Why Non-Customers Can Be Even More Valuable Than Customers
Everyone loves regular customers, and rightly so.
And if someone comes to your website but doesn’t do business with you, you at least want them to engage with you in some way, surely? By giving you their email address, for example, or requesting a free ebook. All of that’s true, but it can obscure one other critical aspect of effective online marketing. You see, people who return to your website a second time, after initially leaving without engaging with you, are far more valuable on a per-head basis than even your existing customers.
Here’s one example: Returning website visitor transactions made up 48% of all US e-commerce sessions in the fourth quarter of 2015. The likelihood of a returning visitor actually buying was 15%, vs 7.6% for existing shoppers.
That’s right. Non-customers were twice as likely to buy as existing ones!
So here’s a question. What’s your strategy for converting unconverted website visitors into repeat visitors? And what’s your strategy for then converting those returning visitors into buyers or leads (that is, someone who gives you their contact details)? If you have a strategy, congratulations! You’re among a select minority.
If you don’t yet have a strategy, here’s a place to start. Ask yourself:
- Why did the person return?
- What did they do between the first and second visit that might have influenced their decision to buy or engage with you?
- What could you do increase return rates and conversion rates among those who return?
There are no obvious answers to these questions, and they’ll probably vary depending on your industry, your website, the services you offer, and a lot of other variables. That’s where we come in. We can help you track and understand visitor behaviour, even when those people are not on your website. Then we can work with you to develop strategies for increasing return and conversion rates over time.
Keep in mind that when someone returns, you must have done something right in the first place (otherwise they wouldn’t have returned!). So you’re not trying to fix something that’s broken; you’re out to increase its effectiveness. As always, if you’d like to learn more about this opportunity, call us and we’ll be delighted to explore it with you.
One last thing. According to RJ Metrics, the top quartile of worldwide e-commerce companies receive most of their revenue from repeat customers at the two-year mark. At three years, repeat customers account for more than 60% of revenue. So whatever you do, keep loving your existing customers!