“Revenue from Repeat Online Customers” is an important metric that enables a business to understand the financial impact of its returning customers.
Identifying how is your loyal customer base can give you an insight if your product or services are liked and has the potential to generate more revenue in the long run. Over time, you’ll be able to identify which products you should sell and which ones you should not.
When a customer buys from your offering, your job has just started to keep them and to get in touch with them and make them loyal customers.
To understand all these further, track the revenue you get from your returning online customers.
What is Revenue from Repeat Online Customers?
Definition of Revenue from New Visitors
Revenue from Repeat Online Customers (RROC) is a metric that measures the amount of revenue generated by customers who have made multiple purchases from an online business.
RROC is an important metric because it highlights the value of customer loyalty and retention to the business.
This metric is useful for businesses to understand the importance of customer retention and loyalty. Repeat customers tend to be more profitable than new customers because they are more likely to make additional purchases and may require less marketing and acquisition costs than new customers.
Revenue from Repeat Online Customers Formula
The formula to calculate Revenue from New Visitors:
To calculate this metric, you first need to calculate the total revenue generated during a specific period of time, which can be done by adding up all the revenue earned from sales, subscriptions, or other streams of your revenue.
Next, you need to calculate the revenue generated by new visitors, which are visitors who have just visited your website for the first time.
Finally, subtract the revenue from new visitors from the total revenue to obtain the revenue from repeat online customers during the specified time period.
Additionally, If you want to have the percentage of your revenue from new visitors, simply follow this formula:
RROC = Total revenue generated by repeat customers / Total revenue
To calculate RROC, first, determine the total revenue generated by customers who have made more than one purchase during the specified time period. Next, determine the total revenue generated by all customers during the same time period.
Finally, divide the revenue generated by repeat customers by the total revenue generated by all customers and multiply by 100 to get a percentage.
For example, if a business generated $100,000 in total revenue during a given period, and $40,000 of that revenue came from repeat customers, the RROC would be:
RROC = ($40,000 / $100,000) x 100% = 40%
This indicates that 40% of the business’s revenue during that time period came from customers who have made multiple purchases.
How to track Revenue from Repeat Online Customers?
Monitoring RROC can help you identify areas where they can improve customer retention, such as through targeted marketing campaigns, loyalty programs, or improving the overall customer experience.
There are several tools that businesses can use to track Revenue from Repeat Online Customers (RROC) and other key metrics related to customer behavior. Here are some examples:
Customer Relationship Management (CRM) software: CRM software can help you track customer behavior, purchases, and interactions with the business. Many CRM systems also have analytics tools that can provide you insights into your customer behavior.
E-commerce platforms: E-commerce platforms such as Shopify, WooCommerce, and Magento have built-in analytics tools that can track customer behavior and purchases. These tools can provide insights into customer behavior.
Google Analytics: Google Analytics is a free analytics tool that can be used to track website traffic and customer behavior. Setting up goals and funnel can help you rack customer behavior, including repeat purchases, and calculate RROC.
Analytics tool: an analytics tool that can help you on tracking customer behavior and engagement. It can provide insights into your customer lifetime value, retention rates, and RROC, among other metrics.
How often should you check Revenue from Repeat Online Customers?
The frequency of checking revenue from repeat online customers can depend on various factors such as the size of your business, the frequency of customer purchases, and the amount of revenue generated from repeat customers.
However, as a general guideline, it is recommended to check revenue from repeat online customers on a regular basis, such as weekly or monthly.
Checking revenue on a regular basis will help you monitor trends and identify any changes in customer behavior. For example, if you notice a sudden drop in revenue from repeat customers, it may indicate that something has changed in your business or that your customers are no longer satisfied with your products or services.
Revenue from Repeat Online Customers Calculator
Do you want to calculate your revenue from repeat online customers? Use our simple calculator below.
Simple Revenue from Repeat Customers Calculator
Revenue from new visitors:
Revenue from Repeat Customers:
Important Things about Revenue from Repeat Online Customers
Here are some important things to keep in mind about revenue from repeat online customers:
Reliable source of revenue: Repeat online customers are a valuable source of revenue for your company because they have previously expressed an interest in your products or services by making a purchase. They are more likely to make additional purchases, resulting in a consistent flow of revenue.
Less expensive to retain customers than to acquire new ones: Acquiring new consumers can turn out to be costly, especially when you include the expense of advertising and promotion. Retaining existing consumers, on the other hand, is frequently more cost-effective because they already know and trust your brand.
Indicator of customer satisfaction: Customers who return to your website and make additional purchases may indicate that they are happy with your products or services. If, on the other side, you notice a decrease in repeat business, it could mean that there are flaws with your client experience that need to be addressed.
Identify your most valuable customers: Tracking revenue from repeat customers could help you in determining which customers are most valuable to your business. This data can assist you in developing targeted marketing efforts and loyalty programs to keep these key customers.
Metrics related to Revenue from Repeat Online Customers
There are several metrics related to revenue from repeat online customers that businesses can track to help monitor and improve their performance:
Repeat Purchase Rate
The percentage of customers who make more than one purchase from your website.
The percentage of customers who stop using a product or service over a given time period.
Keep your customers like as if you own them. Care for them and value them so they would stay with your business.
Also, you can try integrating email marketing automation to keep in touch with your customers. Although if you want to level up your marketing game, choose Vibetrace and experience its features that will help you optimize your email marketing campaigns.
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