Reasons Why Return Shoppers are Profitable to Online Business

January 5, 2016 Written By Yogesh Trivedi

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No one can deny the fact of returning customer weigh more than new customers to improve the profit margin of a company. Loyal customers are more likely to buy from you and spend more money as that of new customer who rethinks before investing with you. Even now companies focus more on customer acquisition and put their efforts in building new customers by investing big amount in marketing strategies.

Contrary, research shows customer retention has marked long time success in gaining the potential customers trust that subsequently increase your business ROI. Even companies who tries to drive more traffic should instead focus on gaining their existing customers interest who have already know you and given tremendous ways to cultivate your profits.

We do not deny the importance of customer retention as the customer will not purchase again if they haven’t purchase once. Companies spend 80% on their marketing campaigns to gain new customers, putting the customer retention at back. However, stats shows by Gartner Group is 80% of companies profit is experienced from 20% of existing customers. This clears that, the powerful resources that can boost your sales and builds a long time revenue are right there.

These 20% customers are profitable for your business. Here, we will show how these repeated customers are important for your business and how they can return profits to your business.

Reasons Why Returning Shoppers are Profitable to Business

A Returning Shopper Will Purchase From Your Very Often

Its fact that the returning shopper has obviously bought more from you resulting is more sales number than the new shopper who have just bought a product from you. What gain interest is that the returning shopper will definitely make a purchase from you again that will considerably increase your website sales.

Truly, more sales means high profit margin. Follow right marketing strategies to build customer retention tactics that will serve with potential return to your business in future. If you want the sales figure to rise in future, then start focusing on the engaging customers who comes back to you. Be attentive about their shopping behavior and define how to approach them.

Returning Shopper Spends More


When talking about returning shopper, the two questions you should think is how frequently they are coming back and how much they are spending. A repeated shopper who holds good shopping experience from you will likely to come often and even spends more. Research shows repeated customers spend 67% more than new shoppers. Proving the fact, repeated shoppers not only serves high conversion rates but also purchase more on an average. This means, they are buying more than new customers.

Returning Shopper Buy More in Peak Season

Studies continuously prove holiday season is the best time when the merchants experience bulk sales. This is a particularly one season that keeps the merchants busy. The most busy holiday seasons are Black Friday, Cyber Monday and Christmas. Holiday season plays an important role in rendering the success to the eCommerce Store. The main reason behind these increased sales is the huge purchase from the potential customers compare to other shoppers which likely spend 17% more in a transaction as stated by Adobe. The repeated customers spends 25% more during these holiday seasons contributing a large sales figure.

Returning Shopper Talks About Your Store More

We all understand how important marketing is to take business to next level. After rendering with several benefits, repeated shoppers hold marketing potential. Giving them good product and service leads to mouth advertisement which of course reflects your business sales. According to Bain & Company, more spending a customer do at your website, more they made referral. Getting a good shopping experience from your store make them confident in purchasing again and that is what creates a positive referral for you.

To encourage the potential buyers to refer your brand, add reward points for each referral they made.

At the End

This blog is written to drive your attention towards Customer Retention. Well, having a strong customer base is what that repeats your business sales. Check our Customer Retention is King blog to know how the customer retention leads success to your business.

Start aiming for high repeated customers and achieve high profit!!! Contact us to build strong eCommerce Strategy for your business today!!

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  1. One point I would like to add in it. Returning customers who have already purchased from you will easily get convinced to buy again which will tends to reduce marketing cost.

  2. Thank you for sharing this article. I appreciate how you have listed the major points. If we are in the competition then we have to take care of our existing customer. Even investing little and providing with the quality products and services lets our customer to tell about our stores to their social circle.

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