![]() Shopify is preventing an overview for your business of your customers & their data in the first-time vs returning customer sales report. These one time customers can even be analysed with the so called ‘Churn rate’, which shows the percentage of people buying something once and not coming back. SO what does this mean in figures? It simply means, that if you sell a product to a one-time customer the calculation looks like this:Īnd this will not be the only problem you face, because after this process you will have to generate new customers again and have to pay for reaching people and like that, the stone keeps on rolling and you may write red figures even though you’re selling. Additionally, many of them create additional expenses for you by returning their order or contacting customer service to address an issue. ![]() But after making one purchase, they rarely return. You spent a significant amount of money to attract them to your store and they see your paid ad by accident on Instagram when scrolling through their friends stories. ![]() So why isn’t my revenue increasing even though I get more orders?īecause of the “ single-purchase customer“. The success rate of selling to a new customer is 5-20%, while it is 60-70% for an existing one.Ĭustomer retention by 5% can increase your businesses profits up to 95%. If you are a marketeer or related to the industry you might have heard of the following facts before:Īcquiring a new customer can cost up to 5x than retaining an existing one. But these are getting more expensive and at the same time more unseen because of the load of paid ads.Īnd to be honest, this situation won’t get better… so, what is our solution to generate revenue and grow your business if reaching customers through paid ads gets harder? That’s right, we all heard of it – Customer relation. Not so long ago it was easy to get into the eCommerce game by simply generating paid ads. Our digital world is bursting and with it eCommerce does.
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