Bluecore, a retail technology company that creates constant customer movement for over 400 brands, has released its 2024 Customer Growth Benchmark report.
This eighth annual report explores how over 100 retailers and DTC brands, across apparel, beauty, home, sporting goods, and other verticals, are performing in identifying their anonymous visitors, turning them into buyers, and then directly impacting how much they spend and how frequently.
The ability to recognize potential shoppers allows retailers and brands to capitalize on a typically missed opportunity, tailoring the shopping experience based on each individual’s preferences and behaviors to drive long term value.
The report shows that, on average, retailers only know who 15% to 27% of their visitors are, and up to 85% of potential customers fly under the radar and are missing out on a significant opportunity to increase repeat purchases.
Jason Grunberg, CMO of Bluecore, said,
“One of the most valuable assets any retailer or brand has is its customer file. That’s why the organizations growing in a challenging climate like today’s have invested in increasing identification rates. Knowing who their shoppers are gives them the means to execute precision strategies and tactics that create incremental revenue from new, active, and even inactive customers. This year’s benchmarks confirm that when retailers are able to identify their shoppers, they put themselves in a position to influence high-value behaviors that not only drive repeat purchases, but also set the stage for long-term customer relationships.”
Businesses with high ID rates are seeing repeat purchase rates 53% higher than the standard, compared to companies that either do not identify consumers or do it minimally. These companies are seeing a repeat purchase rate 33% lower than their competitors.
This eighth annual report explores how over 100 retailers and DTC brands, across apparel, beauty, home, sporting goods, and other verticals, are performing in identifying their anonymous visitors, turning them into buyers, and then directly impacting how much they spend and how frequently.
The ability to recognize potential shoppers allows retailers and brands to capitalize on a typically missed opportunity, tailoring the shopping experience based on each individual’s preferences and behaviors to drive long term value.
The report shows that, on average, retailers only know who 15% to 27% of their visitors are, and up to 85% of potential customers fly under the radar and are missing out on a significant opportunity to increase repeat purchases.
Jason Grunberg, CMO of Bluecore, said,
“One of the most valuable assets any retailer or brand has is its customer file. That’s why the organizations growing in a challenging climate like today’s have invested in increasing identification rates. Knowing who their shoppers are gives them the means to execute precision strategies and tactics that create incremental revenue from new, active, and even inactive customers. This year’s benchmarks confirm that when retailers are able to identify their shoppers, they put themselves in a position to influence high-value behaviors that not only drive repeat purchases, but also set the stage for long-term customer relationships.”
Businesses with high ID rates are seeing repeat purchase rates 53% higher than the standard, compared to companies that either do not identify consumers or do it minimally. These companies are seeing a repeat purchase rate 33% lower than their competitors.
Key Findings
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Shoppers spend more the second time around. Retailers across the board are seeing an average spending leap of 69% between first and subsequent purchases. Health and Beauty brands see the highest increase in sales per buyer (78%).
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Repeat shoppers within a year are highest for Health and Beauty retailers. On average, only 17% of consumers buy twice from the same retailer in one year. Health and Beauty retailers see the highest number of customers come back in the first year (22%).
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Turning inactive customers back into active customers remains an untapped opportunity. Return customers order and spend more than net new ones, however, retailers and brands across the board do not reach reactivation rates higher than 10%. Health and Beauty see a reactivation rate of 9%.
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Retailers can increase “customer survivorship” by influencing more purchases from new customers over the first two years and getting ahead of a significant drop-off in year three.
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After three years, retailers experience a drop-off among even their most previously consistent customers. Three years after an initial purchase, only 6% of buyers continue buying, whereas after two years 17% are still engaged and in that first initial year 78% make more than one purchase.
See here for the full report.
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Photo: Evgenyrychko/ shutterstock.com
