You probably know the age-old business adage that it’s cheaper to sell to an existing customer than it is to acquire a new one. In fact, it’s about 5x more expensive to acquire a new customer than it is to sell to an existing customer. It’s been reported that increasing customer retention by 5% can yield a 25 - 95% increase in profit for your business. Furthermore, the average success rate of selling to an existing customer is 60-70%, while that of a new customer is just 5-20%.
All customers are important, but not all of those customers are created. Although every vehicle owner is a valued potential parts customer, the difference is between new and returning shoppers. RevolutionParts recently looked at a year’s worth of data consisting of over 100 million unique users. Based on the data, here is why return parts customers are so important:
RevolutionParts shopper behavior data shows that return shoppers account for 54.9% of visits, where new shoppers account for a lesser 45.1%.
More than half of web store visitors are return customers; this emphasizes the importance of nurturing customer loyalty through marketing and outreach after the initial point-of-sale.
It’s no secret that you want customers to spend more in your parts department, and that is exactly what return customers do. Return shoppers to RevolutionParts web stores spend $65 more per order on average. Once someone makes a purchase from your web store, they are likely to spend more money the next time they purchase a part from you.
Getting someone to come to your web store costs ad dollars. Once someone lands on your website, your job is to convert them into customers. The higher your conversion rate, the less money each conversion costs you. Return parts shoppers convert at 2X the rate of new visitors, meaning they will take less money to acquire.
Word-of-mouth is a blessing to your marketing budget. After all, it’s free advertising. Generally, research has shown that return customers refer 50% more people than one-time buyers. When you give customers an affordable, convenient, and reliable shopping experience, not only will they come back for future needs, they’ll tell their friends and family to shop with you too. That means you stand to gain new customers at absolutely no cost. RevolutionParts found that over 5% of gross sales came from referrals.
The RevolutionParts eCommerce Shopper Behavior Report gives insight into the behavior of new and returning customers, including demographics, the devices your customers are using to purchase their items, and customer traffic sources. To view the full report, visit: https://www.revolutionparts.com/
Ibrahim has been responsible for bringing easy-to-use products to life, designing web applications that scale, building and running high-performing teams, and managing large-scale software products. Ibrahim worked in software development for both Inter-Tel and PayPal before the idea for RevolutionParts was born in 2013. Ibrahim believes that it is time for dealers to transform the way parts buyers and sellers connect. He has led the startup to over 1,300 customers and $1 billion in part and accessory sales since inception.
Join our newsletter and get news in your inbox every week! We hate spam too, so no worries about this.