In the competitive world of eCommerce, driving sales is about more than just attracting new customers. Increasing the frequency with which your existing customers make purchases can be a game-changer for your bottom line — In fact, purchase frequency has been found to have the largest impact on top-line revenue (over 2x the impact compared to average order value (AOV))!
This blog post explores the concept of purchase frequency, how to calculate it, and provides actionable strategies eCommerce brands can employ to encourage customers to buy more often.
What is Purchase Frequency?
Purchase frequency is a metric that measures the average number of times a customer makes a purchase within a specific period. It's a crucial indicator of customer loyalty and engagement, providing insights into how often your customers return to buy your products or services. A higher purchase frequency indicates satisfied customers and a strong value proposition, while a lower frequency suggests areas for improvement in customer retention strategies.
How to Calculate Purchase Frequency
To calculate purchase frequency, you need two pieces of data: the number of orders placed within a given period and the number of unique customers who made those orders. The formula is simple:
Purchase Frequency=Total Number of Orders/Number of Unique Customers
For example, if your eCommerce store received 500 orders from 200 unique customers over a month, your purchase frequency for that month would be 500/200=2.5500/200=2.5. This means, on average, each customer made 2.5 purchases in the month.
Strategies to Increase Purchase Frequency
Increasing purchase frequency involves encouraging your customers to buy more often. Here are 25 strategies, with examples, to help eCommerce brands achieve this goal:
1. Implement Loyalty Programs
Loyalty programs are a powerful tool to encourage repeat purchases by rewarding customers for their continued patronage. By offering points, discounts, or exclusive benefits for every purchase, brands can create a compelling reason for customers to return.
Example: Sephora's Beauty Insider program rewards customers with points for every purchase, which can be redeemed for discounts or exclusive products. This encourages repeat purchases by adding value to every order.
Our research on user propensities found that loyalty programs are one of the largest indicators of user retention (Want to know your biggest retention indicators? Reach out!)
2. Personalized Marketing
91% of consumers are more likely to shop with brands that recognize, remember, and provide relevant offers and recommendations. By leveraging customer data, such as past purchases, browsing behavior, and preferences, eCommerce brands can tailor their marketing efforts to individual customers.
Example: Amazon's recommendation engine personalizes product suggestions based on past purchases and browsing behavior, making it easier for customers to find products they're likely to buy again.
One of the easiest ways to implement personalization in your app is with recommender-driven messaging. Click here to see how Aampe's recommender helps brands increase their purchase events by over 250%!)
3. Email Reminders
Email reminders are a simple yet effective way to nudge customers toward making another purchase. By analyzing purchase history, brands can predict when a customer is likely to need a product refill or might be interested in purchasing again.
Example: Chewy sends email reminders and offers auto-refills to pet owners when it's time to reorder food or medicine, simplifying the repurchase process.
4. Subscription Services
Subscription models offer a convenient solution for both businesses and consumers by ensuring regular purchases over time. This model not only secures a steady revenue stream for the brand but also locks in customer loyalty, as subscribers are less likely to switch to competing brands once they've subscribed.
Example: Dollar Shave Club offers razors and grooming products on a subscription basis, ensuring regular purchases and customer retention.
5. Exclusive Deals for Repeat Customers
Offering exclusive deals to repeat customers is a strategic way to show appreciation and encourage loyalty. This approach not only rewards loyal customers but also incentivizes them to continue shopping with the brand. Exclusive deals can create a sense of exclusivity and belonging, making customers more likely to make repeat purchases and become brand advocates.
Example: ASOS offers exclusive discounts to customers who have made multiple purchases in the past, incentivizing them to continue shopping.
Want to know which discount strategy is the most effective? We wrote about that here.
6. Utilize Customer Feedback
Actively seeking and utilizing customer feedback is a critical strategy for enhancing product offerings and customer experience, leading to increased purchase frequency. By listening to what customers have to say about their products and services, eCommerce brands can make informed improvements, directly addressing the needs and concerns of their audience.
Example: Zappos actively seeks customer feedback on products and services (and is generally incredibly responsive to customers), using this information to improve offerings and encourage repeat business. This responsiveness not only resolves immediate issues but also builds a loyal customer base that feels valued and understood, making them more likely to return for future purchases.
Want to collect customer feedback through your outgoing marketing messaging? Reach out and we'll show you how!
