Creating A Value Proposition That Encourages Repeat Purchases

Improving 2nd purchase conversion by 5% can boost LTV by 20-35%. But most brands don't focus on this. Some tips to increase re-purchase (#5 is my fav) 👇 I looked at data for 100+ of our retail brands. On average: - First-time buyers have a 15-30% chance of returning - After a second purchase, that jumps to 60-70% Because of this snowball effect, little improvements to 2nd purchase conversion (+5%) can mean significant LTV jumps (+20-35%) Here's a handful of tactical things we've seen work. ----- 1. Focus on a shorter window than you think. Run your retention curves. Chart % of customers making 2nd purchase by month. You want to find where the cumulative repeat rate flattens out. - Most brands will be ~90 days. - Consumable brands (supps, food/bev, beauty) will be shorter (30 days). - Products w/ longer usage cycles may by 180 days or more. It all depends. Many brands make the mistake of using a 12-month window to look at churn. You've almost certainly lost that customer by then. Focus on a shorter window than you think. 2. Cross-category has a higher propensity of longterm retention ----- Cross-category buyers (almost always) have a higher LTV than single-cat buyers. - If they bought jeans, offer tops or accessories - If they bought skincare, suggest adjacent skus, not refills - If they bought a core product, introduce them to your specialty items Ps, you can segment your CRM and split test this. Just remember to tag your customers when measuring long-term LTV performance. ----- 3. Micro-commitments + Add Value! Before asking for a 2nd purchase, squeeze out small/easy commits: - Request product feedback/review (one question) - Offer style or usage guidance (post-purchase series) - Provide value-added content related to their purchase - Solve common problems w/ the products - Show how other customers use it Each small activity builds more engagment (and goodwill) w/ your brand. ----- 4. Implement a "Last Chance" campaign If your 2nd purchase window is 90 days, maybe that's Day 60. Deploy a specialized "almost lost" campaign. - Use language w/ mild urgency (avoid depsparation) - Include an unexpected benefit or small gift/gwp/ The offer MUST be better than what you'd give a first-time customer. ----- 5. Make the product better That's it. Just improve the product quality, and you'll see a natural jump in repurchase. It helps acquisition too (referral/WOM). By shifting a little focus from acquisition to that crucial second-purchase moment. What's your 2nd purchase "window"? 30, 60, 90 days? What are you doing to shrink that window? #ecommerce #customeranalytics #ltv

I remember years ago working with a coffee brand, and we discovered some fascinating insights from analyzing customer buying behavior. We had two types of purchases: subscriptions and one-time buys. When we dug into the data, we found a significant pattern. Only 18% of one-time buyers made a second purchase. But if they did, there was an 85% chance they’d order a third time, and the repeat order rate stayed high after that. This showed us a major bottleneck. The founder initially wanted to focus all incentives on attracting first-time buyers, but the data told a different story. We saw the value in driving that crucial second purchase. So, we overhauled our approach: 1. Revamped Fulfillment Kits: The first order kit included incentives for a second purchase. 2. Updated Email Campaigns: Emails were tailored to encourage a second buy. The results? We boosted the second purchase rate to nearly 30%, leading to a significant increase in overall sales and customer lifetime value (LTV). Even with pushing more people into that second order, we only saw a small dip in the number of people who went from a 2nd to a 3rd order, moving from 85% to 83%. This experience shows the power of slicing your data by cohorts to uncover bottlenecks and then addressing them directly. Sometimes, the biggest gains come from focusing on the steps beyond the initial sale.

Cold, hard fact: The sale is not the finish line. It’s just a checkpoint. Post-Q4, the real game begins. Brands often get so wrapped up in top-of-funnel strategies and new customer acquisition that they overlook what comes next: product adoption, customer satisfaction, and the groundwork for repeat purchases. 👉 Here's my no-nonsense guide to a winning post-purchase strategy: ● Tailor Product-Specific Emails: Each customer's journey should be unique. Send emails that resonate with their specific purchase. It's 2024; personalization is not optional. It's the norm. ● Beyond the Purchase Confirmation: A 'Thank You' email should be more than a receipt. It’s an opportunity to start building a relationship. Show your customers they’re valued, not just another sale. ● Encourage Immediate Product Adoption: Don’t just sell; educate. Provide how-tos, FAQs, and tips to ensure they not only use your product but love it. This is crucial, especially for products with a learning curve. ● Time Your Review Requests Smartly: Use tools like Yotpo Reviews. Request feedback after they’ve had time to experience your product. Genuine, timely reviews can boost your credibility and inform future customers. ● Dynamic Cross-Selling: Use dynamic feeds to recommend complementary products. This isn’t just upselling; it’s enhancing their experience with your brand. ● Focus on Lifetime Value: Introduce loyalty rewards and ongoing benefits. Remind them why sticking with your brand is a long-term win. ● Clear Returns Policy: Post-holiday returns are inevitable. Make it painless. Clear instructions and easy access to your returns policy can turn a potentially negative experience into a positive one. Your post-purchase strategy is what separates a one-time buyer from a lifelong customer. A lousy post-purchase experience? Say goodbye to repeat sales. It's brutal but true. The post-purchase journey is crucial for customer retention. It's your opportunity to shine and show your customers they've made the right choice

Customer sentiment is at its peak right after they've made their first purchase from you. Don't waste the opportunity! I've run hundreds of email strategy audits and one of the most common blunders I see is phoning in the post-purchase experience... → Basic, templated order confirmation → Basic, templated shipping notification → Good luck, I guess? That's like having an amazing first date, and then never calling the person again. A true "wtf?" moment for customers. Here's how to build a post-purchase email experience that turns one-time buyers into lifelong fans: 1. Immediately send an order confirmation email with all the order details. This puts their mind at ease right away. 2. Within 24 hours, send an email with shipping details, including tracking numbers and estimated arrival dates. This lets them know that product they're so excited about is on its way and allows them to manage their schedule. NOTE: This is where a lot of brands end things, which is a huge mistake. The anticipation period between "product sent" and "product arrived" is an amazing window for brand building. 3. Send a genuine thank you message, ideally from the founder. It should feel very personal, like a handwritten note. Show customers you value their support, not just their money. 4. Educate them on how to get the most out of their new product. This is a great spot for how-to guides, tutorials, recipes, or case studies. Help them envision what life looks like using the product while it's still en route. 5. Check in with them a few days after delivery. Make sure everything arrived okay. Ask how they're liking it so far. Share a little-known secret or address a frequently asked question. 6. Within 7-10 days of receiving the product, you can send an email that asks for a review/testimonial if they've had a positive experience. Provide direct contact information for your support team just in case things haven't gone as planned. 7. Two weeks post-delivery is a great time to recommend complementary products using more educational content. This encourages repeat purchases and boosts customer lifetime value. 8. Week 3 is the perfect time to ask for referrals or introduce a rewards/loyalty program to happy customers. Do you see what we did there? We took a bland, two-part sequence and expanded it to include 8-10 customer-focused touchpoints over the span of 30 days. You secured the purchase...nice job! But your work isn't done. In fact, it's just started. Look at post-purchase emails as the start of a conversation, not the end of a transaction. And just like any conversation, the words you choose can make the difference between "Let's do this again" and "Hmm...no thanks. I'll pass."