👉 Background: Temple and Webster is the Aussie online furniture store that started back in 2011, and listed on the ASX in 2016. It had one of the worst floats of the year after losing 90% of its share value in just 12 months. But during COVID, when online shopping was all the rage, Temple and Webster became the rage.

👉 What happened: Now, Temple & Webster’s CEO has reported revenue was up 26% to $498 million for the past 12 months which is pretty impressive considering the retail market overall is down around 4%.

👉 What else: In its first few weeks of FY25, Temple & Webster’s revenue was up 26% and next minute, its share price jumped 26%. Its big hairy goal is to hit $1 billion in revenue in the next three to five years and continue growing its number of orders from repeat customers.

What's the key learning?

💡Repeat customers are the backbone of sustainable growth for any business. Temple & Webster had over 1.1 million customers in FY24, of which 57% are repeat customers — that’s a jump from 54% in FY23.

💡Temple & Webster believes that over time they can make 80% of their purchases from repeat customers.

💡Depending on what industry you’re in, acquiring a new customer is anywhere from five to 25 times more expensive than retaining an existing one. So Temple & Webster and its investors are kicking back on a plush velvet sofa, knowing that their repeat customers are the sturdy legs keeping their profitability standing tall.