A study of response rates gives evidence of some of my suspicions about repeat sales. If some of your business could work off repeat sales, you might be able to use this study to increase your response rates…
A study by the Database Marketing Institute gave some significant insight into marketing repeat sales. You could make a whole new slew of ad-copy to get these customers to buy from you again.
Take a minute to read this study and what it says about its first two graphs. It reveals something eye-opening for repeat business.
Did you read it?
Yeah crazy huh!? It gives credence to my suspicion: Recent buyers give better responses for a repeat sale than more frequent buyers.
Why would recent buyers more likely give a better response than frequent buyers?
Maybe its because of the “What have you done for me lately?” mentality of most customers. Most customers have short term memory of buying experiences. If your fresh in their head and your service is good, they’ll come back for more.
Maybe it has to do with diminishing marginal utility. But even these two ideas don’t explain this phenomenon well, so I’m not really sure why.
The study goes on to explain the challenges in measuring response rates for repeat sales. It’s worth studying. It’s useful.
It’s worth thinking about how you’re business could make appealing offers to recent buyers. Start tracking your buyers visits. Try making offers to more recent buyers and compare their response rates with older buyers.
If recent buyer response rates are higher, you can write whole new ads to accompany a recent first purchase. Perhaps a compliment work or some sort of an upgrade. Find out what specific benefits a customer gets from buying from you a second time. Use the benefits uncovered in your “repeat ads”
Yup, more research 🙂