skip to log on skip to main content
VoiceOver users please use the tab key when navigating expanded menus

Article | 3-minute read

Tips to improve purchase frequency

Cash flow forecasting | Cash flow improvement

Typically, the more often a customer buys from you, the more money you’ll make. Not exactly rocket science! But what isn’t as well known by many business owners is exactly how much of their revenue comes from repeat customers, and how to influence purchase frequency.

Measuring your customers’ purchase frequency

First things first. You need to know how often your customers are coming back to buy from you. This is known as purchase frequency. To determine your customers’ purchase frequency, you’ll need to gather some data. Using a fixed timeframe, say a year, divide your total number of orders by your total number of unique customers. You could do this for all of your customers or for a specific category or segment of your customers and then calculate the purchase frequency for each. Now you have a baseline, it’s time to improve it.

Ways to increase purchase frequency

It all comes back to the customer. What you’re really doing is building and investing in a long-term and valuable relationship with them. So, it’s critical that you know what they want, and when they are likely to want it. Once you know this, you can use this information to create effective marketing tactics. The more personalised your communications are, the more effective they will be, which in turn may lead to significant increases in repeat sales. 

Effective marketing tactics

Email marketing to your existing customers can be a very effective way to increase purchase frequency. They can be used to send reminders to customers when it’s time to repurchase, to provide helpful “how-to-use” content that could also increase usage and will keep your brand top-of-mind.

Retargeting ads can also be used to remind your customers about products they’ve previously purchased or expressed interest in. You can time these ads to coincide with the time your customers are likely to be ready to repurchase.

Improve customer satisfaction and loyalty

Remember, your relationship with your customers extends beyond the sale. Be ready to help them with any issues. Keep an eye on reviews – show gratitude for the positive ones and follow up on the negative ones. Exclusive discounts, VIP sales events and loyalty programs are all very effective ways to retain customers and encourage increased purchasing

Keep measuring and keep improving

Don’t do all this great work and then forget to check if it’s working! Re-measure your customers’ purchase frequency to see if there has been an uplift. Keep an eye on how your emails and ads are performing, so you can continue to optimise your marketing efforts. Take note of the initiatives that lead to an increase in purchases, and those that don’t. The more you can encourage your customers to purchase again and again, the more your revenue will thank you.

 

Next steps

 

Related articles

Tips for upselling and cross-selling

3-minute read

Upselling and cross-selling are powerful tools that can help you to increase your average order size and drive greater revenue. So, what does upselling and cross-selling involve?

Keep reading

 

 

What you should know to prepare for business lending

4-minute read

There’s no getting around it, applying for a business loan takes some serious preparation. And most of it needs to happen weeks or even months before you talk to your bank.

Keep reading

 

 

 

 

Related products

ANZ Next Step Business Loans

Affordable, flexible finance under the Australian Government’s  SME Guarantee Scheme.

  • Low variable rate loans
  • Borrow up to $1 million, secured or unsecureddisclaimer
  • No loan approval fee and no loan account fee
  • Vehicle & Equipment options available

Find out more

Business loans and overdrafts

Whether you’re looking to run the day-to-day or grow your business, our loans and finance could be the support you need to take your next step.

 

 

 

Find out more

Get in touch

Request a call back

Have us call you back to discuss your business needs

Leave your details

   

Talk to someone local

Chat with one of our local business bankers

Find your local business banker

   

Any advice does not take into account your personal needs, financial circumstances or objectives and you should consider whether it is appropriate for you.

ANZ recommends you read the applicable Terms and Conditions and the ANZ Financial Services Guide (PDF 104kB) before acquiring the product.

This page contains only general information which is subject to change and is not a substitute for commercial judgement or professional advice. This information does not take into account your personal and financial needs, particular objectives and/or circumstances, and you should seek appropriate independent advice (which may include property, legal, financial, taxation and accounting advice) before making any decisions, investing, or acting on it.

Tools, templates, checklists, and calculators (“ANZ Tools”) linked or referred to on this page, are only some of many ways to analyse a business or industry, or to assist your planning and business decision making. You should seek the assistance of your accountant, business or other advisor when either planning for or analysing your business.

To the extent permitted by law, all members of the ANZ group of companies, their employees, officers and contractors (“ANZ“), offer no warranty and disclaim liability or responsibility to any person for any actions, claims, costs, demands, liability, or direct or indirect losses or damage that may result from using or relying on the information set out in the anz.com pages or the ANZ Tools, and / or any act, omission or error, by any person in relation to them.  To the extent permitted by law, ANZ makes no warranty and has no liability in respect of your use and reliance. ANZ Tools are also subject in many cases to further specific cautionary wording and disclaimers which you should read.

ANZ tools, templates and checklists are only some of many ways to analyse a business or industry to assist your planning and business decision making. You should seek the assistance of your business advisor or accountant when either planning for or analysing your business' performance. To the extent permitted by law, ANZ makes no warranty and has no liability, in respect of your use of and reliance on these tools.

For a secured loan, you’ll need to provide security acceptable to ANZ, meeting ANZ’s requirements, including minimum security coverage and suitable location. Residential property can’t be used as security under the Government Guarantee Scheme. For an unsecured loan you won’t need to provide an asset as security, although a personal guarantee may be required (for example from company directors).

Back to top