Why Purchase Frequency Matters
Purchase frequency is a crucial metric to consider when evaluating the behavior of your current customers and your marketing efforts. It tracks the number of times a customer buys products or services from a company within a given period.
There is no such thing as a "one-size-fits-all" number for purchase frequency, but generally, higher is better. And the best way to boost the number of times a customer buys from you is by sending them emails on a consistent basis.
Why is purchase frequency important?
Here are several reasons why you should track purchase frequency:
- Reviewing your purchase frequency can reveal whether your customers are buying from your competitors. For example, if their purchase frequency is dropping off, it may indicate that the customer is purchasing from one of your competitors instead of you.
- Understanding purchase frequency can also help you identify areas of your business where you need to improve. For example, if the purchase frequency of a loyal customer goes down, you know there is an issue that must be addressed. A decreasing purchase frequency is also an opportunity for you to reach out to customers to see if something is wrong. Unprompted, most customers won't tell you if your company has come up short in some way, but their purchase actions indicate that something is wrong.
- Purchase frequency also gives you valuable information about the purchasing behavior of your target audience. Once you have a baseline of a normal purchase frequency, as well as knowledge about when and how much your customers typically buy, you can tailor your marketing efforts around existing purchasing habits and trends.
Improve purchase frequency by sending emails
Distributing emails to customers and prospects increase how often customers purchase from you and remind customers of everything you offer. In fact, customers on your email list will purchase two to three times more often than customers who are not receiving emails, as long as the emails are distributed consistently and provide helpful information. Our clients we send emails for have an average return on investment of about 4,300%.
- Emails done right provide your customers information on all your products, services, and industry best practices to help establish your company as a trustworthy expert in the field and show everything you offer.
- Emails remind your customers about your company and encourage them to purchase from you instead of a competitor who may not be sending them emails.
- Your sales reps can learn who is more or less engaged by seeing who opens and clicks on your emails. They can then follow up with anyone who is consistently looking at them and move them to purchase, if they haven't.
- You can tailor specific emails to segments of your list who have a downward trending purchase frequency. Include a deal or special to push them to buy from you again and increase their purchase frequency back to a healthy number.
Purchase frequency is an essential metric that every business should track. A number that's too low might indicate that a customer is buying from a competitor or leaning toward leaving your company. Emails are the best method for increasing how often a customer buys your products and services and will ensure that number stays in the healthy range and consistently grows.
If you want help identifying and understanding the key metrics for your business or sending out professional, highly effective emails, contact Winsby now!