As a savvy marketer, you know that driving repeat purchases from existing customers is far more cost-effective than constantly acquiring new ones. But in today‘s competitive landscape with endless consumer choices, brand loyalty seems to be a dying concept.
In fact, 43% of customers spend more money on brands they‘re loyal to – which means increasing retention rates is mission-critical for sustainable growth. And even a 5% boost in retention can increase profits by 25-95%.
So how do you combat declining loyalty and turn one-time buyers into lifelong brand advocates? Here are 14 data-backed, expert-tested strategies to supercharge your repeat purchase rates and retain more customers.
1. Provide Delightful, Proactive Customer Service
Customer service isn‘t just about handling complaints – it‘s one of your strongest tools for driving retention. 90% of Americans use customer service as a deciding factor in whether to do business with a company. And after more than one bad experience, around 80% of consumers say they would rather do business with a competitor.
To delight customers into coming back again and again:
- Respond to inquiries quickly (ideally within a few hours)
- Offer multichannel support (phone, email, live chat, social, etc.)
- Proactively reach out post-purchase to gather feedback
- Follow up to ensure customer satisfaction after resolving issues
- Provide 24/7 support, or as close to it as possible
- Empower service reps to go "above and beyond" with special gestures
For example, web hosting company Zapier has a dedicated Customer Love team that:
- Checks in with every new customer after a week to see how setup is going
- Collects feature requests and passes them to the product team
- Sends handwritten holiday and birthday cards
- Spotlights customers and shares their success stories
This proactive, personal approach helps Zapier achieve an impressive 60%+ repeat purchase rate.
2. Launch a Value-Packed Loyalty Rewards Program
Loyalty programs give customers a compelling reason to keep choosing your brand over competitors. And they work – 84% of consumers say they‘re more likely to stick with a brand that offers a loyalty program.
But slapping together a generic "earn 1 point per $1 spent" program won‘t cut it. Top-performing programs offer a variety of valuable rewards, like:
- Early access to sales and new products
- Free shipping or returns
- Exclusive discounts and coupons
- Free gifts with purchase
- VIP experiences and events
- Charitable donations
Case in point: The North Face‘s VIPeak program rewards purchases and other behaviors like leaving product reviews or attending events. Members get access to limited-edition gear, adventure travel, mountain athlete meet and greets, and non-profit partnerships.
Experiment with different rewards to see what best motivates your customers. And make sure there are enticing benefits at every tier to encourage more spending – not just at the highest levels.
3. Harness the Power of Personalized Marketing
Consumers today expect far more than just "[fname]" in a marketing email. They want highly targeted, relevant content and offers tailored to their individual needs and interests. Case in point:
- 91% of consumers say they‘re more likely to shop with brands who recognize, remember, and provide relevant offers and recommendations.
- 72% of consumers in 2019 only engaged with marketing messages that are customized to their specific interests.
- 80% of companies report seeing an uplift since implementing personalization.
Segment your customers and tailor your marketing touches based on factors like:
- Demographics (age, gender, job title, etc.)
- Past purchase behavior and product preferences
- Email or website browsing behavior
- Stage of the customer lifecycle
- Loyalty program tier
Then use that intel to fuel personalized touches like:
- Product recommendations based on past purchases or real-time behavior
- Replenishment reminders when a customer is likely to run out of an item
- Cross-sell and upsell suggestions based on related items
- Special occasion and holiday offers most relevant to the individual
- Custom content and advice based on their known interests and needs
For example, Dollar Shave Club sends this highly personalized replenishment email reminding customers to stock up on their favorite items:
Not only is this a helpful, timely reminder, but it also suggests related products the customer might need based on past purchase history.
4. Nail the Post-Purchase Experience and Support
Many brands make the mistake of treating customers as an afterthought once they‘ve made a purchase. But the post-purchase experience is a critical window of opportunity to turn a one-time buyer into a loyal, repeat customer.
Some post-purchase experience best practices:
- Send order confirmation emails with a sincere thank you message
- Provide proactive customer service to handle any issues swiftly
- Send timely order status and shipping confirmations
- Follow up post-delivery to ensure satisfaction and gather feedback
- Include bonus gifts, samples or coupons with their delivery
- Make returns/exchanges as easy and simple as possible
- Create useful product tutorials, FAQs or how-to content
- Invite customers to join your loyalty or referral programs
- Continue to nurture customers with personalized content and offers
The now-iconic ecommerce mattress brand Casper goes the extra mile to surprise and delight customers post-purchase. They include a handwritten thank you card and bonus sleep masks with each order. Their delivery confirmation email contains custom warranty info and care instructions. And their #linkinprofile Instagram content acts as ongoing sleep education for customers.
By optimizing each post-purchase touchpoint, you make customers feel valued and equip them with everything needed to succeed with your product – increasing the chances they‘ll purchase again.
5. Recover Lost Revenue with Personalized Abandoned Cart Emails
The average documented online shopping cart abandonment rate is 69.57% – meaning there‘s a ton of lost revenue languishing in checkouts.
But all hope isn‘t lost. You can recover 10-30% of that potential revenue by sending persuasive abandoned cart emails. Especially when you personalize those emails based on the items left behind and the customer‘s history with your brand.
