Data shows that online retailers have an average repeat customer rate of 28.2%. However, this differs by industry:
Cosmetics: 25.9%
Apparel: 26%
Supplements: 29.1%
Coffee 29.6%
Pet products: 31.5%
According to Moran Khoubian, Senior Director, Ecosystem & Community at Yotpo, “Average ecommerce retention rates differ based on industry, size, and business model, but they typically sit somewhere between 15% to 30%.
“Because that’s a pretty wide range
We recommend brands measure retention by more belgium phone number list specific metrics, including customer lifetime value, repeat purchase rate, average order value, average purchase value of loyalty redeemers versus non-redeemers, and time to second purchase.”
Moran adds, “Shifting focus toward retention leads to improvement across these KPIs, leading to higher overall retention rates.”
Customer retention stats and trends Retention combats skyrocketing customer acquisition costs
There are new online stores popping up every day. Combine that with social media platforms pushing retailers into a pay-to-play model, and it’s no wonder why Ben Jabbawy, founder and CEO of Privy, says “Some brands are seeing ad costs go five times higher than [before] to drive the same amount of traffic.”
We’ve all seen the data: it’s five times cheaper to retain an existing customer than acquire a new one. By shifting your focus toward retention, you combat ever-increasing acquisition costs and increase profits.
Eli Weiss, senior director
CX and retention at Jones Road Beauty, says, “Up until securing customer data with advanced technologies recently, success of consumer companies was measured by how well they can use the Facebook ads arbitrage system. If their CAC was low, they could earn and churn customers to success, because each order was profitable.
became a highly competitive space, investors are looking at CAC to LTV ratios, and businesses are learning that retention is not just about squeezing more betting email list money from current companies, but rather a somewhat direct route to creating brand evangelists and superfans.”
