Customer Analysis and Retention for Shopify

How Report Pundit Improves Your Customer Analysis and Retention Rates

In the bustling world of eCommerce, understanding your customers isn’t just a luxury — it’s essential to remain competitive. Why?

Take a look at these stats:

• A repeat customer spends 67% more than a new one.
• The chances of selling to an existing customer is 60-70% while it’s 5-20% for a new one.
• Increasing customer retention rates by 5% can increase profits from 25% to 95%.
• 66% of customers leave a business after just one bad customer experience.

So, it’s important to make the most of the customers you have already acquired. And that can be done through customer analysis, where a collection of customer-related data points is analyzed to better understand the target market.

Customer analysis provides insights into customer behavior, like how, when, and for what duration they interact with your Shopify store. You’ll learn why customers return to your store and how to keep them happy for your growth.

If you need more help understanding customer analysis to improve your retention rate, then this article has you covered. It reveals the value of your repeat shoppers in detail, with insights on boosting their experience and loyalty, and how this can ramp up your store's performance. Think of it as your guide to making those loyal customers stick around even longer.

We’ll also unpack reports from Report Pundit, revealing how important data is to better understand and engage your customers. It’s all about smart strategies for a smarter business, and how to leverage your customers to boost the bottom line.

Returning Customers and Customer Retention

The more a customer returns to your store, the more they spend. And since they’re already at your website, you’ll spend less promoting products for repeat orders versus tracking down new customers. Returning customers aren’t just a valuable asset for your business, but also a critical key performance indicator (KPI) to monitor.

Did You Know?

The average customer return rate in eCommerce is 31%, (number varies based on business type).

Understanding why customers return to your store

There are many reasons for your customers to return:

• They liked the previous product they bought and decided to explore more items
• Your product quality is good
• They find your prices reasonable
• Your store gives great user experience (responsive UI, easy product selection, checkout, etc)
• Your customer support solves issues without a hassle

Figuring out the reasons why your customers return is a crucial component of customer analysis and an important part of your customer retention process.

Customer Retention

It can be quite hard for an eCommerce merchant to acquire new customers. Don’t work to actively keep them, however, and you might as well flush that customer acquisition investment down the drain.

The active effort of keeping acquired customers is called customer retention. It sheds light on how your Shopify store entices customers to come back, or what pushes them away.

Your business needs to have a strong customer retention strategy based on information like customer behavior over time, high value customers, successful product promotion, reasons for customer repetition, etc.

With an effective customer retention process, you can boost your customer return rate, building brand trust and loyalty.

Do you know how many of your customers come back for more, and why? Specific data on customer interaction with your store is key to reveal those insights, which is why you need the Report Pundit Returning/Repeat Customer report.

Returning Customer Reports by Report Pundit

There are three pre-made reports in Report Pundit with data on repeat customers - Returning Customers, Most Valuable Customers and First time vs Returning Customer Sales. It only takes a few clicks to create these reports and get to the root of your Shopify store’s customer return rate.

They contain valuable data fields like Customer Name, Customer Type, Orders, and Order Count, among others for a comprehensive overview of your returning customer situation. You can even customize these reports to add more data fields you find necessary to enhance them even more.

The reports use this formula to calculate repeat customer rate:

Repeat Customer Rate = (Total No. of customers with order count greater than 1 / Total No. of Customers)*100

These reports let you…

…know a returning customer’s revenue contribution

• Learn how much money a customer is bringing in to your Shopify business
• Compare revenue contributions of your new and existing customers

…discover the source and product bringing a customer back

• Find out where your most loyal and high-spending customers are coming from
• Compare a customer’s first and second order purchases to understand why they returned

…segment your customers

• Categorize your customers into convenient segments
• Study the spending patterns of each segment
• Check out the Average Order Value of each segment

…and more, especially if you customize the reports. They are treasure troves of insights that’ll help you create the right customer retention strategy for your Shopify store and boost customer retention rate.

And here’s how the reports benefit your store performance and customer analysis:

• Increase in Average Order Value (AOV)

Each customer’s past purchase and preference data in these reports can be used to offer personalized product recommendations. It makes upselling or cross-selling easy, leading to higher average order values and increased revenue without extensive promotional efforts.

• Reduced Churn Rate

Returning customer reports help identify the factors contributing to loyalty by addressing the pain points while enhancing what’s working well. Retained customers require fewer resources than acquiring new ones, leading to cost savings and a steady revenue stream.

• Customer Experience Enhancement

Satisfied customers are more likely to make repeat purchases, reducing the need for extensive customer support and minimizing costs associated with addressing complaints or returns. Personalize your Shopify store customer experience using insights gained from these reports. Your customers will feel valued, making your brand more appealing.

Ex: Provide product recommendations that complement the product being purchased by a customer based on their past purchases/actions. If a customer bought a phone case in the past, you can recommend a similar one while they shop for new phones.

• Customer Lifetime Value (CLV) Boost

By focusing on CLV boosting strategies such as loyalty programs or exclusive offers, you hit revenue home runs frequently. You can understand and maximize CLV by drilling down on the returning customer reports for insights into customer actions when they visit your store. You’ll learn how much each customer has spent in total and how frequently, helping you decide their value.

In a Nutshell

You run your Shopify business, but your customers fuel it. So, understanding them is a top priority to remain competitive in the eCommerce landscape of today. Customer analysis is the way to go to achieve it, powered by accurate, comprehensive, and timely customer data. If you’re concerned about that data, don’t worry.

Report Pundit has you covered

Our customer retention reports are designed to provide accurate, real-time data for your customer analysis efforts to be successful, helping to maintain high customer return rates. And while your customer analysis process may involve a lot of steps, installing our app doesn’t.

Click here and then on the “Install” button and you’re in. This starts your 14-day free trial, post which you can hop on a plan that meets your needs.

We’ll keep an eye on what customers are up to in your store, so that you can work on keeping them happy and coming back for more. Get the key data you need with Report Pundit and give your Shopify store a solid boost.