing Your Promotions To Convert New Customers Into Repeat Customers

timing-your-promotions-to-convert-new-customers-into-repeat-customers

Getting your one-time customers to buy a second time takes proper timing.

Send marketing messages too soon and you’ll disengage customers.

Send them too late and you’ll miss other customers who ordered elsewhere.

This is especially important if your products are consumable or otherwise refillable. If someone orders a 30 day supply, you can expect them to reorder 30 days later. Non-consumable products also have buying cycles but they are more difficult to detect.

To figure out when to start promoting to one-time customers, you’ll want to calculate the Customer Purchase Latency. This is the average delay between the first and second orders.

You’ll get a number, like 65 days. That means there’s a 65 day delay between the first order and second order.

One warning: I hear about stores using the store-wide Average Latency for this which is wrong.

The Average Latency is for every purchase. The second, third, fourth, even 100th. Since repeat customers tend to order sooner and more frequently in later purchases, that Average Latency is too optimistic.

That’s why you want to use the latency between the first and second orders when you’re marketing to one-time customers. In Repeat Customer Insights that’ll be in the Order Sequencing Analysis and 1-to-2 Customers focus.

Eric Davis

Use cohorts to find out who the best customers are in your Shopify store

Repeat Customer Insights will automatically group your customers into cohorts based on when they first purchased. This will let you see how the date customers bought would impact their behavior.

Install Repeat Customer Insights for Shopify

This originally appeared on the LittleStream Software Blog and is made available here to cast a wider net of discovery.
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Author

Steve has entrepreneurship in his DNA. Starting in the early 2000s, Steve achieved eBay Power Seller status which propelled him to become a founding partner of VisionPros.com, a contact lens and eyewear retailer. Four years later through a successful exit from that startup, he embarked on his next journey into digital strategy for direct-to-consumer brands.

Currently, Steve is a Senior Merchant Success Manager at Shopify, where he helps brands to identify, navigate and accelerate growth online and in-store.

To maintain his competitive edge, Steve also hosts the top-rated twice-weekly podcast eCommerce Fastlane. He interviews Shopify Partners and subject matter experts who share the latest marketing strategy, tactics, platforms, and must-have apps, that assist Shopify-powered brands to improve efficiencies, profitably grow revenue and to build lifetime customer loyalty.

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