Architect Use Case: First Time Buyer to Repeat
- 12 Jul 2023
- 6 Minutes to read
Architect Use Case: First Time Buyer to Repeat
- Updated on 12 Jul 2023
- 6 Minutes to read
Article Summary
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Existing loyal customers are a lot more likely to convert compared to the first-time buyers as they often spend more on your website than the first-time buyers. Hence, they create more value for your company than one-time buyers ever could. What’s more, there is no additional customer acquisition cost. To make your customers loyal, the second purchase is a crucial milestone on the customer journey.
However, long-lasting loyal customer relationships are not built overnight. You can invest in first-time buyers as a strategy to increase your brand loyalty and revenue by making them your brand enthusiasts.
Strategies on First Time Buyer to Repeat
Before designing your ‘First Time Buyer to Repeat’ journey, you can go over some strategies:
- Recommend similar or complementary products they might be interested in after the first purchase.
- Offer discount to drive users to second-purchase.
- Analyze the time duration between the first and the second purchases in general.
- Create a cohort chart to see which of your product categories drive the second sale most.
- Use the Likelihood to Purchase segment in your journey.
- Send timely marketing messages to meet the right customers at the right time in the right channels.
- Plan including the offline store sales into your strategy.
Goals
Converting your first-time buyers with a journey helps you boost the Customer Life Time Value. Each targeted and converted user will help you increase:
- Retention rate,
- Brand loyalty,
- Conversion rate,
- Revenue and revenue per customer,
- Purchase frequency.
Requirements
- Insider Tag Integration for your website.
- Your website must have a cart structure where information about cart items is available.
- Cart items and purchase information must be collected. Once your website is mapped by Insider during your onboarding, Insider starts to collect this information by default. This does not require any additional integration.
- All objects under Insider Object Integration must be implemented for the cart items and purchased items to be tracked.
- Before starting to use any channel in your journeys, integrations for the respective channels should be completed. Depending on the channels you want to use in your journeys, additional integrations might be required.
- If you have a mobile app, you should have SDK integration completed.
- In case you require some custom events, you need to create and pass them to Insider.
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Read more on the implementation guide.
How to Create a First Time Buyers to Repeat Journey
You can create a ‘First Time Buyer to Repeat’ journey to boost your CLTV and revenue. For example,
Rachel has bought shoes from your brand today. She feels excited and checks the mailbox frequently until they arrive. You take a proactive action and send her recommended products with a discount offer to drive her to the second purchase after her first delivery. Because you know the later action you take after the first order, the more difficult it becomes to nudge her to make a second purchase.
Then, you check if she makes a second purchase. If yes, you send out thank you message. If not, you follow up her with some incentives.
1. Select On Event Starter
On Event starter tracks user events and takes them immediately on the journey when the users perform the specified event. You can take users on the journey when they sign up to your platform and if they made a purchase in a specified period.
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Selecting only the Purchase event in the starter might be a wrong segmentation for your use case. Because the user might have made a purchase before and you have not store it in your database or passed it to the Insider database before. Thus, you might not know if the purchase is the first one. Sign-up activity together with the purchase event can help you to filter users accurately.
You can select the sign_up_confirmation event and segment the users according to purchase activity in Optional Segment Filters.
If you want to filter your users having bought from a specific category, you can add event parameters. For example, if you know buying denim drives the second purchase mostly, you can filter users who have bought denim.
On Event starter considers every platform to take users such as website, mobile app, offline data which is passed by Upsert User API. For further information, refer to On Event.
On Past Behavior is a lookback window to take users into the journey. You can segment your users with the sign-up and purchase activity. For further information, refer to On Past Behavior.
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If you want to consider users who have already signed up and made the first purchase, you can select On Past Behavior.
Add Flow Logics
Communication with first-time buyers is time-sensitive in terms of making them repeat customers. Before sending a message, you might want to define the timing strategy:
- Sending a promotional message right after the user places an order:
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You can directly add a channel after the starter.
- Sending a promotional message right after the user receives the delivery:
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You can add the Wait for Event element to keep users on hold until the user receive the delivery
- Sending a promotional message after a period of time:
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You can add the Wait for Some Time element.
Read more on Wait Elements.
After the wait duration, you can check if users make a purchase again before sending a message. If they have made, they will go down to the ‘not matching’ path and complete the journey.
You can filter your user with "Likelihood to Purchase" predictive segment. So, you can contextually personalize the message/experience for users who are high or low likely to purchase. For example, you can maintain your relationship with the users who are 'low likelihood to purchase' by providing them some guides, or new campaigns. So, you can keep reminding them your brand. For further information, refer to Check Conditions.
You can also check if the users are reachable on a channel. If not, you can try another channel on another path. Read more on Check Reachability.
Also, you can use Next Best Channel to increase the possibility of engagement.
2. Content
After deciding how to continue with the communication for the first-time buyers to repeat, you can design your content by adding Email, SMS, WhatsApp, App Push, Web Push, Facebook, On-Site, and In-App. To maximize conversion to the second purchase, you can:
- enable Sent Time Optimization in channels to increase message open or click rate.
- recommend similar or complementary products they might like after the first purchase.
- show top-sellers in your content.
- offer a discount by using Coupon Code to drive users to second-purchase.
App Push
Email
Advanced First Time Buyers to Repeat Journey
Some brands send the message right after the first purchase while others wait until after customers receive the delivery or wait for around one week to pass. To define the optimal time of sending a message, you can utilize A/B Split Auto Winner Selection and you can let the journey calculate what works for you best. For example, in general, products with a shorter shelf life, such as socks or t-shirts, will always be purchased on a more frequent cadence than durable, long-lasting products like tires or leather jackets. You can also experiment with the messaging timing for your different product categories on the different paths.
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For further information, refer to A/B Split
The default goal is the purchase activity. As the user will enter the journey when they make a purchase, the second purchase will be attributed to your conversion metric. So you can see how many second-purchases your journey contributes. Read more on Analytics Dashboard.
Example Flow
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