7. Referral Programs
Referral programs incentivize existing customers to bring in new ones by offering them rewards, such as discounts, free products, or other incentives. This strategy leverages the trust and social networks of satisfied customers to expand the customer base while also increasing the purchase frequency of those making referrals.
Example: Dropbox offers additional storage space for both the referrer and the referee, encouraging existing users to bring in new ones.
8. Flash Sales
Flash sales create a sense of urgency that can drive immediate increases in purchase frequency. By offering products or services at significantly discounted rates for a limited time, brands can compel customers to make quick decisions and act on offers.
Example: Wayfair frequently hosts flash sales, offering steep discounts on furniture and home decor for a short period. This not only encourages immediate purchases from existing customers but also attracts new customers who are looking for deals, thereby boosting overall sales volume and customer engagement
Want to know which discount percentage is the most effective? See our findings here!
9. Bundle Offers
Bundling products together at a discounted rate can encourage customers to make larger purchases than they initially intended, thereby increasing the average order value and purchase frequency. This strategy not only provides value to the customer but also encourages them to explore and purchase related products they might not have considered otherwise.
Example: Best Buy bundles related products at a discount, such as video game consoles with games, encouraging larger purchases.
Want to know what products to bundle? See how we use consumption sequences to know which products to recommend next.
10. Engage Users Through Social Media
Social media platforms are powerful tools for keeping your brand top-of-mind among your customer base. By regularly posting about new products, special offers, and engaging content, brands can maintain a constant presence in their customers' lives.
Example: Fashion Nova uses Instagram to feature new arrivals and exclusive deals, keeping the brand top-of-mind for followers. This continuous engagement not only helps in building a strong brand presence but also drives repeat visits to the website, increasing the likelihood of frequent purchases.
Don't forget to engage your customers on your other channels — like SMS, WhatsApp, and push notifications — as well!
Companies with strong omnichannel customer engagement strategies increase their customer retention by upwards of 56%.
11. Free Shipping Thresholds
Implementing free shipping thresholds is a strategic way to encourage customers to add more items to their carts to qualify for free shipping. This not only increases the average order value but also boosts purchase frequency as customers are more inclined to return to a store where they can save on shipping costs.
Example: Nike offers free shipping on orders over a certain amount, encouraging customers to add more items to their cart. This not only incentivizes larger purchases but also encourages customers to join their membership program, enhancing loyalty and repeat business.
12. VIP Clubs
Creating an exclusive VIP club for your most loyal customers can significantly increase purchase frequency by offering special perks and rewards that are not available to regular customers. This level of exclusivity and reward for loyalty encourages frequent purchases as customers strive to maintain or upgrade their membership status.
Example: Ulta Beauty's Platinum and Diamond tiers offer more points per dollar spent and exclusive perks, rewarding frequent shoppers.
13. Remarketing Campaigns
Remarketing campaigns target individuals who have previously visited your website but did not make a purchase. By displaying ads for products they viewed or added to their cart, you can encourage them to return and complete their purchase. This strategy not only increases the conversion rate but also the frequency of purchases, as it keeps your brand and products top-of-mind.
Example: Target uses remarketing ads to show customers products they viewed but didn't purchase, encouraging them to come back and buy.
Don't forget to set up browse abandonment and cart abandonment campaigns as well!
14. Regularly Introduce New Products
Constantly refreshing your product lineup keeps your brand exciting and gives customers a reason to come back. This approach not only helps in attracting new customers but also in retaining existing ones who are looking forward to the latest innovations.
Example: Apple's regular release of new technology keeps customers coming back to see what's new and make repeat purchases.
15. Customer Education
Providing valuable content that educates your customers about your products or related topics can boost engagement and encourage repeat visits.
Example: Home Depot offers DIY workshops and online tutorials, helping customers feel confident in purchasing products for their projects. This educational approach nurtures a relationship with customers, making them more likely to return for both information and purchases.
Don't forget to include educational content in your marketing messaging as well! Offering educational content in addition to standard lifecycle messaging increases conversions while preserving margins.
16. Event Marketing
Hosting or participating in events allows brands to engage directly with their audience, creating memorable experiences that can drive loyalty and repeat purchases.
Example: Shopify hosts pop-up events and workshops for entrepreneurs, building community and encouraging platform use. These events not only help in building a community around the Shopify brand but also encourage attendees to utilize Shopify's platform and services more frequently, reinforcing their commitment to their customers' success.
