Mining customer data helps you engage them better. A repeat customer is more likely to visit sooner and try more products at your store, as compared to a new customer.
New vs. Repeat vs. Lost
The graph- new vs. repeat vs. lost helps you understand the number of customers your business has acquired, the number it has retained and the number that left the business.
A new customer may require more incentives to visit your store and turn into a repeat customer. A lost customer needs to be reminded and re-engaged, so the campaign should be more along the lines of missing the person/getting them back. However, when you are connecting with a repeat customer, you want them to feel appreciated.
But, how will you know your re-engagement strategies, if you don't know your customers at all. Apart from the frequency of their visits, you also need to know:
- Their preferences
- The day/time of the week they are likely to pay a visit
- Their spending habits
All this will together help you personalize the campaign and make them keep coming back to the store often.
It is easier to increase retention rate with a repeat customer. Check out how?
- The repeat customer is more likely to spend higher at your store. They already trust you, and have been shopping at your place for a while. This means, the spending volume is naturally higher in this case
- It is easier to promote your new products to a repeat customer. When you have a new customer or a lost one, they may not want to try the new product. As a result, you will notice a higher profit with newer products when you sell it to a repeat customer
- Acquisition can be expensive. There is no guarantee that the newly acquired customer will stay with your business for a longer time. As a result, you should ideally work on retaining your repeat customers.
The day-part understanding is equally important along with the analysis of your new vs repeat customers.
This is an important aspect that will help you know when your business goes through a least profitable day.
Example: You offer corporate lunches. Your super busy days are weekend lunch hours. However, you are super dull on remaining parts of the day as well as weekends. How can you make it more profitable?
When you have a day-part analysis, you know exactly how profitable is your business, when is the best time for your business and why. It will help you take actions so that the other days in the week are equally profitable. This analysis will ensure you don't have a dull day ever.