What Is A Lapse Point In E-commerce?
In the world of e-commerce, there's always something shiny and new around the virtual corner. Keeping a customer's attention and encouraging repeat business is one of the major challenges every retailer must overcome. For every business, there's a point at which they lose a customer for good if they haven't brought them back in for a repeat purchase. We refer to this as the "lapse point."
Maintaining a successful online business is a complex juggling act. Not only do you have to do the work of setting up and maintaining your site, you also have to manage inventory, craft compelling copy, figure out the best marketing avenues, create advertising, build email campaigns, keep an eye on your social media profiles, work out shipping issues, and so much more.
Where To Start
If your lapse point is the number of days after which a customer is likely never to purchase from you again, your first step is to calculate that point by looking over your Repeat Customer data and the average time between purchases.
If a customer hasn't returned to your site before your lapse point, then they've likely moved on to another retailer and you probably won't get them back.
For example, a cosmetics e-tailer will most likely have a shorter lapse point than a business that sells clothing, and the clothing business will likely have a shorter lapse point than a company selling expensive electronics.
The reality of the situation is pretty straightforward: if a customer hasn't returned to your site before your lapse point, then they've likely moved on to another retailer and you probably won't get them back. There are several ways to bring past purchasers back into the fold, including:
Retargeting Campaigns for E-commerce
Using cookies to target customers who have visited your site but didn't make a purchase. Don't let them forget about you and entice them to come back!
Social Media Targeting
You can target users based on everything from demographic to purchasing behavior and adjust your advertising efforts accordingly. You can also create lists based on your email data to specifically target past customers and remind them that you exist.
Email Segmentation
Dividing your email list into different segments allows you to target specific groups with tailored advertising. When you reach out to your past customers, take some extra time to research what brought them to you in the first place and what's likely to bring them back.
Remember, someone who has previously purchased from your business is multitudes more likely to buy from you again than someone who's finding you for the first time. Don't let your lapse point go by without coming up with a plan of action.
Need help digging into that data? We might know a guy. (It's us. We're the guy. Reach out.)