By Keith Donoghue | WBN News - Vancouver | August 25, 2026
Editor: Karalee Greer Subscription to WBN and being a Contributor is Free
Retail Growth Does Not Always Require More New Customers
A Vancouver retailer enters January with hundreds of customers acquired during the holiday season. Instead of continuing those relationships, the marketing budget immediately shifts toward advertising for another group of new buyers.
The previous customers receive their receipts and little else.
That approach overlooks one of the most valuable assets already inside the business: people who have demonstrated a willingness to buy.
Repeat Customers Can Deliver Disproportionate Revenue
Research associated with Bain & Company has found that acquiring a new customer can cost substantially more than retaining an existing one. Its research has also linked a 5 percent improvement in customer retention with profit increases ranging from 25 to 95 percent.
E-commerce data reinforces the point. Gorgias analyzed more than 10,000 Shopify merchants and found repeat customers represented approximately 21 percent of customers while generating 44 percent of revenue and 46 percent of orders.
A relatively small group of returning customers can therefore account for a much larger share of sales.
The Second Purchase Is A Critical Opportunity
The period immediately following a first purchase provides retailers with an opportunity to build the relationship while the customer still remembers the experience.
Research compiled by Sender found personalized post-purchase communication was associated with a 45 percent higher second-purchase rate compared with customers receiving no communication.
This does not require constant promotions. A retailer could automatically send a thank-you message after purchase, useful product information several days later, and a relevant follow-up after two weeks.
Once established, the workflow can operate consistently without employees remembering to contact every customer manually.
Why It Matters
For Vancouver retailers facing higher advertising and customer acquisition costs, existing customers deserve greater attention.
The business has already spent the money required to earn the first purchase. A strong post-purchase process helps protect that investment and creates another opportunity to generate revenue from a relationship that already exists.
Growth is not always about reaching a larger audience. Sometimes it starts by giving existing customers a reason to return.
Keith Donoghue | WBN News Keith Donoghue is the founder of Highridge AI Consulting, helping Vancouver small businesses reduce manual work and run more efficient operations.
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Editor: Karalee Greer Subscription to WBN and being a Contributor is Free
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