17. Upselling and Cross-Selling
Recommending related or premium products at the point of purchase can significantly increase the value of each transaction and encourage customers to come back for more.
Example: Booking.com suggests add-ons like car rentals and experiences when booking accommodation, increasing the value of each purchase. These suggestions are tailored to enhance the customer's trip, making the platform a one-stop-shop for travel needs and encouraging them to use Booking.com for future travel planning.
Don't forget to include product and content recommendations in your outgoing marketing messaging as well (not only after a purchase).
18. Use an App
Apps can make the shopping experience more accessible and convenient, encouraging customers to make purchases more frequently.
Example: Starbucks' mobile app makes it easy for customers to place orders, pay, and earn rewards, increasing purchase frequency. The convenience of ordering ahead and skipping the line not only improves the customer experience but also fosters brand loyalty and encourages customers to choose Starbucks more often for their coffee needs.
19. Easy Reorder Features
Features that allow customers to easily reorder their favorite products can significantly reduce friction in the purchasing process.
Example: Amazon's "Buy Again" feature simplifies the repurchase process for frequently ordered items. By streamlining the reorder process, Amazon ensures that customers have a hassle-free shopping experience, encouraging them to return whenever they need to restock on essentials.
20. Offer Exceptional Customer Support
Providing top-notch customer support can turn one-time buyers into loyal customers.
Example: Zappos is renowned for its customer service, encouraging loyalty and repeat purchases. By prioritizing customer satisfaction above all else, Zappos not only resolves immediate issues but also builds a strong emotional connection with customers. This dedication to service encourages customers to return, knowing they'll have a positive experience with every purchase.
21. Provide Multiple Payment Options
Offering a variety of payment options caters to the preferences of a broader customer base, removing barriers to purchase.
Example: Etsy supports various payment methods, including credit cards, PayPal, and Etsy Gift Cards, catering to customer preferences. By accommodating different payment preferences, Etsy not only enhances the shopping experience but also encourages repeat purchases, as customers appreciate the flexibility and ease of transaction.
22. Tailor Offers to Seasonal Events
Seasonal promotions and products can significantly boost purchase frequency by tapping into the consumer's desire to engage with timely events. These timely offers create a sense of urgency and relevance, encouraging customers to make purchases while they can, and to return for new products and deals throughout the year.
Example: Bath & Body Works tailors promotions and products to seasons and holidays, encouraging customers to make purchases related to the event.
23. Gamification
Incorporating elements of gamification into the shopping experience can make engagement more enjoyable and rewarding.
Example: Nike Run Club app uses gamification to engage users, awarding achievements for running milestones, which can translate into product loyalty. This not only motivates users to stay active but also subtly encourages them to engage with Nike products and the brand. Gamification creates a fun, interactive environment that can increase customer loyalty and encourage frequent interactions with the brand, including purchases.
24. Community Building
Creating a sense of community among customers fosters a deeper connection with the brand and encourages repeat engagement.
Example: Lululemon hosts free yoga classes, building a community around the brand and encouraging participants to make repeat purchases. Participants not only become more loyal to Lululemon for providing these experiences but are also more likely to make repeat purchases, seeing the brand as a contributor to their lifestyle and wellbeing, beyond just a retailer.
25. Feedback Loops
Actively seeking and acting on customer feedback demonstrates a brand's commitment to continuous improvement.
Example: Slack actively seeks user feedback through various channels, using it to improve the platform and encourage ongoing engagement. Establishing such feedback loops not only helps in refining the product to better meet customer needs but also builds a relationship of trust and respect. Customers who feel heard are more likely to remain engaged with the brand, contributing to higher purchase frequency as they see the tangible results of their feedback.
Also, be sure your customer engagement software learns from your past customer interactions to drive your future interactions!
Conclusion
Increasing purchase frequency is vital for the growth and sustainability of eCommerce brands. By implementing strategies that focus on customer engagement, personalization, and value addition, businesses can encourage their customers to make purchases more frequently. Each of the strategies mentioned above has the potential to boost purchase frequency, but their effectiveness will vary based on your business model, customer base, and product offering. The key is to test, measure, and refine your approach to find what works best for your brand.
Have any questions or need support?
Smash that big orange button, below.
