Your products have a few purposes but two important ones are:
- contribute to your Shopify store's profit
- satisfy the customer so they come back and buy again later
Satisfying the customer vs making the customer happy is a whole multiple-article discussion that we'll leave for now.
Getting a customer to come back and make a repeat purchase is an easy to understand goal that every store could agree with. If customers come back, you'll get more revenue but more importantly, you'll get even more profit as it's cheaper for repeat customers to order.
That means the second goal reinforces the first goal in the long-term.
More repeat orders with more profit.
Measuring how effective a product is at getting customers to come back is the job of the Repeat Purchase Rate. This metric compares your one-time to your repeat customers and gives you a percentage of customers who are repeat customers.
Repeat Customer Insights goes one step further and analyzes how the first products a customer orders influences their later behavior. When their first experience is great, the Repeat Purchase Rate will be high, and the product will accomplish its goals. A bad product experience and that customer might defect and go elsewhere next time.
Each product will have its own Repeat Purchase Rate and some will vary wildly. Even variants can vary and surprise you once you look at the data.
Segment your customers automatically with RFM
Segmenting your customers has always been touted as a powerful marketing tool but many stores avoid it because it can be time-consuming.
Repeat Customer Insights will automatically segment your entire customer base for you based on the valuable data Shopify has already collected for you. Ranging from 5 to 30 to over 125+ different segments using RFM and other models, you can pick how much power you want to harness.