mCommerce Insights

The Real MVCs: How Returning Customers Multiply Your Profits


So, you're probably aware of the importance of retention with regard to your online store's success.  

To recap, here's the difference between a returning customer and a newly acquired one: 


  • They’re 65% more likely to buy during their browsing session
  • They spend an average of 55% more on every purchase
  • They’re 50% more likely to try new products

So, the question now is: why are retailers still investing massive amounts of their budgets into acquisition, when it clearly doesn't deliver the same ROI as retention strategies? It can cost 7x as much to acquire a new customer as to retain one – yet 44% of retailers place their focus on acquisition. 

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The chart above demonstrates the upward transition of the value of a returning customer – and the direct business impact their return can have on your bottom line. 

Beyond their propensity to purchase from you over your competitors, returning customers spend 31% more on average, and are more tuned in to the activity of your brand, including new offerings and promotions.

Increasing retention by just 5% can increase your profits by more than 50%.

When you think about it this way, there's simply no more valuable strategy with which to move your brand forward. 

Amanda Laviana

Written by Amanda Laviana

Marketing Communications Manager | Amanda is an experienced content marketer, with a background in advertising copywriting. She manages content across an array of platforms for Shopgate, including blogs, whitepapers, webinars, social media and video.


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