B2C marketers are beginning to realize THE one metric to measure is repeated purchase rate. Repeat purchase rate is the most important key performance indicator (KPI) because research has shown that most of a company’s revenue comes from just a small fraction of the customer base. In fact, researchers found that a small group of loyal customers can drive almost half of a companies overall revenue. However, most marketers are still too focused on new customer acquisition. While the acquisition of new customers is still vital, the easiest way for a B2C company to increase revenue is to boost second (and third) purchases. So, it’s time to realize that repeated purchases significantly increase company revenue which makes it the KPI for marketers to pay attention to.
As repeat purchase rate gains the respect it deserves, marketers will eventually stop wasting time on activity metrics like clicks, and views. Success is not about activity but about what drives revenue and makes money. How much revenue can be attributed to a certain campaign? Is the campaign increasing the repeat purchase rate? The KPIs that matter focus on tangible revenue-based outcomes instead of vain activity-based metrics.
To increase the repeat purchase rate as well as other revenue-boosting indicators, marketers have to take full advantage of new tools, tactics, and channels. For instance, with the help of big data analytics, they can optimize the precision of their customer targeting. However, because the human brain can’t possibly succeed to use the millions of online interactions that give away users’ preferences, attitudes, habits, desires, and feelings to connect the right customer to the right product or service, the solution comes in the form of smart machines.
Social networking platforms and search engines have been using user data for that purpose very lucratively for a long time but with recent data abuse scandals there is new regulation emerging, and, above all, the demand for a more ethical use of personal information and big data.
The solution comes in the form of a blockchain-based user profiling platform called BehaviourExchange which set out to turn the tables on the customer-marketer relation.
Online visitors who chose to reveal their demographic characteristics, personality traits, and interests to the platform are rewarded with BEX tokens they can use for online shopping. The AI-based software analyzes the data to create virtual user profiles and then in real time adjusts the content of a website according to the visitor’s interests, wishes, and needs. Users stay in possession of their profile in the form of a blockchain and can at any given time decide not to reveal it to the system or not. This way, the BehaviourExchange platform creates a new marketing paradigm where marketers can use very comprehensive user data while users retain control and benefit from the exchange. Visit the official website to find out more about the project and follow BehaviourExchange on Facebook for more interesting digital marketing stories!