New York — Furnishings retailers in the e-commerce space that cultivate their customer base are being rewarded with the promise of repeat purchases.
The Bluecore 2022 Retail Ecommerce Benchmark Report found that online home goods retailers, a group that encompasses chain store furniture retailers and some home décor sellers as well, saw the percentage of shoppers who will likely buy again increase from around 12% with the initial purchase to more than 52% by the sixth purchase based on buying history.
Every subsequent purchase further enhances the chance for additional ones, according to the report, demonstrating the importance of fostering loyal shoppers to drive revenue.
The study — which looked at 35.5 billion campaigns in 2021 delivered to shoppers via global retail brands’ emails and e-commerce sites and the resulting actions taken by shoppers — also showed the majority of retailer shoppers were first-time buyers.
Within the home goods category, 68% were first-timers to a brand, the highest among all the verticals tracked, including apparel, consumer electronics, footwear, gifts and floral, health and beauty, jewelry and luxury, and sporting goods and outdoor.
The percentage of one-time buyers who made a repeat purchase in the home goods category was around 6% vs. the high of about 8.5% for health and beauty. Gifts and floral saw the lowest percentage of conversion (1.6%), indicating shoppers are less engaged with gift brands and more likely to seek alternatives when an occasion arises.
The report looked at different shopper lifecycles as well. Shoppers classified as at-risk — meaning those who have deviated from their typical buying cycle and may not purchase from a site again — are still converting and clicking at rates that are nearly comparable with active shoppers, Bluecore noted, signaling retail brands have an opportunity to hold onto these consumers with the right messaging and could bring them back into active status.
Consumers who create a wish list are the most likely to convert that desire into a purchase and boost their cart size. The study points out that once brands know what a shopper is seeking, they should devise strategies to show them related products to maximize the sale.
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I'm Joanne Friedrick, research editor for the Home Furnishings Division. I began my career as a newspaper editor and then became a trade journalist, covering myriad industries including pension funds, supermarkets, gourmet food and security systems, just to name a few. Most recently, I entered the home furnishings category as a contributor for HFN and Home Textiles Today before transitioning into research where I now get to tell the stories behind the numbers for all of the HFD titles.
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