According to Bluecore’s latest research, it pays to know your online shoppers. The retailer’s 2024 Customer Growth Benchmark report, in its eighth edition, studied more than 100 retailers across several segments to determine how they perform “when it comes to identifying their anonymous visitors, turning them into buyers, and then directly impacting how much they spend and how frequently,” the retail tech company said.
Authors of the report said they found, on average, that retailers “only know who 15 percent to 27 percent of their visitors are, meaning that they’re letting up to 85 percent of potential customers fly under the radar and missing out on a significant opportunity to increase repeat purchases.”
The research revealed that while many retailers are not fully aware of each individual visitor, the ones who can identify them at a “higher level” see a jump in repeat purchases and conversions. “Businesses with high ID rates are seeing repeat purchase rates 53 percent higher than the standard, compared to companies that either don’t identify consumers or do it minimally, seeing a repeat purchase rate 33 percent lower than their competitors,” Bluecore said, adding that 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.”
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Jason Grunberg, chief marketing officer 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.”
Grunber said 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.”
The report showed that consumers spend more money on a second visit. The report’s authors said retailers and brands across the board “are seeing average spend leap by 69 percent between first and subsequent purchases.” Bluecore said health and beauty brands tend to see the highest increase in sales per buyer at 78 percent, “whereas home goods retailers see the lowest increase in order value from first to second-time purchases (13 percent).”
The report found that, on average, just 17 percent of consumers buy twice from the same retailer within one year, but there are some verticals that see more repeat purchases. “Health and beauty retailers see the highest number of customers come back to buy again in the first year (22 percent), quickly followed by sporting goods and outdoor retailers at 21 percent and then, apparel retailers at 20 percent,” the report stated.
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