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Insight

Customer retention vs acquisition: why repeat buyers come before more ads

For any business that sells more than once, the customer retention vs acquisition question has a clear answer: fix repeat purchase first. Spending more to win customers who never return is expensive, and a few retention basics change the maths quickly.

By the Nians team

Know your repeat purchase rate

It is the single most useful number for any business that sells more than once. Track it monthly.

Automate the moments that matter

Welcome, post-purchase, replenishment and win-back messages do most of the work once set up.

Personalise with behaviour, beyond first names

What someone bought and browsed says far more than their first name in a subject line.

Use the right channel

Email, SMS and WhatsApp each suit different messages. Let customers choose where they hear from you.

Putting it into practice

To act on this, calculate your repeat purchase rate for the last few months: customers who ordered more than once, divided by all customers. Set it up as a monthly report so it sits next to acquisition numbers in every review, and agree a target with the team that runs your ads.

Next, map the moments after a first purchase where a message would help: the welcome, delivery, the point when a product usually runs out, and the time when a customer has gone quiet. Build one automated message for each, starting with the moment closest to the first order, and compare results against customers who did not receive it.

Then use purchase and browsing data to choose what each customer sees, and ask customers whether they prefer email, SMS or WhatsApp. Only once repeat purchase is climbing should extra ad budget go in.

Key takeaways

  • Track repeat purchase rate
  • Automate key lifecycle moments
  • Personalise on behaviour
  • Offer channel choice
N
The Nians teamWritten by practitioners across marketing, technology and AI.
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