As a business, ensuring your revenue increases is of paramount importance. While new customers are great for increasing revenues, repeat customers are the ones responsible for bringing in a large percentage of those monies.
A recent study showed that most successful ecommerce businesses have between 25% to 30% of their revenue coming in from repeat customers. If your business isn’t seeing those many repeat customers coming in, you probably need to pay attention to your customer’s post-purchase behavior.
Join us as we take a quick look at what post-purchase behavior is all about, and why it is crucial to increase revenues.
What is post purchase behavior?
Post-purchase behavior, as the term implies, is simply how a customer feels and behaves after they make a purchase. Ideally, this behavior ought to lead to the customer coming back to your business for another purchase.
The importance of observing post-purchase behavior
A first time customer buying a product from your business is just the start of your relationship with them. When you pay attention to their post-purchase behavior, you can help create positive customer experiences.
Post-purchase behavior gives you insights into your product’s performance, your customers’ expectations and what you ought to do to ensure repeat business.
For example, a customer who has had a negative experience with your brand may want to not only return the product, but also leave you negative reviews.
Paying attention to post-purchase behavior allows you to proactively address these shortcomings, effectively salvaging your relationship with the customer and also building trust to ensure repeat business.
On the other hand, a happy customer is likely to promote your brand within their circles and buy from you repeatedly.
Possible outcomes of post-purchase behavior
Irrespective of your target demographic or what your product/service is, there are only three possible outcomes of post-purchase behavior.
If your product meets or exceeds the customer’s expectations, pat yourself on the back because you now have a happy customer.
If your product did not deliver what was promised, the customer is likely to experience “buyer’s remorse”. In other words, you’re going to have an unhappy customer. This is also known as post-purchase cognitive dissonance. In this case, you will need to replace the product or refund the customer in order to save your relationship with them.
Irrespective of whether the customer was a happy customer or one that needed you to proactively repair or refund their purchase, their experience with your brand ought to be positive enough to lead to the third outcome, the customer coming back to your brand for future purchase.
This outcome ought to be the end goal of all product purchases, and is known as customer loyalty.
How to measure post-purchase experience
There are multiple ways to gauge whether you have happy customers or not. Online reviews are one of those methods. Others include loyalty programs and customer satisfaction surveys.
However, a scientific approach to measuring a customer’s post-purchase experience is by using returns tracking and analytics software.
This software is easy to integrate into your existing tech stack, and gives you insights into why people want to return purchases, how many returns are customer initiated, which category of products have the most returns and cost analysis of processing returns.
Create an unparalleled post-purchase experience with Dyrect
We at Dyrect can help you create an unparalleled post-purchase experience for your customers. By giving you access to invaluable first party data, we make it easy for you to engage with your customers on multiple channels. This enables you to offer extended product warranties and upsell related products.
We also make aspects like product registration, getting access to product information and more available at your customer’s fingertips. And by using Dyrect to offer your customers an efficient and transparent warranty claims process, you can greatly reduce post-purchase cognitive dissonance.
Book a demo with our experts today to learn more about how you can leverage Dyrect to take customer satisfaction to the next level and as a result, see a definite increase in revenues.
Summary
As a business, your relationship with a customer does not end when they buy a product from you. What they do post-purchase plays a huge role in ensuring repeat business and in increasing revenues.
In this short but informative piece, we take a look at what post-purchase behavior is. We also discuss the importance of studying post-purchase behavior, what the possible outcomes are and look at the most effective way to measure post-purchase behavior.
