Jul 17, 2023
With host retail coach Wendy
Batten
https://wendybatten.com/166/
You’ve made it to Part 4 of the Simple Sales Strategy
Series! Today we are talking about Return Customer Rate.
So what is a Return Customer Rate? Your Return
Customer Rate is calculated by dividing the number of customers who
have made more than one purchase from your store by the total
number of customers you’ve had during a given timeframe. It’s the
percentage of your customers who are coming back again.
Your POS system likely gives you this number.
Keep in mind that figuring out your return customer rate isn’t a
perfect science. Your POS system likely tracks return customers by
the credit/debit cards they use, so customers who pay in cash might
fly under the radar.
So now that you have your return customer rate handy,
give it a quick analysis. At first glance, a high rate might
seem like something to celebrate, but keep in mind that super high
return rates might mean that you aren’t acquiring new customers. On
the other hand, if our return rate is low, we might be acquiring
tons of new customers but if they aren’t coming back we need to
know why. Unfortunately, there is no ideal return customer rate,
but much like the rest of this series, knowing and analyzing your
return customer rate is super empowering and important to your
marketing strategy and the tactics you put in place to achieve
success in your strategy.
“[You need to understand]…where to spend your time
and your energy…so that you are not just doing random acts of
marketing.” – Wendy Batten
So let’s recap: Know your numbers: Conversion rate,
average order value, and return customer rate. Know how many people
are coming into your shop. Identify where you want to improve your
numbers and ideally what you want them to be. (This is your
STRATEGY.) Next, attach TACTICS (how you are going to implement
your strategy) and get to work implementing.
This is truly where the magic happens. Retailers
who are intentional with their marketing strategies build strong,
healthy businesses.
Related podcasts we think you’ll like:
Episode
165: Simple Sales Strategy Series: Increasing Your Average
Order Value
Episode
164: Simple Sales Strategy Series: Foot Traffic and
Conversion
Episode
163: Simple Sales Strategy Series: Where to Start
About your host, Wendy Batten
In case we haven’t met yet, I’m Wendy, a small
business coach and founder of the
Retailer’s Inner Circle, where I help other independent shop
owners learn how to gain the right business skillsets to see more
profits, paychecks, and joy as they navigate running their retail
business.
Through online classes, business coaching programs,
speaking, and a top-ranked podcast,
I’ve helped hundreds of retailers around the globe reclaim their
dream and see the success they want from their beautiful shops. My
signature private coaching community, The
Retailer’s Inner Circle, has helped retailers around the world
build their retail business skill sets and confidence.
I am proud to have been featured in several major
publications, including my own business column in What Women Create
magazine. I have been privileged to be a guest on top-ranked
podcasts and sought-after as a guest speaker and teacher for
several brands, associations, and communities that are passionate
about the success of independent retailers.
When I’m not coaching, you will find me either DIYing
and renovating my very imperfect old crooked cottage by the sea in
the UNESCO World Heritage town of Lunenburg, NS, or blogging about
our travel and RVing adventures and the weird fun things we get up
to in our coastal village. I’d love to invite you to check out one
of my free resources for real retailers at https://wendybatten.com/free-resources/
For more support from Wendy
Retailer’s
Inner Circle – Join Wendy inside the best retailer’s
community
Wendy’s FREE Resources
for shop owners
Hang out and connect
with Wendy on IG
All of Wendy’s programs and services for shop owners
can be found HERE.
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