Turning new visitors into returning visitors

 New vs. returning visitors

            What exactly classifies a visitor as either new or returning? As one might have guessed, a new visitor is someone that has never landed on a site. A returning visitor is an individual that has returned to a Website after visiting once before. While there are exceptions to these definitions (which will be explained later on), these are the most basic explanations for each type of visitor. These metrics are considered part of the the visitor characterization category of Web metrics.

Google Analytics

            Tracking visitors (both new and returning) can be done using Web analytics, most commonly Google Analytics (GA). While the basic definition of these metrics seem self-explanatory, Google Analytics has more specific qualifications for each. New visitors qualify as anyone who has never been on a Website before, according to Google Analytics tracking snippet (Malnik, 2020). Google’s tracking snippet is important because it relies on the presence of cookies. The tracking snippet looks for tracking cookies whenever a user visits your Website. Two results can happen when tracking occurs. If a cookie is present, Google considers this a ‘returning’ user and starts a new session (Hotjar Ltd., 2021). If a cookie is not present, Google creates one and considers this a ‘new’ user (Hotjar Ltd., 2021). Unfortunately, non-present cookies can lead to a misrepresentation on Google Analytics reports of how many actual new and returning visitors a Website has.

Challenges

According to Malnik (2020), there are a few ways that a returning visitor can be mistaken for a new visitor. The first way is if a person is on a Website in incognito or private browsing mode (Malnik, 2020). This mode hides information from GA so it’s unable to detect a returning visitor. Next, if a person visits your site initially from a laptop, then browses the same site later on their smartphone, they will be counted as a new visitor (Malnik, 2020). In order to record that user as a returning visitor, he/she must be logged into Google Chrome on both devices (Malnik, 2020). Since Google’s tracking snippets only last for two years, a person who returns to a site any time after those initial two years will be counted as a new visitor (Malnik, 2020). Lastly, Malnik (2020) states that if a person visits a site, and then clears their browser cache before viewing it again will be counted as a new visitor.

Why it matters?

            With the challenges and misinterpretations mentioned above, the real question is why even measure? What is the point if a business might not see the exact percentages and numbers of new or returning visitors? The answer is simple; returning visitors are easier to convert. Returning visitors tell a business how well a campaign has performed, who its loyal customers are and how powerful its brand is.

            Measuring new and returning visitors is especially important for ecommerce sites. Stephan Serrano (2018) explains that in a study conducted by Barilliance, it was discovered that returning visitors:

• Added items to carts 65.16 percent more than first time visitors,
• Converted 73.72 percent more than first time visitors,
• Spent 16.15 percent more per transaction.

Figure 1 shows the difference in the add-to-cart rate for ecommerce sites for new and returning visitors. Serrano (2018) states new visitor’s added items to their carts on 4.84 percent of sessions while returning visitors added an item to their cart 8.26 percent of the time – which is a 70.6 percent increase on average.

Figure 1

New vs. Returning Customer Add-to-Cart Rate

Reprinted from Serrano, S. (2018, February 19). [New Study] New vs Returning Customers eCommerce Behavior. Retrieved from Barilliance: https://www.barilliance.com/new-vs-returning/

These statistics clearly state that it is important for businesses to know who their returning customers are and to engage with them more often in order to keep them coming back.

When a business understands who its returning customers are and why they are important, it can further nourish its relationships with them. Personalization and customization of Websites is important to consumers. People want to feel understood and important and when a company can personalize and customize its Website, it can help feel that way. A study conducted by Accenture Interactive (2018) found that 91 percent of consumers are more likely to shop with brands who recognize, remember, and provide relevant offers and recommendations. The study also discovered that 58 percent say they are more likely to buy if presented product recommendations based on past purchases (Accenture Interactive, 2018). Measuring returning visitors is important because it can help a business improve the user experience and make it easier for a customer to convert.

Transitioning new visitors into returning visitors

            Now that it’s clear why new and returning visitors should be tracked and measured, it’s time to discuss how a business can increase returning visitors. Engaging content is one of the easiest ways to increase returning visitors. An engaging Website should contain relevant information, interesting and appropriate Web designs, videos or graphics, etc. Not only should content be interesting and relevant, it should be published frequently. New content will keep visitors coming back; they’ll want to check out the latest products, blog post or service. If a visitor finds that a Website does not meet his/her needs or isn't engaging enough, a business needs to reevaluate its site content and revise accordingly. Aazim Akhtar (2020), a contributor for MonsterInsights, provides additional ways to increase the rate of returning visitors:

• Start an email newsletter,
• Increase social media following,
• Create a push notification list, 
• Start a customer loyalty program,
• Run retargeting ads.

Conclusion

            New and returning visitors are an exciting yet easy metric to track and measure. These metrics provide businesses with valuable insights about its visitors and Website. Returning customers are key to keeping a business in business and understanding the needs of those customers will only improve its relationship with them.

References

Accenture Interactive. (2018). Personalization Pulse Check. Retrieved from Accenture: https://www.accenture.com/_acnmedia/pdf-83/accenture-making-personal.pdf

Akhtar, A. (2020, November 19). 7 Proven Ways to Increase Your Returning Visitor Rate. Retrieved from MonsterInsights: https://www.monsterinsights.com/proven-ways-to-increase-your-returning-visitor-rate/#:~:text=It%20usually%20depends%20on%20the,re%20in%20the%20perfect%20situation.

Hotjar Ltd. (2021, January 18). Google Analytics users. Retrieved from Hotjar: https://www.hotjar.com/google-analytics/glossary/users/

Malnik, J. (2020, June 24). New vs. Returning Visitors: What’s the Right Balance & Does It Even Matter? Retrieved from Databox: https://databox.com/new-vs-returning-visitors#head1

Serrano, S. (2018, February 19). [New Study] New vs Returning Customers eCommerce Behavior. Retrieved from Barilliance: https://www.barilliance.com/new-vs-returning/