Post-Purchase refers to everything that happens after a customer completes a purchase.
It encompasses all the stages from when customers buy something to after receiving and using the product or service.
This period is crucial in determining the overall customer experience and includes actions such as order confirmation, shipping and delivery notifications, customer support services, handling returns and exchanges, and soliciting product or service feedback.1
Visual Representation:
Purpose:
The primary purpose of managing the post-purchase phase effectively is to ensure customer satisfaction, build loyalty, and create a foundation for repeat business.
It aims to minimize potential issues that could lead to customer dissatisfaction and address them proactively to maintain a positive brand image.2
Benefits:
Effective post-purchase management has numerous benefits, including increased customer retention, higher customer lifetime value, positive word-of-mouth referrals, and reduced return rates.
It also contributes to building a strong brand reputation and enhances the overall customer experience, which is crucial for business success.3
Usage:
Businesses across various industries prioritize the post-purchase phase by implementing customer support systems, feedback mechanisms, and engagement strategies.
They use post-purchase communication to educate customers, provide additional value, and promote related products or services, ultimately driving additional sales and customer loyalty.
Example:
A classic example of post-purchase engagement is Amazon’s follow-up emails after a purchase.
Customers receive updates about their order status, estimated delivery time, and information on how to return or replace items if necessary.
Additionally, they receive personalized product recommendations based on their purchase history, encouraging repeat purchases and enhancing the overall customer experience.4
Related Terms:
References:
1. Enisa. (2022, April 14). Post-purchase behavior: The key to repeat purchases. Loop Returns. https://www.loopreturns.com/blog/post-purchase-behavior/
2. Han, H., & Ryu, K. (2012). The theory of repurchase decision-making (TRD): Identifying the critical factors in the post-purchase decision-making process. International Journal of Hospitality Management, 31(3), 786-797. https://www.sciencedirect.com/science/article/abs/pii/S0278431911001599
3. Khan, M. (2004). Consumer behaviour. NAI Pub. https://www.amazon.com/Consumer-Behaviour-Matin-Khan/dp/8122415318/
4. Rants, B. (2023, January 24). What every retailer can learn from Amazon. Cordial. https://cordial.com/resources/what-every-retailer-can-learn-from-amazon/
