How to Increase Repeat Sales and Generate More Recurring Revenue

How to Increase Repeat Sales and Generate More Recurring Revenue

Recurring customers is the dream of every eCommerce business. Though it seems to be an easy business objective, in reality, it is not.

Revenue from one-time customers is always less than that of recurring customers’ revenue. It does not mean the former kind of customer doesn’t hold a value for you because they also can turn into a regular/recurring buyer but their conversion rate will be much lower than recurring buyers.

When you think of eCommerce businesses, one of the things that comes to mind is repeat customers.

A lot of eCommerce entrepreneurs, especially newbies, don’t understand the importance of recurring sales and how to increase repeat sales. In this article, we will talk about how to increase your recurring sales and boost conversions effortlessly.

Why are repeat customers crucial for your business?

If you have a loyal customer base, then you can rest assured that there will always be customers coming in the door, even if the economy turns sour or if your competitors start offering similar products at lower prices.

The only thing that will truly stop repeat customers from coming back is if something goes wrong with their experience with your company—and even then, since they’ve been so loyal for so long, most likely they’ll give you another chance before taking their business elsewhere.

Here are some of the main reasons why repeat customers are so very important for all businesses –

  • Increased probability of future purchases

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  • Repeat customers cost less because you don’t have to spend thousands on acquisition all over again.
  • Repeat customers have a higher lifetime value (LTV)
  • They are likely to refer to new customers

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How can you get more recurring sales

1. Communicate and connect with your customers

One of the best ways to get more repeat sales is to deliver excellent customer service.

It’s no secret that when you provide a great experience for your customers, they’ll be more likely to come back and buy from you again.

The easiest way to do this? Provide top-notch support! You can have an amazing product, but if your customer doesn’t know how to use it or doesn’t know where to find support, they might not be able to get the most out of it. So make sure that you’re answering emails quickly and providing clear instructions on how to use your product.

Did you know that 89% of companies see customer experience as a key factor in driving customer loyalty and retention?

You can offer excellent customer service by including –

  • Live chat facility
  • Live demos and training (if needed)
  • Efficient and timely email support
  • WhatsApp support

2. Give them something of value for free

Another thing that can help increase repeat sales is offering incentives for first-time buyers. This can be anything from a sample of your product or service to a discount code to an exclusive deal. This will help build trust between you and your customers, which makes them more likely to buy from you again and again.

Did you know that 90% of online shoppers would purchase more often if given the option of free shipping?

And who doesn’t love freebies! Well, free goods are always a win-win strategy for both the consumer and the business. Take a look at the graph below –

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Giving something away just to get their attention is one thing, but if you want to get people to buy from you again and again, you need to give them more than that.

They need to feel like they’re getting a deal and that the value of what they’re receiving is greater than the cost of it.

3. Improve their experience with your product

If you want to get more repeat sales, it’s all about giving your customers a great experience. Over 86% of consumers claim that they would leave a brand after as few as two poor experiences. And 65% of all consumers find a positive experience with a brand to be more influential than great advertising.

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You can improve your customer experience in a few ways –

  • Make sure that you’re providing a service that people are actually interested in buying. If you’re selling shoes and no one is buying them, it might be time to rethink your product line.
  • Make sure that the purchase process is easy and painless. If they have to go through too many hoops or fill out too much paperwork to make a purchase, then they may decide not to buy again because of that hassle.
  • Follow up with them after they have received the product and used it. You might send them a thank-you note, or follow up with them via email to see how they liked the product.

4. Create customer loyalty programs

A loyalty program is a way for you to reward your customers for their continued business with you, and also encourage them to come back and buy more. This can be done through coupons, discounts, free shipping, or other perks that only loyal customers can access.

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Loyalty programs can improve your bottom line because they make it easier for you to market to your existing customer base and increase sales without having to spend as much on advertising or marketing campaigns.

To put it into perspective, an increase in loyalty of just 7% can increase the lifetime profits (when spread out amongst customers) by up to 85%

5. Make it a habit to request feedback from your current customers

It’s easy to take your current customers for granted. You send them a product or service, they pay you, and you get to move on to the next customer.

