How to Improve the Customer Experience and Drive Repeat Sales

Learn how Amplitude can help marketers derive value from existing customers with personalization.

September 6, 2023
Image of Darshil Gandhi
Darshil Gandhi
Principal Product Marketing Manager, Amplitude
A graphic representing a video about driving repeat purchases with Amplitude

Acquiring new customers is expensive. When budgets are tight, marketers can optimize their resources by focusing on deriving value from existing customers. According to Mckinsey, the best way to do that is with experience-led growth: Proactively and consistently providing an excellent customer experience.

But to improve customer experience and satisfaction, companies need to build better products and digital experiences.

Personalization is a key part of that enhanced experience. In the Salesforce State of the Connected Customer report, 88% of customers say the experience a company provides is as important as its product or services, and 73% said they expect companies to understand their unique needs and expectations.

Amplitude helps marketers drive repeat purchases from existing customers with personalization. This post will show you how.

Key takeaways
  • Personalization is crucial for enhancing customer experiences.
  • Amplitude gives marketers the insights they need to tailor their efforts to different customers.
  • With Amplitude, marketers can:
    • Re-engage dormant customers with targeted marketing campaigns.
    • Optimize offers and discounts by using predictive analytics to target customers most likely to buy.
    • Personalize product recommendations for individual customers based on their preferences.
  • Brands such as Rappi (a delivery app), Jersey Mike's Subs (a sandwich chain), and Restaurant Brands International (the parent company for several iconic quick-service restaurant chains) have used Amplitude to personalize experiences for their customers.

Bring back lapsed customers

Amplitude enables you to see which customers return across a specific period and which remain dormant. From there, you can run targeted marketing to win back those customers.

Let's say we're on the marketing team for a grocery delivery company, and we want to see how many customers were dormant (didn’t complete any actions in our app) during a month. In Amplitude, we can create a Retention Analysis chart and set the starting event to “complete purchase” and the return event to “any active event.” We also select the time period, for example, 30 days.

Amplitude then shows us how many buyers churned over those 30 days.

A retention chart showing how many shoppers have lapsed since purchasing

This retention analysis shows that by day 30, the churn rate is 37%. Try it yourself in our free demo experience.

From there, we can click to create a segment (or “cohort”) of those dormant buyers we want to win back. Then, we can sync that cohort out of Amplitude to email marketing tools or ad networks like Braze, Klavyio, Facebook, and Marketo to send targeted campaigns.

Case study: Rappi

Before using Amplitude, the team at Latin American delivery app Rappi could only send a couple of mass campaigns to all their new users each month. They now use Amplitude to automatically segment their audience based on factors defining their first-time user experience. They send the cohorts to Braze and deploy different campaigns customized to each segment.

Rappi's targeted marketing drove a 10% increase in the number of users who complete a first-time order, a 30% decrease in their cost of acquisition, and a 5% decrease in their activation costs for paid channels.

Send offers only to those most likely to buy

Offers and discounts encourage buyers considering a purchase to make it through checkout. But usually, some guesswork goes into deciding who to send the offers to. With Amplitude, you can optimize your offers, so only send them to those customers who are most likely to buy.

Amplitude's Predictions, powered by machine learning, use past data to predict future outcomes.

A screenshot showing how to define a future outcome when creating an Amplitude Prediction

Define the outcome—such as “complete purchase”—and the timeframe when creating a prediction.

For example, we can rank our customers based on the likelihood they will buy in the next 90 days. Instead of sending a promo code to everyone, we can select the top 10% of most likely repeat buyers and only send it to them.

Predictions also work for other desired outcomes. From activation to retention to lifetime value (LTV), Amplitude will build cohorts of users most likely to achieve that outcome in just a few minutes.

That allows marketers to do things like:

  • Personalize ad campaigns for users most likely to buy
  • Send email campaigns to the customers who are most likely to retain
  • Share in-app offers with customers who have the highest predicted LTV
Case study: Jersey Mike's

Sandwich chain Jersey Mike's uses the predictive cohort feature in Amplitude to identify the users who are most likely to convert or complete a desired event. They then use Iterable to send tailored messaging and incentives to those users.

According to Kelly McGee, director of digital marketing at Jersey Mike's, using cohorts in Amplitude helps "keep conversion rates high and speak to our most loyal customers in a personalized way."

Personalize product recommendations

Every customer is different, and Amplitude enables you to personalize customer experiences.

Let's return to our grocery delivery example. Our shoppers have different preferences, so we want to send them appropriate product recommendations. For instance, we don't want to send meat or dairy offers to prospective vegan buyers.

In Amplitude, we can build an AI-based recommendation. Recommendations in Amplitude are similar to predictions, but they work for each individual item in the catalog. They rate the buying likelihood of each individual item for each individual.

A screenshot of how to create a list of personalized item recommendations

Create recommendations based on the desired action you want your customers to perform, like completing a purchase.

Once you know which items will most likely increase conversion for each customer, you can suggest those products to them. Use the Amplitude user profile API to optimize the next best actions in your offers and digital experiences. For example, you can run an email campaign with item recommendations based on your customers' tastes.

Case study: Restaurant Brands International

Restaurant Brands International (RBI) is the parent company of Burger King, Popeyes, Tim Hortons, and Firehouse Subs. The team at RBI used insights from Amplitude, alongside Snowflake, to build their Suggestive Sell Engine application.

The app uses historical purchase data to suggest additional purchases. For example, if someone orders a burger on the Burger King app, website, or at a drive-through, it'll suggest the side that people usually order with that specific burger.

Aryan Naraghi, head of data analytics at RBI, explains that Amplitude is easy to use. "Whether or not they're a data scientist, anyone in the company can stitch together pieces of information from different analytics tools and systems, reconciling various data sources to craft clear and comprehensive stories about our business," he says.

Turbocharge your marketing budget with Amplitude

Amplitude gives marketers the insights and data they need to pull the largest ROI from their budget. To learn more possibilities, view our monetization hub or get started with Amplitude for free.

About the Author
Image of Darshil Gandhi
Darshil Gandhi
Principal Product Marketing Manager, Amplitude
Darshil Gandhi is a Principal Product Marketing Manager at Amplitude. He leads global technical marketing and collaborates with product and go-to-market teams on strategy, positioning, messaging, campaigns, and enablement. He was previously a solutions consulting team principal, and has helped dozens of Amplitude customers turn their data into actionable insights. He enjoys showcasing the power of Amplitude's platform to connect digital bets into valuable business outcomes. Darshil graduated from Dartmouth College with a Masters in Engineering Management.