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Customer Retention. Automated

Empirical data re: AOV of One Time Buyers v Repeat Buyers

Posted by Matt Williamson on Jun 29, 2012 9:46:00 AM

As we gear up for deployment of our analytics capability, we're surfacing some very interesting trends.  An old adage that we hear with some regularity from our retail clients is that a loyal repeat customer is worth more than one time buyers.  We're at a point where we're seeing a trend across our clients' data...  that on average, average order value (AOV) for repeat buyers is 30%-50% higher than that for one time buyers.

In other words, repeat customers spend more money each time they transact.  Given that you have no acquisition cost, that additionally drives profit margins through the roof.

No wonder Amazon.com, Zappos.com and Bonobos.com are crushing it...  they do a phenomenal job retaining customers.

If you'd be interested in testing your data, please contact us for inclusion in our beta.  We can extract your data instantly from Magento, BigCommerce, Shopify, 3dCart, ChannelAdvisor, Yahoo!, Order Motion and other platforms for analysis.

AOV Repeat v. One Time Buyers
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