But if you want to maximize your profits, you need to make it a habit to request feedback from your current customers.

This will help you learn what they like about your product, what they wish it did that it doesn’t, and what they think could make it better. This information will help you improve your existing product and create new products that better serve their needs.

It’s also an opportunity to deepen the relationship between you and your customer. You can show them that you care about their satisfaction with the product and their experience with your company.

By requesting feedback, you’ll also build trust with your customers, making them more likely to refer them to friends who might be interested in buying from you too!

6. Leverage email marketing

The statistics show that replenishment emails have an average open rate of 50-60% and an average click rate of 40-50%.

Replenishment emails are also known as “re-engagement” or “re-targeting” campaigns. These terms mean that you send your customers emails based on their previous activity and recent purchases. This way, you remind them about items they have viewed or bought before, but didn’t purchase – yet!

Here are some tips to follow to add value to returning customers:

When a visitor signs up for your newsletter or gets added to your mailing list, send them a brief welcome email. This can be as simple as saying “Welcome!” and giving them the information they need so that they feel comfortable with your company right away. It’s also a good idea to let them know about any special promotions or events that may be coming up in the near future so that they’ll want to return again soon.

  • Send periodic newsletters

Once you have established trust with your subscribers, consider sending out newsletters on a regular basis (e.g., once per month). These can include information about new products or services, upcoming promotions, and events, or updates on how their orders are being processed. If your subscribers like what they see in these newsletters, they may come back for more!

  • Use a personal tone in all emails

Make sure that the language used in all of your emails is casual and friendly – not overly formal or corporate sounding. Keep it simple and conversational so that people will want to read it and respond positively to what you have written!

  • Create FOMO

Create a sense of urgency in your email marketing campaigns by saying that you’re only making x amount of products available for purchase and once they’re gone, they’re gone!

  • Send follow-up mails

Follow up with a customer after their first purchase. Send them an email thanking them for their order and offering a small discount on their next purchase. This will encourage them to come back or buy other products from you in the future.

You can also use this strategy for past purchases — if someone bought from you six months ago, send them an email asking if there’s anything else they need or want from your business now that they have experience with your products or services.

  • Use lifecycle messaging

If someone has already made one purchase from you, they are likely interested in hearing about other products or services that you offer. Use lifecycle messaging in your emails to target these customers with relevant information about new products, promotions, and more.

Bonus tip: you need to have a replenishment strategy in place

To increase your repeat sales and get more recurring sales, you need to have a replenishment strategy in place.

A replenishment strategy is one of the most effective ways to boost your recurring sales. This strategy is used by companies like Amazon, Walmart, and Costco.

This strategy involves doing some research on the products that your customers buy regularly. You can use this information to create an inventory system that allows you to stock up on those items when they’re on sale or clearance so that you can offer them at a lower price during their next purchase.

This way, when your customers come back for more of the same product they bought before, they’ll see it available at a lower price than what they paid last time around. This makes them feel like they’re getting a deal while also encouraging them to continue buying from you over and over again!

Also read: What Are Replenishment Emails, Why They Are Important And How To Set Them Up

Furthermore, you should also be offering a variety of different products that customers can buy again and again. You might be thinking, “But I already have this! I have lots of different options.” But you might be surprised at how many customers don’t return to buy the same thing again.

That’s why it’s important to make sure that you are offering products that are related to each other, but also offer something new.

For example, if someone buys a pair of shoes from you last month, they’re probably going to want a different pair next month. But maybe they also really like the shirt or socks they got along with those shoes—and now they’re ready for another purchase! By offering both types of products together, you’ll increase the likelihood that people will come back for more.

You can also try offering discounts on certain items when people buy others at full price. This will encourage them to buy more than one item at a time to get a discount!

With RetainIQ’s powerful replenishment email flow, you can easily increase your store conversions with just a few taps and clicks. Check it out today!

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