Very few companies are obsessed with customer acquisition. This means 80% of my client base needs to be obsessed with customer acquisition. but the work the marketer performs does not fundamentally change the sales trajectory of the brand.Ībout 80% of my client base possess twelve-month buyers with rebuy rates < 40%. Those who say it "works" are looking at incremental gains in sales/profit, which happen. According to a survey reported by The Boston Globe, 68 percent of the potential jury pool believes Tsarnev is guilty before hearing a single witness or examining a shred of evidence at trial. This tactic (push loyalty efforts to customers unlikely to repurchase) just doesn't work. The company invests all sorts of money on discounts and bribes to encourage customers to become "loyal". The biggest mistakes I see are when a company with a 27% rebuy rate tries to act like they have a 72% rebuy rate. When overall rebuy rates are 60%, your purpose as a marketer is to find as many ways as possible to increase the number of incremental purchases loyal customers place. The rates simply tell you what your marketing purpose is. The rates are not reflective of success or failure (unless compared to prior years). Rebuy rates matter because they indicate the type of business you manage. Take every customer who bought during 2020 (100), then calculate the percentage who bought again in 2021 (27), then divide 2021 repurchasers by your 2020 inventory of customers (100) and you have your rebuy rate (27/100 = 27%). Rebuy rates are so darn important - and they are so darn easy to calculate. Almost twenty years ago I wrote a book that had nearly two-hundred pages of text talking about rebuy (repurchase) rates.
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