Getting that Second Order Matters more than you think!
Getting from the first order to the second order is the biggest drop off point for most brands. The % repeat rate keeps getting better with every order placed by a repeating customer. He's 'falling' in love with your offering and might become a loyalist / advocate.
Say you start with 1000 Customers and 1_2 denotes the % repeat rate from the first to the second order :
0_1 = 1000 ( New Customers Acquired)
1_2 - 50% = 500 Customers
2_3 - 60% = 300?Customers
3_4 - 75% = 225 Customers
4_5 - 80% = 190 = ~19% of the original 1000 Customers
At 5 orders, you have a loyal customer who'll likely repeat a bunch of more times.
What if you cold move the 1_2 from 50% to 70%?
1_2 - 70% = 700 [Delta of 200]
2_3 - 60% = 420 [Delta of 120]
3_4 - 75% = 315 [Delta of 90]
4_5 - 80% = 252 [Delta of 62]
Overall - Additional Value[Delta] of 472 Orders, by gaining 200 extra 1_2 repeats.
Getting from the 1_2 deserves disproportionate amount of attention, for the compunding effect it can have downstream. Bonus - they'll come to your site directly remembering your brand / share word of mouth elsewhere.
How do you solve for 1_2? Great first experience and post-purchase engagement. More on that later.
What's your 1_2 Rate? How frequently are you watching it?
This is so well written. A classic example of identifying leaks at the very beginning.