The True Profitability of Repeat Customers & How You Can Do It!

You spend all your ad ringgit on acquiring new customers, and you were hoping that this could maximize your outlet’s revenue.  So, you spent months putting together an epic campaign, setting up cool acquisition events, and promoting to the masses through social media platforms.

It all sounds massively impressive, but the truth is that the new customers you attract are not as going to be as profitable as the existing base of customers you have.

How do we know? We’re just a mobile wallet, right?

But let us explain. We know because we’re in the business of customer retention! We’re in the business of understanding your target audience. (Read about us in our first blog post here)

Of course, customer acquisition plays an important role in the big picture, because you can’t have a repeat purchaser if one doesn’t make that first purchase! The problem is that most businesses commit 70% of their marketing expenses to new customer acquisition and the retention strategy gets tossed in the back-burner.

In every database of consumers you have, 10% is made up of your repeat customers, and trust us, they’re extremely profitable! But do you know why?

Let’s visit our Kiple stats and we will give you 4 reasons to believe in this!

1 – A Repeat Customer IS a Repeat Customer!

You might be thinking – why tell me a no-brainer? I know this already! Based on our research done on our current pool of merchants + Kiple user base, we’ve discovered that a customer becomes more likely to buy from you again & again the more they frequent your store!

The more times your service excels and meets their expectations, they’re more likely to return, and the greater their potential lifetime profitability becomes! If you want this to be a continuous cycle – you need to design retention strategies to make sure they return, but you’ve got to be wary of ‘short-term’ methods used to lure them.

You might think that a ‘discount’ works, but a customer who gets a discount the 2nd time, would expect it the 3rd time, and the moment you halt the discount strategy, that’s when you’ll experience a downhill in your sales.

You’d need to incorporate long-term customer retention strategies – and that’s how Kiple can help. Read about it here.

2 – A Repeat Customer Already Believes in You!

Conversion rates vary by industry, and there are no easy benchmarks. The average conversion is stipulated is at 1-3%, but a repeat customer is actually more likely to convert than first-time customers. What we’ve witnessed via Kiple, is that a repeat customer has 50-60% chance of converting compared to newbies – which means you don’t even have to try so hard.

repeat customer higher chance of conversion

Do you know what this means? The increasing number of repeat customers you have, the less you have to spend on your ad ringgit!

3 – Repeat Customers Spend More on Each Purchase, Each Visit!

What we’ve discovered: not only do they return more – repeat customers tend to spend more than your new customers on each purchase! Your loyal top 10% spend 3x more per purchase than the lower 70%, and your top 3% of customers spend 5x more than the lower 90%.

Refer to the image below for an approximate gauge based on our Kiple market study:

probability of another purchase

4 – Repeat Customers Create a Ripple Effect for Your Store!

Malcolm Gladwell was so spot-on with the ‘Law of the Fewin his book – The Tipping Point – With repeat customers, you are not aiming the masses, you are not speaking to people who feel ambivalent about you. Repeat customers are made up of mavens, connectors, and salesmen.

Not only are repeat customers more valuable, they also provide you with some a huge marketing ripple effect. A repeat customer gives your store positive word-of-mouth advertising, which is the best kind of advertising.


Law of the Few



Each time a customer makes a purchase at your store, they are getting more comfy with you, they are starting to trust you, and hence, more willing to make a positive recommendation. This recommendation process can be further amplified and monetised by encouraging referrals with Kiplekash rewards as part of a customer retention tool (find out more about our member-get-member loyalty programme here.

Repeat Customers are Important

There are a ton of tools that can help your retention efforts, like Mailchimp for your retention emails, Zendesk , for customer relationship management, or Kiple for creating an engaging customer loyalty program through our exclusive vouchers & deals specially tailored for your target audience, accompanied by a 10% rebate system.

Start aiming for a tangible customer repeat rate of 10-20%, and you will see an increase in your store’s profitability!