• Restaurant Marketing

Customer Repeat Rate: Loyal Customers are Most Profitable

by: Robin Johnston On: January 11, 2018
3 min read

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!

Restaurant Marketing FAQs

What is 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.

Learn More About Restaurant Marketing Here

What is WiFi Marketing?

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.

Learn More About WiFi Marketing Here

What is Restaurant Reputation Management?

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.

Learn More About Restaurant Reputation Management Here

How Does Bloom Identify and Bring Back Lost Customers?

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.

Learn More About Saving At-Risk Customers Here

SAVE TIME, INCREASE CUSTOMER LIFETIME VALUES, CREATE NEW CUSTOMERS

What our happy customers
are saying

Austin Eggleston
Bob Cross, Vice President of Operations
Ron Murray
Matt Thompson, Managing Partner
Jacqueline Martin

“I highly recommend restaurants, dental/medical offices, and other businesses look into Bloom Intelligence as 1) their marketing technology is very powerful and 2) their team is AWESOME. As a marketing agency, Bloom has helped several of our clients grow their businesses via building their database and re-targeting them at the right time. Thanks Again!”

Austin Eggleston

“We’re extremely pleased with the wealth of customer data that we’re able to gather, at a very attractive price.  In addition, we’re able to communicate our new product promotions by using  the landing page as a digital billboard.  A “no-brainer” for anyone working with limited Marketing $$.”

Bob Cross, Vice President of Operations

Atlanta Bread Company

“This is an integral part of our local store marketing program. We use the e-mails we collect to tell our existing customers about various promotions, specials and discounts, and the analytics tools are amazing at capturing and displaying smart device activity in and around our store.”

Ron Murray

Atlanta Bread Company

“They have always been attentive through whatever needs and questions we have.

They go above and beyond to make sure our team and customers stay connected while helping us with our marketing efforts.”

Matt Thompson, Managing Partner

Madison Social

“I am currently working with Bloom Intelligence with Matt Ronay and Edward Kennedy. They are great to work with, respond quickly, and provide great support for noth my company and my clients. I have used other WiFi platforms but never received this level of service. I was looking for a service that would make it easy for me to sell WiFi lead generation and analytics to my clients without a lot of problems. They have provided this above and beyond. I highly recommend them to any agency looking to add this type of program to your services.”

Jacqueline Martin

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