Repeat customers are so valuable to your business and your bottom line.
Yet talking to a number of small businesses over the last couple of weeks many did not know how much of their sales come from repeat customers.
A couple however did and no surprise their businesses are doing well and their marketing efforts are paying off. The key reason is that they know and are not guessing why their repeat customers buy, what they buy and how often they buy.
They also knew the percentage of repeat customers versus new customers and what marketing activities were the most effective.
Reasons
Unless you are just starting out knowing this type information can provide insights into where you need to improve or continue what you are doing.
The reasons why they keep buying can be varied and it does depend on what you are offering. For example one reason could be the service delivery. Your customers know that you always deliver every time and this is what is important to them as just makes their life easier.
Or it could be that you offer them the first go at a promotional offer before the rest of their customers and this makes them feel special and they do like a good deal.
There are many benefits of knowing why your customers keep buying and here are a few:
Allows you to fine tune marketing tactics
If you do special offers, promotions etc, knowing which ones are successful in keeping your customers coming back takes out the guess work and allows you to fine tune and focus.
Helps keep price out of the relationship
If you have repeat customers especially over a long time then price does become less of an issue. This does not mean that you can hike up your prices; it just means that other areas of the buying decision have a higher importance.
Highlights key factors
Even if there is only a couple of reasons why they keep buying this information can be used when attracting new customers. One point to note with this is to be aware that these factors have been built up over a longer time as they develop a relationship with your business and products or services.
Stronger relationships
Customers who keep buying from you do have a closer relationship. This does not mean it has to be deep and meaningful but the longer the relationship generally speaking the more difficult it is for them to be enticed away.
So have a look at what is the split between new and repeat customers, their characteristics, what they buy, how often and why. Then you can make sure all marketing activities are focussed on ensuring they keep buying.
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Benefits of Having Customers Come Back Time After Time…
Repeat customers are so valuable to your business and your bottom line. Yet talking to a number of small businesses over the last couple of weeks many did not know how much of their sales come from repeat customers. A couple did and no surprise their b…
Good post Susan. Fantastic customer service/support is where most companies fail. They only look at the short term instead of long term and forget that one upset customer means you lose at least 10.
Catarina Alexon recently posted..James Bond to the rescue
Thanks for your comment Catarina. Your point about having a long term view is right and if more did this many of the problems could go.
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We should pay as much attention as retaining a good customer as we spend trying to get new customers. I recently called a company that I do business with. They had a recording that said sorry we cant take your call we are talking to new customers. I had to call 2 times to get a response.
You cant forget your old customers looking for new ones. The old ones can bring in new or scare away new.
Good reminder
Julia M Lindsey
Our Little Book
Julia M Lindsey recently posted..Become An Expert And Improve Your Bottom Line
Julia,
All you can say about the recording is at least it is obvious where their priorities are.
I wonder if they know the effect the recording has on current customers? Although we all say don’t forget current customers many still do and I am not sure what are the main reasons. This applies to small businesses as well so I would be interested in hearing what you think are some of the reasons for forgetting from your experience.
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