Winning a new customer costs more than bringing back someone who has already bought. According to Bain & Company, increasing customer retention by just 5% can raise profits by 25–95%. The effect is especially visible in categories people buy regularly: cosmetics, children’s goods, pet food, household chemicals. But even gifts and clothes are happily bought again where the experience was convenient. Here are 5 proven ways to increase repeat sales.
1. Cumulative Discounts and Bonuses
The more a customer buys, the bigger their discount or bonus cashback. This motivates them to come back to you rather than to a competitor with the same price. Keep the rules simple: “5% off after 5,000 UAH of purchases” is clearer than a complex tier system.
2. Attention After the Purchase
Say thank you for the order: a short handwritten card in the parcel or a personal message is remembered better than any ad. After the purchase, send something useful: how to care for the product, how to use it, what goes well with it.
3. Replenishment Reminders
For products that run out, estimate how long they last and remind customers on time: cat food once a month, a water filter every two or three months. It saves the buyer time and brings you a repeat order.
4. Order Status Updates
Almost everyone reads “order packed”, “shipped” and “arrived at the branch” messages. They are a good opportunity to add a tip or an offer related to the product already bought.
5. Win Back Customers Who Have Not Bought for a While
Identify customers who have not purchased in several months and send them a personal offer: new arrivals in their favorite category, a birthday discount, a back-in-stock notice. Retargeting also works for site visitors who left without buying.
How to Measure Loyalty
- Repeat purchase rate — how many customers bought more than once;
- purchase frequency — how often a customer returns on average;
- average order value of regular customers compared with new ones;
- profit per customer after discounts and cost of goods.
How to Automate a Loyalty Program
You can manage discounts by hand while you have a few dozen customers. After that, it is better for the system to track each customer’s total purchases and update their discount or bonus balance automatically. In HugeProfit this is set up in customer discounts: a cumulative percentage discount based on purchase totals, or bonuses. The customer base is linked to sales, so you see purchase history and profit per customer — learn more on the CRM for online stores page.
FAQ
Which is better — a discount or bonuses?
A discount is simpler and clearer; bonuses motivate customers to return more strongly because accumulated points are meant to be spent. A cumulative discount is enough to start.
Will a loyalty program eat my margin?
Calculate the discount from the margin, not the price, and cap the maximum. A repeat sale without ad spend is usually more profitable than a new customer, even with a discount.
Read also: