It's hard for a brand owner to know which products to promote to retain the acquired new customers
For a sustainable business, it's important that you keep and promote the products that not only sell well in the first place but also turns your customers into repeat buyers
Understanding the analysis
The tabular view has the following key variables -
First-order product - Which product was there in the first order of a new customer
New customers - How many new customers were acquired on a particular product
Re-purchasers - How many of those new customers made at least a 2nd purchase
% age of re-purchasers who purchased anything from the website
% age of new customers purchased the same product again
The scatter plot helps you quickly identify the products as per two variables - new customers and Repeat Buyers %.
Some Use cases
Promote the products with a higher repeat rate
The products with high percentage of repurchasers signify that the product is being liked by the new customers and is converting new customers into repeat buyers. Hence, promote these products more to increase the customer lifetime value
Kill products with low value and low repeat rate / Improve Product quality
We recommend reducing advertising spends(or efforts) on products that have low AOV (average order value) and have less percentage of repeat buyers as these products lowers the customer lifetime value and profitability. A product repurchase report can also help store owners identify product quality issues. If a product has a low repurchase rate, it may be an indication that customers are not satisfied with the product quality or performance.
Identify opportunities for cross-selling
By analysing the repurchase report of different products, We can identify opportunities for cross-selling. For example, if a customer frequently repurchases a certain product, store owners can recommend other products that complement that product. This can increase the average order value and drive more sales.
Optimise product offerings
By looking at which product types breakdown, We can identify which product types have a high repurchase rate and focus on offering more products within that category. Additionally, we can identify product types that have a low repurchase rate and either improve them or remove them from their product catalogue.
Determine customer loyalty
By analysing how many customers repurchase the same product or any product, We can identify customers who are loyal to their brand and those who are not. This information can be used to create targeted marketing campaigns to retain loyal customers and win back those who are not as loyal.
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