Read time 3 minutes
Exclusive Forrester Report on AI in Marketing
Key takeaways:
Optimove Insights defines One-Timers as “customers who placed their first order but did not make an additional purchase within one year.” The percentage of one-time customers varied widely across industries and operators, ranging from 15% of monthly customers who make only one purchase to as high as 60% of monthly customers. The difference is likely to be driven by product category (e.g., shoppers are likely to buy perfumes and colognes infrequently because they last a long time and are relatively expensive, compared to shampoo or makeup remover wipes that are used daily or weekly and need frequent replenishment), marketing strategies, and customer engagement efforts.
Optimove Insights analyzed data from over 3 million fashion and beauty e-commerce customers between November 2022 and October 2024 to uncover insights for boosting loyalty and improving retention. It found that most customers make their second purchase within a critical window shortly after their first transaction. Specifically, 39% of first-time customers make their second purchase within the first month, and 62.5% do so within the first three months, as shown in the chart below.
To capitalize on these insights, marketers can motivate one-time customers to make subsequent purchases within the first three months with exclusive offers, limited-time discounts, and promotions.
Optimove Insights also found that returning customers consistently have a higher average monthly order value compared to one-time shoppers. On average, the order value for one-time customers is 23% lower than that of repeat buyers, emphasizing the significant financial benefits of fostering customer loyalty, as shown in the chart below:
If marketers can convert one-time fashion and beauty customers into multi-time customers, this will increase lifetime customer value. This post will show the value of multi-time customers and give tips on driving customer loyalty and increasing profits.
Here are four retention strategies to strengthen customer relationships and boost loyalty this holiday season:
According to Optimove Insights, it is clear that unlocking loyalty early not only boosts retention but also creates a foundation for long-term profitability and deeper customer relationships.
For more insights on how to turn one-time holiday shoppers into multi-time customers and increase customer lifetime value, contact us to request a demo.
Exclusive Forrester Report on AI in Marketing
In this proprietary Forrester report, learn how global marketers use AI and Positionless Marketing to streamline workflows and increase relevance.
Oren is a Marketing Research Analyst on the Professional Services team at Optimove. In this role, Oren focuses on extracting actionable marketing insights by researching and analyzing customer data for retail and gaming clients. Additionally, Oren is pursuing an industrial engineering and management degree at Shenkar College.
