What are Returning Orders?
Your Returning Orders metric tells you how many repeat orders you have come into your store on a daily basis. This means you have customers who have made a previous purchase on your site who are returning to make subsequent orders. When you view this metric in the scope of your overall marketing strategy, it should inform you on the efficacy of some of your moves. Are my retargeting ads working? Which products of mine are boosting customers’ likelihood of returning for another purchase? What is the LTV of these customers who are completing return orders compared to those who are not? How do I improve this? Monitoring your Returning Orders can open the door to finding the answers to these questions and more.
Why are Returning Orders Important?
Returning Orders is an important metric because it is a solid indicator of how often you are getting more value out of your customers. The basic principle of ecommerce remains; you want your customers to make purchases often. Connecting the dots between your ads, channels, and other marketing campaigns that are driving your already-acquired customers to return for more orders is a critical practice for the success of your store. Remember, acquiring a new customer can be at least 5x more expensive than retaining a current customer. Your Returning Orders metric helps you measure your performance in this respect.