3 Stories- Boost Repeat Purchase Rate

[3 Tips] How to Increase Your Repeat Purchase Rate

Allan Caeg 3 Stories

Technology entrepreneur, I know that customer satisfaction is one of your biggest motivations.

Fortunately, delivering it is also great for business!

For this week’s 3 tips, our theme is about boosting your repeat purchase rate.

After investing in brand building and customer acquisition, you want to maximize your existing audience.

Watch the video now:

Transcript:

3 Stories: How to Increase Your Repeat Purchase Rate

This is for technology entrepreneurs who care!

You want to make customers successful.

You’re not just here to hack your way around closing some sales.

This is for business operators who have calculated their CAC (Customer Acquisition Costs)

There’s a predictable marketing channel and effort.

You know what it takes to generate more customers.

At this good point in your business, you’re shifting focus towards customer loyalty.

You want to increase your Repeat Purchase Rate, making the most out of existing relationships.

Stay alert! You will get 3 actionable tips in the end.

Hello! I’m @AllanCaeg of NorthStories.io

Today, we’re discussing 3 hot stories about customer relationship management:

How to Craft the Perfect Post-Purchase Follow Up Sequence

How Billion-Dollar Companies Think Differently About Customer Relationships

Customer Acquisition IS Customer Retention (OR You’re Doing It Wrong…)

Story #1: How to Craft the Perfect Post-Purchase Follow Up Sequence

Thanks to Trent Vu for these 4 tips!

You probably love marketing automation.

It’s nice to visualize the entire funnel

… then design automation triggers that will send emails based on events.

Let’s talk about that moment when you need to fulfill your promise to the customer.

Right after their purchase, Trent suggests these 4 follow ups:

Order Confirmation

Product Education

Review Request Email

Replenishment Reminders

These are great tips as I need to be more consistent with these follow-ups.

You want to be systematic about asking for reviews, repeat purchase, and more.

By setting up this kind of automation, every customer would get the follow up sequence that they need.

Your 5-Minute Tip: Draw your post-purchase follow up sequence.

What does it currently look like?

Are you sending product tutorials to everyone?

Do you get to ask customer reviews after your customers should have tried the product?

After identifying your current follow up sequence, you will be in the position to improve it.

Story #2: How Billion-Dollar Companies Think Differently About Customer Relationships

Cheers to Daniel Marlin!

I often hear DigitalMarketer talking about the value of spending on customer acquisition.

It’s about getting your foot in the door.

Now, investing in getting your foot in the door only makes sense if you can expect returns.

Daniel reminds us how billion-dollar companies think about each customer differently.

Let’s say that a customer’s first purchase does not mean much profit.

That’s not the entire story!

How many repeat purchases are we expecting?

What are the margins for a customer’s 3-year stay with us?

Let’s say you sell a logo design service

… then later upsell to building their company website and their ecommerce property.

Looking at an entire customer’s lifetime, we can justify high acquisition costs.

If you’re playing the long game, the first purchase does not tell the whole story.

To make this viable, you have to optimize for making customers so happy that they’ll keep coming back.

Your 5-Minute Tip: Calculate your most recent customer’s lifetime value.

Acquired a customer today or last Tuesday?

Based on the current trend, how long do they usually stay?

Throughout their 2-year lifetime with you, how much would you earn?

By understanding your current CLTV expectation, you can allocate the right customer acquisition budget.

Story #3: Customer Acquisition IS Customer Retention (OR You’re Doing It Wrong…)

This is a powerful insight by J. Westenberg!

It reminded me of books I never read.

It reminded me of apps I barely used.

Or clothes I wore just once.

We have to acquire real customers.

For a while, you can get away with hacking sales here and there.

Let’s say you have great sales materials to close a $4 or $299 sale.

As a passionate entrepreneur, I know that you’re interested in the customer’s success and happiness.

You don’t just want to get so good at ‘tricking’ people into buying once.

When we design our products and customer acquisition flows, we need to look at the user’s success.

Your 5-Minute Tip: Brainstorm the milestone for your customer’s success.

If they buy again next month, that’s a good signal.

If they keep on actively using the product for a year, that’s a great signal.

For your product, you want to identify signs of success and happiness.

If you’re helping customers to launch a successful webinar, you want to monitor if they’ll get enough success to want to run a second or third webinar.

If you’re helping people to lose weight, you want to see if their progress in 3 months produce evidence that they’ll have to stick with your program.

There you have it!

Let’s do a recap of the 5-minute tips!

Draw your post-purchase follow up sequence.

Calculate your most recent customer’s lifetime value.

Brainstorm the milestone for your customer’s success.

Choose 1 that you will practice today!

Pledge your commitment! Tweet it to me: @AllanCaeg