Creative Shop Talk Podcast Episode 166: Simple Sales Strategy Series: Return Customer Rate
With Retail Coach Wendy Batten
Listen on: Apple Podcasts |Spotify | Radio Republic | YouTube | PlayerFM | Stitcher | iHeartRadio
Show Notes:
You’ve made it to Part 4 of the Simple Sales Strategy Series! Today we are talking about Return Customer Rate.
So what is a Return Customer Rate? Your return customer rate is calculated by dividing the number of customers who have made more than one purchase from your store by the total number of customers you’ve had during a given timeframe. It’s the percentage of your customers who are coming back again.
Your POS system likely gives you this number. Keep in mind that figuring out your return customer rate isn’t a perfect science. Your POS system likely tracks return customers by the credit/debit cards they use, so customers who pay in cash might fly under the radar.
So now that you have your return customer rate handy, give it a quick analysis. At first glance, a high rate might seem like something to celebrate, but keep in mind that super high return rates might mean that you aren’t acquiring new customers. On the other hand, if our return rate is low, we might be acquiring tons of new customers but if they aren’t coming back we need to know why. Unfortunately, there is no ideal return customer rate, but much like the rest of this series, knowing and analyzing your return customer rate is super empowering and important to your marketing strategy and the tactics you put in place to achieve success in your strategy.
“[You need to understand]…where to spend your time and your energy…so that you are not just doing random acts of marketing.” – Wendy Batten
Your Homework:
So let’s recap: Know your numbers: Conversion rate, average order value, and return customer rate. Know how many people are coming into your shop. Identify where you want to improve your numbers and ideally what you want them to be. (This is your STRATEGY.) Next, attach TACTICS (how you are going to implement your strategy) and get to work implementing.
This is truly where the magic happens. Retailers who are intentional with their marketing strategies build strong, healthy businesses.
We are deep diving into all of this inside of my Retailer’s Inner Circle this month. As a member, you will have full access to all of my masterclasses, once-a-month group coaching, and a monthly Roundtable discussion with other members of the group. Plus, our Facebook community is vibrant with heart-centered business owners. It’s an incredible group of people who are always sharing ideas and helping out. I’d be honored to have you.
Additionally, I’ve added my course Foot Traffic Made Simple as a stand alone course! Find out more here.
Related podcasts we think you’d like:
Episode 165: Simple Sales Strategy Series: Increasing Your Average Order Value
Episode 164: Simple Sales Strategy Series: Foot Traffic and Conversion
Episode 163: Simple Sales Strategy Series: Where to Start
About Your Host, Wendy Batten:
In case we haven’t met yet, I’m Wendy, a small business coach and founder of The Retailer’s Inner Circle, where I help other independent shop owners learn how to gain the right business skillsets to see more profits, paychecks, and joy as they navigate running their retail business.
Through online classes, business coaching programs, speaking, and a top-ranked podcast, I’ve helped hundreds of retailers around the globe reclaim their dream and see the success they want from their beautiful shops. My signature private coaching community, The Retailer’s Inner Circle, has helped retailers around the world build their retail business skill sets and confidence.
I am proud to have been featured in several major publications, including my own business column in What Women Create magazine. I have been privileged to be a guest on top-ranked podcasts and sought-after as a guest speaker and teacher for several brands, associations, and communities that are passionate about the success of independent retailers.
When I’m not coaching, you will find me either DIYing and renovating my very imperfect old crooked cottage by the sea in the UNESCO World Heritage town of Lunenburg, NS, or blogging about our travel and RVing adventures and the weird fun things we get up to in our coastal village. I’d love to invite you to check out one of my free resources for real retailers at https://wendybatten.com/free-resources/
For more support from Wendy:
Retailer’s Inner Circle – Join Wendy inside the best retailer’s community
Wendy’s FREE Resources for shop owners
Hang out and connect with Wendy on IG
All of Wendy’s programs and services for shop owners can be found HERE.
Subscribe and Review in iTunes:
Are you subscribed to my podcast? If you’re not, I’d love you to consider it. Subscribing means you won’t miss an episode! Click here to subscribe to iTunes!
If you want to be more of a rock star, I’d love it if you could leave a review over on iTunes as well. Those reviews help other retailers find my podcast and they’re also fun for me to go in and read. Just click here to review, select “Ratings and Reviews” and “Write a Review” and let me know what your favorite part of the podcast is. So grateful for you! Thank you!