For example, check out this great abandoned cart email from Brooklinen:
It showcases the exact product the shopper left behind, includes glowing customer reviews for social proof, offers a time-sensitive discount, and even adds a touch of humor. The result? A 300% increase in revenue from their abandoned cart emails.
Other abandoned cart optimization tips:
- Send a series of 2-3 emails to stay top of mind
- Test sending your first email 1-2 hours after cart abandonment
- Emphasize scarcity/urgency (low stock, limited time discounts, etc.)
- Include eye-catching product images of abandoned items
- Offer free shipping or returns to alleviate hesitation
- Provide one-click access to 24/7 live customer support
6. Offer Frictionless Reordering and Subscriptions
The easier you make it for customers to reorder, the more likely they‘ll become repeat purchasers. Consider these stats:
- 80% of American consumers say that after completing a first purchase, they are more likely to place a second-order if the company offers an easy way to do so.
- 41% of US revenue comes from repeat purchasers, rather than first-time buyers.
- 64% of millennials and 54% of Gen Xers are more willing to become subscribers than make a one-off purchase.
Some ways to make repurchasing frictionless:
- Offer a subscribe and save model for regularly purchased items
- Enable easy reordering with one-click "Buy Again" options
- Integrate with mobile wallet platforms for one-tap checkout
- Provide multiple convenient delivery speeds and options
- Securely store customer payment info and mailing addresses
- Send replenishment reminder emails when a customer is likely to run low
And don‘t be afraid to incentivize recurring purchases. 69% of people say the most enticing reason to join a brand loyalty program is to earn points with every purchase that translates into some type of reward.
7. Create a Referral Program to Turn Customers into Advocates
Word of mouth is one of the most powerful marketing tools for driving revenue. 92% of people trust recommendations from friends and family over any other type of advertising.
Formalizing your word of mouth efforts with a referral program incentivizes existing customers to spread the word about your brand. And referred customers are more likely to buy from you and refer others, creating a snowball effect.
Take women‘s razor brand Billie. Their referral program rewards advocates with $10 off for each friend they refer. And the referred friends also get 20% off their purchase. It‘s a win-win that‘s helped Billie achieve over 100,000 active subscribers in just a few years.
For best results, make your referral program:
- Easy to find, join, and share
- Rewarding for both the advocate and referred friend
- Exciting through gamification, bonus rewards, and social sharing
- Integrated with your loyalty program so rewards stack
- Promoted everywhere (website, newsletters, social, packaging, etc.)
8. Gather and Implement Customer Feedback Regularly
No matter how amazing your business is, you‘ll always have customer churn. But you can reduce that churn by continually gathering feedback and improving the customer experience.
Some proven feedback collection methods:
- Net promoter score (NPS) surveys
- Post-purchase surveys sent via email
- Customer interviews and focus groups
- User experience (UX) testing
- Social media listening
- Review mining on sites like Google, Facebook, and Yelp
But collecting feedback isn‘t enough – you have to act on it too. Let customers know when you implement their suggestions. Share regular updates on your feedback-driven improvements. Showing customers that you value their input and use it to provide a better experience will boost loyalty and retention.
9. Leverage Social Proof from Existing Customers
Your existing, loyal customers are a goldmine of social proof you can use in your retention marketing. 87% of consumers say social proof like reviews and testimonials impact their purchasing decisions.
Some powerful ways to leverage social proof:
- Highlight customer transformations and before-and-afters
- Showcase user-generated content (UGC) from social media
- Feature video testimonials and case studies
- Display real-time data like "15 people bought in the last hour"
- Add star-ratings, number of reviews, and review snippets to key pages
- Integrate positive reviews into abandoned cart and post-purchase emails
For example, skincare brand Glossier showcases UGC from Instagram throughout their marketing – from email to product pages:
This social proof helps build trust and confidence for new customers while reminding existing ones why they love the brand.
10. Boost Average Order Value and Purchase Frequency
Increasing your average order value (AOV) and purchase frequency can have an exponential effect on customer lifetime value and retention.
Some proven strategies:
- Upsell and cross-sell related products during checkout
- Offer volume discounts or free gifts for higher spending tiers
- Provide bonus loyalty points for larger orders
- Use replenishment reminders to shorten time between purchases
- Bundle related products together or offer "starter kits"
- Promote automated, recurring subscription options
For example, sustainable toilet paper brand Who Gives A Crap boosts AOV with a discount ladder for purchases of 1, 2, 3, or 4 cases:
The larger the order size, the more the customer saves – a compelling offer that increases CLTV.
The Proof is in the Retention
Customer retention isn‘t a one-and-done initiative. It requires continual optimization of every touchpoint to create an experience that turns fair-weather shoppers into loyal superfans.
But by applying these 10 data-driven customer retention strategies, you‘ll boost repeat purchases and build an army of brand advocates – all while spending less on acquisition.
Remember, even a 5% increase in customer retention can boost profits up to 95%, making retention one of the highest-ROI marketing initiatives. So start implementing these tactics today and watch your repeat revenue soar.
