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Why We Care About Repeat Customers

Why We Care About Repeat Customers [How to Think Like a Google Ads Agency]

The best customers are repeat customers. Remarketing helps your first-time customers to become loyal customers over the longer-term. It can be even more effective than email because you are not competing with crowded inbox.

— Petra Manos
High ROI Ecommerce Google Ads Specialist

Pretty much anything you can think of sending to a customer as an email, you can also send it as a Display Remarketing campaign. It’s a great way to turn a once-off customer into a long-term fan. You’ll see a lot more free (organic) traffic purchasing from you once they have been seeing your ads as well because a lot of people prefer to type your name into the browser instead of clicking on an ad.

Repeat business is good business. Use your good margins and customer loyalty to your advantage!

— Petra Manos
High ROI Ecommerce Google Ads Specialist

When you get repeat business you can afford to scale more aggressively through paid advertising. The reason being, the lifetime value of the customer less the initial cost to acquire the customer and less the cost of goods sold ends up being a much bigger profit. If your business model has a recurring component, (i.e. if you sell supplies that run out and need to be purchased again), and if your cashflow can absorb a little more short-term expense, then calculate your Return On Ad Spend based on your expected lifetime value and build a larger customer base in order to grow long-term revenue.

If you have repeat customers, you can use paid channels to get the first sale and then leverage your customer relationship for subsequent sales.

— Petra Manos
High ROI Ecommerce Google Ads Specialist

One of the hot strategies in today’s digital marketplace is “sales funnels”. This is a trendy way to describe a process of moving someone from a casual interest in your products or services, to becoming a customer, to becoming a big ticket or repeat customer. As long as you have an internal process for securing repeat or bigger ticket sales, you can use your paid marketing strategy to buy a small sale that may become a bigger customer. The trick then is to generate as many customers for small sales as possible, and then upsell a percentage of them into long-term profitable customers. If you have loss leaders in your inventory, try to make them inexpensive to ship and delight the recipient so that you can make a big impact for a small cost.

You’ll definitely want to track “hyperactive buyers”, – i.e. people who buy lots of products over time, as this will be your best performing list – the better the list, the better the result on Display.

— Petra Manos
High ROI Ecommerce Google Ads Specialist

Some marketers presume that once someone has become a customer, they should no longer receive your paid advertising because you can now reach them for free via email. This could not be further from the truth.

First of all, a lot of people are not reading promotional emails, full stop. Simply because they are too busy to or don’t like reading email.

Second of all, once someone has purchased from you once, they are much, much more likely to buy from you again. So it makes sense to advertise to them again, because next time they are purchasing that category you will want them to think of you (Your customers are not as loyal as you hope. They are buying from your competitors as well.).

If someone has purchased from you multiple times – let’s call them a “hyperactive buyer” – then it means they care a lot about your category of products in their life. In this case, it is even more important that they keep buying from you and not drift off to buy from your competitors due to negligence on your part. These users will be swayed by other brands’ promotions, and so by not advertising to them regularly you may miss out on their future business.

My general rule of thumb is the more valuable a customer is due to past transactions, the more Google advertising (Display, Search, Shopping, YouTube) you will want to show them in the future, UNLESS of course you are selling an item that someone would only ever purchase once. Like perhaps a coffin 🙂

If your customers purchase from you more than once, their value is greater than their first purchase. Sometimes you have to break even on the first sale in order to attract quality customers who will transact more over the long term.

— Petra Manos
High ROI Ecommerce Google Ads Specialist

IKEA is the master of using llifetime value to their advantage. They know that if they can entice you to open your wallet to buy a $3 footstool or a $5 breakfast then you’ll be much more likely to also add larger pieces of furniture to your cart. They don’t make any money on those $3 footstools or other similar cheap items, but they make sure to place them prominently throughout the store so that you will make your first purchase and therefore take your first step towards becoming a loyal, repeat customer of their profitable products.

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