How to Increase Repeat Purchases and Boost Customer Loyalty

E-commerce might seem like a game of acquisition – funneling in as many new customers as possible. But here's the reality: repeat customers are the backbone of every successful e-commerce business. They not only spend more over time but also require less marketing effort to win over. According to Bain & Co., by the 10th purchase, a customer spends 80% more with a brand compared to their first transaction. If you're not incentivizing repeat purchases, you're leaving money on the table. 

This article explores actionable strategies to encourage repeat purchases, measure success, and build a loyal customer base that drives sustainable growth. Let's dive in.

Understanding Repeat Purchase Behavior

A repeat purchase occurs when a customer comes back to your store after their initial purchase to buy again. Unlike one-time buyers, repeat customers are more engaged and invested in your brand. They don’t just care about the product but the experience, the values, and the service you offer.

But why are repeat purchases so important?

Why Repeat Purchases Matter

• Higher Revenue and CLV: Repeat customers contribute 41% of total online revenue in the U.S., even though they account for just 8% of all customers. That’s because they spend more and are less price-sensitive over time. 

• Sustainable Growth: Building a base of loyal, repeat customers ensures a predictable revenue stream and reduces reliance on marketing to attract new buyers. 

• Efficient Marketing: Converting an existing customer is 60–70% more likely to happen than acquiring a new one (5–20%).

Now, the burning question is: how do you get customers to come back for more?

Actionable Strategies to Increase Repeat Purchases 

1. Personalization is the Key 

Tailored experiences make customers feel valued and understood. By using customer data, you can offer personalized product recommendations, discounts, and curated emails that match their preferences. 

• Example: Amazon uses customer browsing and purchasing history to recommend similar or complementary products, creating a seamless and personalized shopping experience. 

• Bonus: Include a personalized thank-you message or exclusive offers in post-purchase emails to leave a lasting impression. 

2. Build a Loyalty Program 

A well-executed loyalty program encourages repeat purchases by rewarding customers for every transaction or referral. 

• Example: Starbucks’ Rewards program is an industry benchmark. Customers earn stars for each purchase, which can be redeemed for free drinks, encouraging them to choose Starbucks over competitors. 

• Best Practice:

• Offer tiered benefits (e.g., discounts, VIP perks, or exclusive products) to motivate customers to reach higher levels.

• Use tools like Lootly to set up an automated loyalty program with ease.

3. Deliver Exceptional Customer Service 

When things go wrong (and they will), how you handle the situation can either create lifelong customers or drive them away. Providing top-notch customer support builds trust, one of the main drivers of loyalty. 

• Real-World Example:

• Zappos is renowned for its unparalleled customer service. Their team often goes above and beyond, such as sending handwritten notes or even free returns, leaving customers delighted and likely to return.

• Tips:

• Apologize genuinely when errors occur.

• Offer resolutions immediately and clearly.

• Be available on multiple communication channels like chat, email, or social media.

4. Leverage Email Marketing 

Email marketing isn’t dead – it’s a goldmine for driving repeat purchases if done right. Use it to keep your customers engaged and remind them about your brand. 

Here’s how to make the most of it:

1. Welcome Emails: Make a strong first impression and set expectations for new customers. 

2. Post-Purchase Follow-Ups: Share tips on how to use the purchased product or recommend complementary items. 

3. Abandoned Cart Reminders: Encourage customers to complete their purchases with discounts or free shipping. 

4. Win-Back Campaigns: Rekindle interest by offering exclusive deals to inactive customers. 

Pro Tip: Craft concise and impactful subject lines. For example, “Don’t miss this! Your next coffee is on us ☕.”

5. Engage with Customers Post-Purchase 

The customer experience shouldn’t end at checkout. Maintain engagement with them after their purchase to stay top-of-mind. 

• Create content, such as tutorials or tips on using the product they just bought. 

• Encourage users to share feedback through surveys or reviews. 

• Use social media to interact with customers who mention your brand.

6. Incorporate Feedback Loops 

Customer feedback is gold. Actively collect and use it to refine your offerings and show customers you value their opinions. 

• Use tools like Trustpilot or Google Reviews for testimonials. 

• Highlight changes that your business made based on customer input for a transparent and positive brand image. 

7. Launch Subscription Models 

Subscriptions are perfect for creating predictable revenue streams while locking in repeat customers. 

• Example:

• Dollar Shave Club sends razors and grooming essentials directly to subscribers’ doorsteps each month. Not only does this provide convenience, but it also creates brand loyalty.

• How-To:

• Offer flexible plans (monthly/annual).

• Include incentives such as discounted pricing for longer commitments.

Measuring Success: Understanding Repeat Purchase Metrics 

How do you know if your strategies are working? By tracking key metrics like your Repeat Purchase Rate (RPR) – the percentage of customers who return to buy again. 

The Repeat Purchase Rate formula is simple:

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RPR = (Number of Repeat Customers ÷ Total Customers) × 100

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What is a “good” repeat purchase rate? 

While this varies by industry, an RPR of 20–40% is considered healthy in e-commerce. 

Best Tools to Track Metrics:

• Google Analytics

• Shopify Reports

• Customer Relationship Management (CRM) Tools 

Takeaways for Creating Loyal Customers 

Driving repeat purchases isn’t a one-size-fits-all game. It requires a blend of strategies tailored to your audience’s behavior and preferences. 

From personalization and loyalty programs to exceptional customer service and subscription models, the opportunities to increase repeat purchases are endless. 

By focusing on retention, you’ll not only boost revenue but also cultivate relationships that transform casual buyers into lifetime customers. 

Need help taking the first steps?

Check out Post-purchase marketing strategies or explore tools like Lootly to craft your loyalty program.