A fast-growing consumer electronics brand launched with great success. The marketing team received high praise from top-level management as customers flooded in during the first few years, driven by millions spent on paid ads. However, frustration soon set in among the leadership team as the bottom line began shrinking due to alarmingly low retention rates.
Nearly 80% of customers made only one purchase and never returned. Meanwhile, customer acquisition costs (CAC) kept rising, eating into profits. Every quarter, the company had to spend even more just to maintain revenue, turning the business into an unsustainable money pit. It became clear that repeat purchases were the key to sustainable growth.
Since retaining a customer is 5–7 times cheaper than acquiring a new one, customer retention is essential for long-term profitability. By increasing repeat purchase rates and focusing on lifetime value, the brand could build a solid foundation for improved retention.
Many global brands including Amazon, Nike, Starbucks, and Sephora—have successfully implemented retention-focused business models, leading to compounded revenue growth over time. Let’s take a closer look at how these brands are winning with repeat purchases.
Global Brands Winning with Repeat Purchases
1. Amazon Prime Membership & Subscription Services
Amazon’s Subscribe & Save feature plays a crucial role in driving customer retention while significantly reducing remarketing costs. This program allows customers to schedule recurring deliveries of essential products at a discounted rate, creating a habitual buying behavior.
For example, Schwartz Bioresearch, a seller on Amazon, saw its repeat customer rate jump from 10% to 30% after integrating Subscribe & Save. Furthermore, Amazon Prime subscribers spend nearly twice as much as non-Prime customers, highlighting the effectiveness of Amazon’s subscription model in fostering long-term customer loyalty and increasing purchase frequency.
Amazon Membership Benefits: Encouraging Repeat Purchases & Building Customer Loyalty.
2. Apple’s Ecosystem Lock-in & High Retention Rate
Apple has mastered the art of customer retention through its seamlessly integrated ecosystem across hardware, software, and services. By ensuring that its products (iPhones, MacBooks, iPads, Apple Watches) and services like iCloud and Apple Music, work effortlessly together, Apple creates a lock-in effect that encourages repeat purchases.
This ecosystem strategy, combined with continuous innovation and top-tier customer service, has resulted in an impressive 90%+ customer retention rate. Apple’s approach proves that when convenience, innovation, and brand loyalty intersect, repeat purchases become second nature for customers.
Apple’s strategy revolves around creating a seamless ecosystem of products and services, driving repeat purchases, fostering brand loyalty, and enhancing community engagement.
3. Nike’s Loyalty & Personalization Strategy
Nike’s Membership program is a benchmark for loyalty rewards, particularly in the e-commerce space. By offering exclusive discounts, early product drops, and members-only perks, Nike incentivizes customers to make frequent purchases.
A key aspect of its strategy is personalization, Nike uses customer data to recommend products, create targeted offers, and enhance the shopping experience. This approach has been instrumental in maintaining a strong retention rate while significantly reducing dependency on third-party retail sales.
Nike shapes customers’ habitual behavior by the reward premise: “The more active you are, the more you get rewarded” (Nike News, 2018).
Nike’s Membership Program: Key Benefits & Business Impact”.
Source: Reward World
4. Starbucks Rewards & Personalization
Starbucks’ Rewards Program is one of the most engaging and widely adopted loyalty programs in the world. The program, which is free to join, allows customers to earn “Stars” for every purchase, which can be redeemed for free drinks, food, and other exclusive perks.
For many Starbucks enthusiasts, collecting Stars has become an obsession, encouraging repeat visits. The program also integrates seamlessly with the Starbucks app, allowing members to reload funds using a digital Starbucks card, further increasing customer stickiness.
As of Q3 2024, a report by Starbucks stated that Starbucks Rewards 90-day active members in the U.S. reached 33.8 million, marking a 7% year-over-year growth, proving the effectiveness of their retention-driven business model.
Starbucks Rewards Program: Driving Customer Loyalty and Increasing Sales
Source: Starbucks Malaysia
5. Sephora’s Beauty Insider Loyalty Program
Sephora’s Beauty Insider program is one of the most talked-about loyalty programs in e-commerce, offering a tiered membership system that encourages customers to spend more and earn better rewards.
As of 2025, Sephora’s net worth stands at $24.66 billion (Net Worth Spot), a testament to the success of its retention strategy. Here’s how the tiered system works:
Beauty Insider (Free to Join – Entry Level)
✔ Free mini beauty products as birthday gifts
✔ Point-based rewards (1 point per $1 spent)
✔ Exclusive discounts and early access to new products
VIB ($350 Annual Spend)
✔ All Beauty Insider perks
✔ Earn 1.25 points per $1 spent
✔ Bigger birthday gift options and exclusive full-size rewards
✔ Early access to promotions & sales
Rouge ($1,000 Annual Spend – Highest Tier)
✔ All VIB perks
✔ 1.5 points per $1 spent
✔ First access to major sales
✔ Free custom makeovers & exclusive VIP events
In addition, members enjoy points multiplier events, free shipping perks, and exclusive Sephora credit card rewards, making it one of the most rewarding and engaging loyalty programs in the beauty industry.
Sephora’s Beauty Insider Program: Encouraging Repeat Purchases, Boosting Cross-Sell Revenue & Fostering Community
The Transformation: Implementing a Repeat Purchase Strategy
Remember that growing consumer electronics brand? The one we introduced earlier, realizing the importance of repeat purchases, studied these industry leaders to uncover their secrets to success.
Their biggest takeaway? These companies didn’t just focus on selling great products, they mastered customer retention. More importantly, they prioritized Customer Lifetime Value (CLV) over first-time sales.
Instead of continuously burning money on paid ads to acquire new customers, they shifted their focus to keeping the ones they already had a strategy that ultimately led to higher profitability and long-term sustainability.
Top strategies to drive repeat purchase.
To turn things around, the electronics brand restructured its approach by implementing these key strategies:
1. Launching a Loyalty Program
- Customers earned points for every purchase, redeemable for discounts and exclusive products.
- Using behavioral analytics (via Netcore Cloud), they could track user activity and send personalized communications with relevant discount triggers.
- Predictive insights helped them identify customers most likely to churn, allowing for timely re-engagement.
2. Introducing a Subscription Model
- They bundled products and offered device protection plans, increasing recurring revenue.
- Content marketing strategies were used to educate customers about the benefits of subscriptions, driving engagement and long-term value.
3. Personalizing Customer Experiences
- AI-powered recommendation engines segmented customers based on past purchases and preferences.
- Custom email campaigns and VIP-tier rewards made repeat buyers feel valued.
4. Focusing on Community & Advocacy
- They encouraged user-generated content, product referrals, and social proof to strengthen customer trust.
- Customers were given incentives for leaving reviews and sharing their experiences, turning them into brand advocates.
The Future of Repeat Purchases: A Marketer’s Top Priority
According to the Loyalty Trends 2025 report, improving Customer Lifetime Value (CLTV) has become the #1 priority for marketers, rising from 36.1% in 2021 to 60.4% by 2025.
The second most important priority? Reducing customer churn.
Brands that prioritize repeat purchases over constant acquisition will dominate their industries, driving higher profitability, sustainable growth, and a more loyal customer base.
Conclusion
The biggest lesson from Amazon, Apple, Nike, Starbucks, and Sephora is clear: Growth isn’t just about getting new customers, it’s about keeping them. Enterprises that embrace these principles will future-proof their business, while those that ignore customer retention will struggle to survive in an increasingly competitive market. Get a custom roadmap for repeat purchase success. Speak to our experts and tailor these strategies to your unique business model.
