In a nutshell, repurchase propensity is the likelihood that a customer will purchase another product from you sometime in the future. This metric is critical for any business to understand if they have interest in driving consistent revenue. That being said, actually getting an answer to this question can be a daunting task.
This analysis is made harder by the fact that there can be a multitude of factors that can contribute to the answer and can differ based on industry. Things ranging from something as simple as price to specific promotion campaigns, the type of products purchased in the past or even demographic information. How do we even know where to start?
If you were able to understand which of your current customers are most likely to repurchase you would be able to know which campaigns are most effective and which products or prices influence customers the most. Furthermore, you could segment your customer base into similar groups and identify factors that influence that specific cohort. This is a marketers dream come true! At Big Squid we break these types of business problems down into three categories: Insight, Action and Refinement.
It’s an incredibly powerful metric to understand. The companies that are successful in understanding this important metric consistently outperform their competition and are better able to serve their customers. You could also look to the future to decide which products should be brought to market that will have the highest likelihood to be successful and have the power to sway consumers to repurchase additional products in the future. The data requirements to start solving this problem are easier than you might think. With basic data points such as customer purchase date and item(s) purchased you will be able to start taking action.
So the question is… Why haven’t you included repurchase propensity analysis in your reporting yet?
Big Squid has built easy to use solutions to individual business problems across all verticals and departments. Here are a few examples in addition to Repurchase Propensity:
Watch this recorded webinar led by CEO of Big Squid, Chris Knoch, to learn more about Repurchase Propensity and other business problems we are solving today.