The customer experience continues to be an important factor in garnering repeat business, higher lifetime value, and creating brand loyalty. Online experiences are even more important than ever with 76% of consumers say they view this experience as the true test of how much a company values them (Hubspot).
Here’s a look at some of the key trends and strategies E-commerce brands should be aware of when competing for more customers in a competitive landscape.
Turning New Visitors into Repeat Purchasers is Crucial
This may be stating the obvious, but on average, 23.2% of new visitors will return at some point according to a new study by Monetate. Most will come back within a week of their initial visit meaning of those 23.2% of new visitors who return at some point, approximately 69% (or 16% overall) will return within 7 days.
Also not surprising, the most loyal shoppers (those with a history of multiple purchases) are not only the most likely to return (95% will) but also the most likely to do so quickly. In fact, it only takes 1 day until 50% of this segment returns at least once.
This spells an opportunity to re-engage about 30% of returning shoppers through direct outreach campaigns.
Most Loyal Shoppers Are Worth 5X More Than First-Time Purchasers
On a revenue-per-session basis, customers with a history of multiple purchases spend more than 5 times as much as new shoppers ($10.67 vs. $1.73). Loyal customers also convert at rates more than 5 times higher than new shoppers (8.55% vs. 1.6%) and their add-to-cart rates are more than 4 times higher (23.15% vs. 5.29%).
Monetate’s analysis shows that add-to-cart rates, conversion rates, and revenue-per-session are all much higher when going from a new shopper’s initial to a return visit. Revenue per session increases from about $1.75 to more than $3. In large part, Monetate’s research that this is due to the behavioral data e-commerce brands gather from the initial visit and then use to personalize return visits.
Personalized Emails Drive Repeat Visitors
Email drives the highest percentage of repeat visitors to a site. Almost 70% of shoppers who initially visit a site from an email return within a 60-day window, compared to 48% who initially visit from social media and 39% who initially visit from a search.
Almost half (48%) of shoppers who initially visit a site from an email return within 7 days, compared to 33% who are initially referred from social media and 27% from search.
Approximately 27% of consumers stated that it is “critical” that brands make their shopping experiences individualized, and 55% said that it is “important.” This means that for 8 in 10 shoppers, personalization is important.
As far as the types of personalization eCommerce brands should implement include customized offers – the majority of consumers want to be rewarded with highly relevant offers (77%). Also important are being remembered (60%), feeling listened to / understood (59%), and feeling in control / opting in (57%).
Additional ways businesses are using data to create personalized experiences include incorporating lookalike advertising engines (87%), in-store or customer service clienteling tied to digital channel behavior (83%), and dynamic content creation/promotion generator (75%).
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