RJ Metric surveyed 176 eCommerce retailers and 18 million customers to uncover insights on how eCommerce customers behave. The survey found that after a customer has placed an initial order, that same customer has a 32% chance of returning to your store to place another order.
If that same customer comes back to make a second purchase, there is 54% chance they will place another purchase.
See where we’re going with this?
As the customer keeps returning, the percentage of placing another order continues to increase.
Repeat Order Probability
As the survey concluded, if you can proactively entice existing customers to return to your store, with proper eCommerce marketing strategy and tactics, the potential customer lifetime value can skyrocket due to increased orders and a longer average lifetime.
If you wish to calculate the repeat order probability for your store, below is an example of calculating the repeat order probability of a customer making a second order at your store.
- # of customers who placed 1 order: 1,000
- # of customers who placed 2 orders: 350
- # of customers who place 3 orders: 130
In this example, the repeat order probability of customers who have placed one order in their lifetime to placing a second order is: (350 + 130) / (350+130+1,000) = 32.43%
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