Convert first-time buyers to repeat customers

Acquiring new customers everyday is physically and financially draining. Repeat purchasers save businesses and help them thrive. We get 50%+ repeat purchasers each month. How?

Mar 09, 2025

👋 Hola! Welcome to Out of Singapore. This is Shan and I am building Xandro Lab, a longevity science brand. I test, learn, and share business and marketing insights in this weekly newsletter.

Acquiring customers is expensive, but losing them is even worse. The average marketing cost per order for us is SGD 30, while for a new customer this is SGD 150. Simply put an old customer would cost around 15-20 per order, in terms of marketing cost. As you see, the cost of acquiring a new customer can be 5-10 times higher than retaining an existing one. That’s not all, repeat customers validate your product-market fit and drive organic word-of-mouth growth.

an elderly woman stands in front of a white board and says over and over again

For customers to return, the product or service must fit into a recurring consumption pattern. It could be a replenishable item, a diverse product range, or a service with ongoing needs. Brands that foster customer loyalty (via repeat purchasing behavior) see the greatest long-term success.

In today’s blogpost, I’ll explore why repeat purchases are crucial, how businesses can encourage them, and how we’ve achieved a 50% repeat purchase rate. It is structured like this -

Why do consumers return?
Why repeat purchasers matter?
How did we achieve 50% repeat purchase rate?

#1 Why do consumers return?

Here are some reasons for consumers to come back:

The product is frequently and regularly used – Consumables like supplements, skincare, and food items are often used daily and require replenishment. These products have a 30-60 day serving cycle. This ensures a predictable purchase cycle, keeping customers engaged. Other examples include skincare and makeup, pet food, household cleaning supplies and electronics accessories. Look around you - which items do you buy every few weeks or months?
You sell complementary products – A strong product ecosystem encourages cross-selling and experimentation. For example, a Nespresso machine needs regular coffee capsules purchase. We could start selling supplement accessories like pill boxes, functional food, health kits and diagnostic kits, wearable devices, anti-aging skincare and wellness accessories.
Your service is required frequently – Essential services like digital subscriptions, household maintenance, and space memberships ensure continuous engagement and repeat visits.
A strong brand community exists – Brands that foster communities (like Insta360, GoPro, Nike, and Puma) keep customers engaged through discussions, support, and shared experiences. Right now Insta360 has kept me amazed. Their community, social media, website and products all amaze me every single day.

Insta360 has created a well-rounded ecosystem of camera and accessories. Intelligent!

#2 Why repeat purchases matter?

Repeat buyers validate that a business is good. The more the scale of repeat purchases, the better the business is. Imagine a coffee shop vs Apple ecosystem consumers. The repeat base of apple ecosystem is million times more (yes you can say different categories, but the logic holds true).

Higher profit margins – Retaining a customer costs significantly less than acquiring a new one, making repeat purchases highly profitable. Did I tell you that new users cost 5-10 times more than repeat users?
Drives word-of-mouth marketing – Satisfied customers become brand advocates, referring new buyers organically. If a user feels convinced to buy a few times from you, they love you. They will reciprocate that love by sharing the benefits and products with their family and friends.
Validates product-market fit – A high repeat rate indicates customer satisfaction and strong demand. This gives the business confidence to invest in growth by launching new products resonating with demand.
Builds brand loyalty – The stronger the relationship with your customers, the harder it is for competitors to win them over. I have come to realise that consumers are larger than price and promotion. Building repeat purchases builds loyalty and creates friction for competition to poach them.
Creates a strong foundation for product innovation – A loyal customer base allows brands to introduce new products seamlessly, much like Apple’s ecosystem. It becomes a thriving ecosystem where the brands introduce new products and consumers support the business, thus both growing.

Do note that 50% repeat buyers doesn’t make sense if they are only 1000 users. First it needs to make sense from cost perspective - how much monthly do you need to keep the business afloat. Second, it needs to fit into your growth aspiration. If you are planning to build a 50 million monthly business, at least 30 mn or more should be from repeat buyers - based on your average order value, you can find out the number of repeat purchasers required to get to that scale.

#3 How did we get 50% repeat purchase rate?

a woman wearing a black shirt with butterflies on it says a repeating pattern with her hands in the air

At Xandro, we’ve built a highly engaged customer base with a strong repeat purchase rate. Here’s how:

Daily consumable products - Our products have a 2-3 month dosage cycle, ensuring a continuous replenishment cycle. Customers who see results are more likely to return and purchase again. More often, once consumers see results, they order more.
Gain trust and expand offerings - We have consistently delivered quality. Customers trust our brand enough to try new products. We the strategically introduce new solutions tailored to our audience’s additional needs. For example, we introduced Protocol X as an all-in-one longevity blend after we saw consumers buying multiple products from our selection instead of just one.
Omnichannel Presence - We are present everywhere our customers are—TikTok, Shopee, Amazon, our website, offline stores, social media, and email marketing. Livestreams, ads, social media -everywhere. This ensures top-of-mind awareness whenever they are ready to repurchase. We have built a strong presence with fitness creators - almost every trainer in Singapore works with us. Having said this, we are still missing out on YouTube, Red Note, and Lemon8.
Incentivized Retention - We offer promotions, store credits, and flash sales to encourage continued purchases. Value-driven offers create a compelling reason to stay loyal to our brand. We ensure that repeat purchasers receive much better value. As soon as you make a purchase from us, you get a thank you coupon on TikTok, Shopee and Website. These coupons are not 5 or 10 SGD, they are 50 to 100 SGD. High value coupons that is unheard of in the industry.

Have you noticed something else we have done, and I have missed mentioning? Let me know. 😍

Bonus: Industry-Specific Repeat Purchase Strategies

Each industry has unique ways to drive repeat purchases. Here are some key repeat strategies

Subscriptions – Ideal for products with predictable consumption cycles (e.g., supplements, meal kits, SaaS).
Loyalty Programs – Encouraging customers to earn and redeem points fosters long-term engagement. Valid for almost every industry.
Product Bundling – Offering discounts on complementary products can increase order value and retention.
~~Personalized Reminders~~ ~~– Automated restock reminders via email or SMS ensure timely reorders.~~ Instead of reminders, send them offers and new products along with a discount code. Consumers will buy. Restocks reminders have not worked for us.

a woman is holding a bottle with her mouth open and the words on repeat below her

Final Thoughts

Encouraging repeat purchases isn’t just about pushing sales—it’s about creating a seamless experience that keeps customers coming back naturally. Whether through product efficacy, strategic marketing, or community-building, brands that prioritize retention will always have an edge over those focused solely on acquisition. The key is understanding your product’s consumption cycle and implementing the right strategies to nurture customer relationships over time.

What strategies have worked for your business? Share your thoughts in the comments!

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I am seeing a gradual increase in the readership of the newsletter. It feels satisfying when more people read the newsletter. Thank you so much for you support!

Last 7 days was a Livestream marathon for us. We managed to do full-month of TikTok revenue in 7 days. This is a new milestone for us and I both happy and concerned for rest of the month. Concerned because I don’t want our BAU revenue to fall.

Physically the last week was extremely draining since I got no recovery time. It was 9 AM to midnight, every single day from 2nd March. By Friday, my body gave up. I was tired of listening to livestreams. It became too repetitive. While this livestream marathon was successful, there are lot of learnings that I need to improve for the next one.