If you are wondering what is a retention rate and why it is so important, you first need to understand the meaning of repeat business. Below you will find key definitions and strategies to help you nail the idea of retention rate.
Repeat business definition
Repeat business is a customer that makes a purchase on a website or app and returns to make additional purchases. Repeat business is a sign of a successful marketing campaign. Repeat business is someone who has been converted or re-converted, by your efforts. A customer who returns to make additional purchases is known as a repeat customer.
Retention rate definition
A retention rate is the percentage of visitors that return to the same website or return to the site within a specified period of time. It is a key performance indicator (KPI) for online marketers. The key to improving a website’s retention rate is to understand the visitors’ journey and identify the parts of the journey where improvements can be made. Understanding where visitors are dropping off helps to identify the right audience for a campaign.
How to increase repeat purchasing
When it comes to increasing repeat purchasing, there are a number of strategies that you can implement. One effective way to increase repeat purchases is to offer additional products or services that complement the original purchase. For example, an online store owner can add a second color to the product they are selling, which would result in a higher level of repeat purchases. Another way to increase repeat purchases is to personalize offers. If you want to increase the number of repeat purchases that are being made in your online store, you need to look at the parts of the customer journey where customers are dropping off. The most common parts of the journey are:
- Accessing the product or service
- Confirming the purchase
- Collecting the product or service
- Checkout
- After the checkout process
We create a detailed guide on how to increase repeat purchase rate that you should definitely check out!