What is a repeat purchase?

Repeat purchase is the act of making multiple purchases from the same brand. It is generally seen as an indication of customer satisfaction and growing customer loyalty, as they have chosen to return to a business and buy their product again.

Why are repeat purchases important?

Repeat purchases are vital to the long-term growth of brands because:

  • They foster customer loyalty and generate a higher return on investment than marketing to new customers.
  • Customer acquisition costs, such as advertising and promotions, are typically high. Driving repeat purchases is often more cost-effective than acquiring a new one.
  • They lead to increased customer lifetime value as customers become more engaged with the brand over time.

By driving repeat purchases, brands can hedge against rising customer acquisition costs, providing the profit margins they need to scale sustainably.

Why do customers make repeat purchases?

Some of the key driving factors behind repeat purchases include:

  • Taking advantage of loyalty programs, such as rewards and exclusive offers.
  • Experiencing greater convenience in their shopping experience, such as faster checkout or easy access to their order history.
  • Getting better pricing or discounts, such as sale items or special promotions.
  • Supporting the brand they identify with, such as feeling connected to a brand’s values and mission.

Tactics for increasing repeat purchases

Tried and tested techniques for incentivizing customers towards repeat purchases include:

  • Offering meaningful discounts and rewards to encourage customers to come back.
  • Creating a seamless, frictionless customer experience from browse to purchase to delivery, so customers will be more likely to return.
  • Leveraging data and analytics tools to better understand customer needs and preferences, allowing brands to tailor offers for repeat purchases.
  • Utilizing marketing automation tools such as automated emails and SMS messages to stay connected with customers and deliver personalized engagements at scale.
  • Segmenting customers based on purchase history, level of activity and likelihood of churning, and set up targeted email flows such as replenishment, cross-sell and win-back to tempt them towards another purchase.

Driving repeat purchase with Emarsys

Emarsys helps leading brands like PUMA, Pizza Hut and Nike to connect their sales, product and customer data, creating better customer experiences that drive repeat purchases and increase lifetime value.