The return visit rate refers to the percentage of new users who visit the store again. In other words, the return visit rate is also an indicator of repeaters.
There are various indicators related to products and customers in store operations, but why is the return visit rate important?
In the first place, repeaters are customers who are familiar with products and services and who use them repeatedly. In other words, because we already know the value of our products and services, they will continue to generate sales.
It also introduces products and services to acquaintances, and has the potential to have a ripple effect on sales.
With that in mind, it is important for each store to consider an approach that encourages customers who have visited the store to visit the store next time.
However, it is not possible to tell whether or not a customer is a repeater just by looking at each customer. It can be said that we cannot confirm that the approach we have taken is working.
Therefore, it is necessary to confirm with the index of return visit rate so that the existence of repeaters can be analyzed.
If the return visit rate is high, it will lead to continuous purchase of products and use of services, so it will be easier to predict profits in half a year, next year, and next year. The return visit rate index will also be useful in confirming the stability of store operations.
Calculation method for return visit rate
There are two indicators for the return visit rate: the repeat rate and the repeater rate. Let’s understand each calculation method and understand the difference.
The repeat rate refers to the ratio of repeat customers to the number of new customers and can be calculated as follows.
Repeat rate = number of monthly repeats ÷ cumulative number of new customers x 100
For example, let’s say 40,000 new users have visited your store since it opened. In that case, assuming that the number of users who returned to the store this month was 8,000, the repeat rate can be calculated as follows.
Repeat rate = 8,000 people ÷ 40,000 people x 100 = 20%
If the repeat rate is high, you can judge that the customer has a good impression of the product or service.
The repeater rate is the ratio of repeaters to the number of customers in a month and can be calculated as follows.
Repeat rate = number of repeaters per month ÷ total number of customers per month x 100
For example, if you have 2,000 repeat customers this month and 8,000 customers this month, you can calculate the repeater rate as follows.
Repeater rate = 2,000 ÷ 8,000 x 100 = 25%
A high repeater rate may seem like a good operation, but a 100% repeater rate means that there were no new customers.
Of course, increasing new customers also leads to increased sales, so it is important in management to increase new customers while analyzing the repeater rate.
Reasons for the decrease in the return visit rate
After calculating the return rate, some people may not get the desired results. Even if you take measures without thinking enough, the return visit rate will not necessarily increase. First of all, I will confirm the reason why the return visit rate will decrease.
Reason 1. Financial stress
If the stress of paying money is higher than the stress of worries and issues that you want to solve, it will not lead to the use of products and services, and the return visit rate will decrease.
Sometimes it is necessary to review the benefits of products and services. It is also effective to set a discounted price according to the repeat, in addition to the regular price.
Reason 2. The target is blurry
If the target is not narrowed down, it may be difficult for people to feel the need to use products and services, and it is difficult to connect to the store again. On the other hand, if you become aware of the need for products and services, you will be more likely to come back to the store.
Reason 3. Get bored with products and services
It is quite possible that you will get bored if you continue to purchase and use products and services that you temporarily liked. Therefore, in order not to lower the return visit rate, it is necessary to devise measures such as preparing limited-time menus and seasonal menus.
Ideas to increase the return visit rate
1. Introduction of membership rank system
The higher the quality of your products and services, the more likely you are to return to your store, but without proper follow-up, your competitors can lose your customers. From here, let’s think about ideas to increase the return visit rate.
You can increase the return visit rate by giving members the status of rank.
For example, the point return rate increases according to the rank. It motivates users to purchase and use products and services at a better price, and makes users aware of raising their ranks.
Regarding the conditions for raising the rank, it will be easier to increase the return visit rate by visualizing and determining the factors related to store visits.
The higher the quality of the products and services that can be acquired, the more motivated you will be to return to the store. If you want to increase the return visit rate, you may want to improve the membership system while referring to the cases of major commercial facilities.
2. Utilization of customer service
If there are problems or issues with the product or service itself, it can be said that the return visit rate will naturally decrease. Therefore, in order to increase the return visit rate, it is important to improve products and services by referring to customer opinions.
Therefore, the use of customer service should be noted. Analyzing service questions and consultations can help improve.
However, some stores may not avoid time because they may accept consultations and questions that are not important in customer service. Recently, an automatic conversation program that utilizes artificial intelligence has appeared, and it has become possible for humans to answer questions on behalf of humans.
If you use chatbots to establish a customer service system, it will be easier to collect the concerns of really important customers. Why don’t you consider introducing it if necessary?
This time, we introduced the calculation method and the method of increasing the number of repeaters, including an overview of the return visit rate. Perhaps some of you may want to know how to calculate the return visit rate and examples of the membership rank system, and immediately utilize it in store management.
However, the method of increasing repeaters is not limited to the introduction of the membership rank system. For example, you can create your own branded app and have your customers download it.
Every time you look at the store’s app on your smartphone’s home screen, you will be reminded of purchasing products and using services, so you can expect to be more likely to return to the store.
In addition, it would be effective to give a coupon that can be used at the next visit, have the next reservation date decided at the first visit, and guide the event to be held. Try to increase the return visit rate by the method that suits each store.