Looking into the future. How does a customer’s first order affect his future purchases

After analyzing more than 1,000,000 online purchases, a very interesting pattern has been discovered, which allows us to predict how many purchases the client will make on your site in the future.

Scary statistics suggests that 62% of customers never make a second purchase on the same site. And only 16% of customers actually make more than 3 purchases from your site.

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Therefore, from a business point of view, it is very important to understand how customers behave when they first purchase and make every effort to get these customers back again.

So how can you understand whether a customer will return for a second purchase or is he lost for you forever?

FACT # 1: Customers who bought more than 1 product on the first order are more likely to buy a second time.

We analyzed more than 1 million online transactions over 2 years in completely different areas of online trading, from the fashion industry and gadgets to food and drinks ...

And the conclusion was one:

THAN MORE GOODS IN THE FIRST ORDER OF THE CUSTOMER - THE MORE PROBABLY THAT HE WILL BUY FROM YOU AGAIN!

The study showed that 50% of customers bought only one product, making their first order. At the same time, those who bought 2 or 3 goods at once are 36% more likely to make their second order.

Customers who bought 4-5 products at the first order are more likely to fill out a second order on the same site by 77%.

And those who bought 6 or more products at once, are TWO more likely to buy again on your site.

FACT # 2: Customers who bought more than 1 product on their first order are more likely to become PERMANENT BUYERS.

The analysis showed that customers who bought more than 1 product at the first order are more likely to become your regular customers (VIP customers).

For example, it turned out that if a customer bought only 1 product with the first order, then the probability that he will become a VIP customer is ONLY 1 to 17.

At the same time, if a client buys 2 goods, then this probability immediately increases by 50%, and if he buys 3 or more goods, then at once by 300%.

FACT # 3: The number of items in the first order determines the number of future sales orders.

Customers who bought more than 1 product at the first order are more likely to buy from you for a long time.

Customers who bought 2 or more products in the first order, make 7% more purchases in the future than those who bought only 1 product.

Those who bought 3 or more goods at once, make up 14% more orders in the future.



And now the main question ...

HOW TO INCREASE THE QUANTITY OF GOODS IN THE FIRST CUSTOMER ORDER?

Based on the statistics obtained, it is quite obvious that the more goods a customer buys in the first order, the greater the likelihood that he will continue to buy from you in the future.

Accordingly, online sellers are more than interested in selling as much of the goods to the customer as possible at the very first purchase.
How to influence the quantity of goods purchased:

• Add product recommendations. Before the client enters the order payment page, show him the block with recommended products. These recommendations should be based on what other customers have bought with the same product.
• Add products "impulse purchase." The principle is the same as at the supermarket checkout. Standing at the checkout, waiting for your turn, you definitely take chewing gums, coffee bags, chocolates, etc. By the same principle, add to the checkout page a selection of not expensive, but popular products that the customer can add to his order.
• Offer a discount or special offer on additional items. This may be an offer of free shipping or an additional discount for the purchase of additional goods. For example: Buy 2 things - 3 as a gift, Free shipping, when buying from $ 100 - add another product to the order, 30% discount on the second product and 50% on the third, etc.
• Repost in social networks. Invite customers to share the news about their purchase on social networks and get a discount on the purchase of additional products.
• Make the buying process look like a quest. You can use any game mechanics for this task. For example, to give the client a bonus card, on which, the more he makes purchases, the more free gifts, bonuses or will receive. Or the more purchases, the greater the discount on his card.

After the first order, NOT ALL LOST ...

Overcoming the second order barrier is one of the biggest challenges for online merchants.

Even if you didn’t manage to motivate a customer to buy more than 1 product when it was first ordered, you shouldn’t stop and give up.

The main strategy here is to invest in various channels of communication with the client in order to return it to the site for the second purchase.

Such channels can be:

1. Sending trigger letters after purchase and for resuscitation of inactive clients.
2. Letters with product recommendations.
3. SMS messages to customers who have not been buying from you for a long time.
4. Push notifications.
5. Retargeting campaigns on Facebook, Twitter or Vkontakte.