Customer Repeat Rate: Loyal Customers are Most Profitable
If you’ve read our website or followed our blog, you’ll know that we love big data. By delivering high-quality insights, we can help you refine your sales and marketing strategies, driving your numbers ever higher. Of course, we know not everyone loves data as much as we do. There’s a lot of information out there, and using it effectively takes a little education and plenty of work.
Data speaks and, luckily, we are fluent in that language. So, today, we’ll be exploring one of the most profitable points of traffic analytics (and perhaps the most under-appreciated), the average customer repeat rate. Read on, to learn more about this metric, why it’s got so much potential for profit, and how you can use updated strategies to take advantage of it.
What Is Average Customer Repeat Rate?
Let’s start simply by looking at what the average customer repeat rate actually is. Our dashboard defines the customer repeat rate as “the average number of times that customers visited your location during a given time period.” Essentially, this data set will track who your repeat customers are and how often they do business with you before delivering an average that will help you determine your customer retention rating.
These numbers – and the customers they represent – are crucial to building a better customer experience and expanding the influence of your brand. So, if there’s one piece of advice we can give you, it’s this: focus on repeat customers and driving your average repeat customer rate higher. Why? Well, the numbers don’t lie. And data is nothing but numbers. Take a look at some of the reasons why repeat customers are the most profitable.
Repetition is the Key to Loyalty
Rule of thumb: if your average customer repeat rate goes up, you’re doing something right. Repeat customers are the backbone of any business, creating a reliable avenue for revenue and (hopefully) becoming promoters for your business along the way. Customer loyalty is a commodity all its own. Not to mention, repeat customers are cheaper to retain… Just take a look at the data on repeat customer conversions.
Higher Conversion Rates
Repeat customers are easier to sell to. They’ve already bought your product and interacted with your company, so there’s no need to win them over. In fact, according to Marketing Metrics by Paul Farris, a repeat customer has a 60%-70% chance of converting. This number is astronomical in comparison with the estimated 1%-3% average global conversion rate.
By focusing on repeat customers, you can spend less on advertising and conversion tactics and focus on building a better customer experience. If you make your existing customers happy, they’ll become your best source of advertisement.
Purchasing Power
Repeat customers also tend to spend more. It’s been estimated that repeat customers are responsible for generating up to 40% of a given business’ revenue. Not only that, but repeat customers spend more on average than a first-time buyer. Additionally, there is a direct correlation between how long a customer has been with you and how much they spend.
With this information in hand, it’s safe to say that repeat customers are crucial to the success of your business. Who knew?
Rewarding Repeat Customers
There’s nothing like a user-friendly customer experience that is personalized and rewarding. Think of the things that motivate your customers to do business with you again and again. Sure, you’ve got a great product, but in the age of Amazon what makes you stick out? Do you deliver exceptional customer service by following up on every sale? Do you offer a rewards program that encourages repeat purchases to earn exclusive discounts? Capture your customers’ loyalty with retention tools and watch that average customer repeat rate soar!
There you have it: everything you need to know about the customer repeat rate. It’s a pretty exciting tool on its own, but when used in conjunction with our other traffic analytics (First Time Visitor Return Rate, Lifetime Value of Customers, Churn Rate, etc.) you’ll have access to profound insights that will allow you to collect, analyze and react to the needs of your customers. Increase your customer frequency, revolutionize the way you market yourself, and watch your business grow with the help of Bloom Intelligence. Contact us to learn more!
FREQUENTLY ASKED QUESTIONS
Common Questions About Restaurant Marketing
Restaurant marketing is the process of getting people to visit your restaurants. Restaurant marketing creates loyalty, provides data to research, analytics, and allows restaurants to gain a better understanding of their ideal customer profile. It utilizes all customer channels: guest WiFi, website, social, rating sites, mobile apps, email, text, and advertising.
WiFi marketing is a marketing technique that uses guest WiFi to collect & clean customer data such as names, emails, phone numbers, customer behavior, and demographics. This data is used to personalize marketing campaigns to increase customer loyalty, build online reviews, and save at-risk customers. The performance of every campaign can be tracked down to the tangible ROI of a customer walking back in your door.
Restaurant reputation management is the process for restaurants to manage customer feedback and creating systems to improve customer experiences, passively build positive online reviews, and save at-risk customers. It is a very important aspect of running a successful restaurant business.
A restaurant customer data platform (CDP) is a unified software system that collects, consolidates, and activates guest data from multiple sources including WiFi networks, POS systems, online ordering platforms, reservation systems, websites, loyalty platforns, event platforms, and review sites. Unlike generic CDPs built for e-commerce or SaaS companies, restaurant CDPs are purpose-built to handle restaurant-specific data sources and create actionable guest intelligence that drives personalized marketing, operational improvements, and revenue growth automatically.
Bloom Intelligence uses machine learning to identify at-risk customers. When one is recognized, the system will send them a message with an incentive to get them to return and re-establish their visit pattern. Bloom users are seeing up to 37% of churning customers return.
Ready to Turn Your Guest Data Into Revenue?
Join 1,000+ restaurant locations using Bloom Intelligence to recover lost guests, automate marketing, and drive measurable revenue growth.
Keep Reading
View All Posts →8 in 10 Restaurant Guests Never Come Back. Here’s What That’s Costing You.
Key Takeaway Eight in ten restaurant guests who have ever visited your location have never returned, creating a measurable revenue...
Your Restaurant Reputation Management Software Only Does 10% of the Job. Here’s What It’s Missing.
Key Takeaway Most restaurant reputation management software only handles review responses. That's just 10% of the value your guest sentiment...
The 13x Guest: How Restaurant Data Analytics Reveals Your Most Valuable Customers
Key Takeaway Your most loyal restaurant guests spend 13 times more than first-time visitors — but most restaurants can't identify,...