Survey: Retailers employ tech to avoid ‘one and done’ shoppers
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Return customers are the lifeblood of retail, as demonstrated by a new survey from Ordergroove and Napco Research.
According to the survey, “Retail 2019: The Year of the Recurring Revenue Model,” 83% of surveyed retailers agree that converting “one and done” buyers into recurring customers is “very important.” As part of this effort, 65% of respondents offer subscription programs, with another 22% considering adding them in 2019.
Eighty-six percent of respondents offering subscription programs said subscription customers are “more satisfied” than other customers.
More than half (54%) of respondents said they expect “significant growth” in revenue in 2019 and beyond from recurring customer purchases. A majority of respondents cited benefits from recurring revenue programs, including greater revenue (67%), greater profitability (61%) and greater predictability (50%).
Retailers are also aware of tech-enabled solutions their competitors are using to create recurring customer revenue. Seventy-one percent of respondents said their competitors offer subscription programs, while 70% said competitors offer one-click reordering. Other popular competitor offerings include memberships (62%) and gift box programs (59%).
The survey was conducted by NAPCO Research in November 2018 among close to 300 retailers.