Many cross-border electricity supplier sellers are aware of the importance of the rate of repurchase but do not know exactly what the improvement of repurchase rate will bring to the store or the relationship between the rate of repurchase and the accumulation of users.
Focusing on the repurchase rate and user accumulation, Eric Liu, Director of User Solutions Creative Department of Zhongshan E-Commerce Co., Ltd, gave a detailed answer.
SellerSpirit Editor: For cross-border e-commerce sellers, in addition to to attract new customers, the maintenance of the old customers and the purchase rate is are essential, could you share us the idea about what the repeat buying will influence the cross-border electricity sellers?
Eric Liu: The first is the input-output ratio. Especially in the highly competitive eCommerce space, the cost of acquiring a new user is 9-10 times or more than that of an old user as the cost of advertising / traffic increases. For the sellers, get the trust of older users and attention is much easier than get new users. The figure below is a survey data released by other report:
The second is the market and contribution. Cross-border e-commerce is already a Red Sea. With the gradual disappearance of the e-commerce dividend, e-commerce sellers need to gain a bigger market share. The contribution of the old users is crucial. For example, in 2017, 1 / 4 Anker's Bluetooth speakers sale come from the old user. The purchase of the repeating buyer's own contribution to the consumer is worth attention. Applying the two and eight principle, they are probably the most loyal users at the top of the consumer pyramid, and they may be only 20%, but the average contribution to the sales must be much higher than the remaining 80%, and the older users have a higher active rate.
Here is a date from Adobe, 41% of their profits come from the 8% of the customers.
The third is the word of mouth strength. Re-purchase users are satisfied with our products and services, numerous free advertise will take effect. For new buyers, trust their friends to be more reliable than trusting sellers.
The fourth is a great promotion of the outbreak of new products. The trust of re-purchase users will prompt them to try our new products, so that the cost of new products will be significantly reduced.
The fifth is the repurchase user allows you to understand your product and consumer market faster. Consumer habits, ethnic differences, etc. are essential for e-commerce, let alone cross-border e-commerce. How to understand the community in overseas markets? How do you know your product and brand response in overseas markets? Repurchase users is your breakthrough. Of course, the seller needs to combine the commodity itself, store management, team resources and talent status to judge the expected repurchase and output.
Repurchase rate of 1% -15% within 90 days is the user acquisition mode, Shops can put more energy and resources into new users to obtain and convert sales; repurchase rate of 15-30% within 90 days is a mixed model, the store should balance the new user conversion and retention of the old users; repurchase Rate of more than 30% within 90 days is loyalty mode, the store can put more energy and resources into the user repurchase. Finally, keep in mind that no matter how many or fewer sellers now purchase more subscribers, they are all critical factors that affect your business success.
SellerSpirit Editor: What are the factors that affect the repurchase rate? Cross-border electricity how supplier sellers to control these factors and what details need to pay attention to ?
Eric Liu: Above (How to Use Peak Season to Increase Reinstatement Rate?) As mentioned above, there are many factors that affect the repurchase rate. It required the seller to envision the entire user experience and optimize the pain points that affect the user experience in each process . At the same time, we need to have a deeper analysis of users. After all, the influence of cross-border e-commerce such as cultural factors, consumer psychology and the purchasing power of target groups is far greater than that of domestic e-commerce. These problems can be solved by analyzing user feedback or questionnaire.
SellerSpirit Editor: before the peak season, what can be done to stimulate the old customers to enhance the repurchase rate in the shopping season?
Eric Liu: The first is to do the users stratification in advance, that is, accurate positioning of consumer groups. If the amount of data is large or unique product categories, but also need to make a portrait of the user, have a clearer user group judgment. For example, after the RFM model comes out, cyclical reminders can be made to users with obvious consumption cycles, which can be highly converted with high season activities. Followed is by the preparing adequate and good quality goods. The word of mouth needs to be established for a long time. During the peak season, the product should be strictly controlled. Otherwise, the increase of return after the consumption peak season will bring great impact on the sales performance, and the safety of Listing will also bring about major risks.
In addition, information synchronization is the key, if you usually have maintained the buyers based on a classification, you could on the official website and other channels to inform the content of peak season activities in advance, and gradually guide the user to buy at the time we want. The last is the optimization of the platform display content. During the peak season, users receive massive advertisement delivery. In the process of constant selection and evaluation, the streamlining of platform content is very important. Sellers should optimize their presentation so that users can quickly capture the key content to improve the conversion rate.
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