It is exciting when your business gains a new customer, however, it should be even more exciting when your business gains a repeat customer. The success rate when selling to a repeat customer is 60-70% whereas the success rate when selling to a new customer is 5%-20%, shared by Huify. This statistic highlights just how important it is to build a roster of repeat customers as it will bring in more revenue. This article will look into how you can build a roster of repeat customers, and the benefits that it will bring you.
A repeat customer is a customer that has already purchased a product or service at your business and is once again making a purchase. This is also known as customer retention, where a business builds a long-term relationship with its customers to create a steady revenue stream from loyal customers.
By retaining customers to get repeat purchases, your business gain a lot of benefits:
This section will look at each of these benefits in detail.
A statistic highlighted by business shares is that returning customers spend 67% more than new customers. Returning customers spend more than new customers because they will already have a relationship with your business, meaning that they will have a high level of trust leading them to make more expensive purchases. As a result, your business will generate higher revenue from these customers.
When your business has a high number of returning customers, you will be able to save costs in the marketing areas of your business. Fewer resources will need to be dedicated to the marketing department as returning customers will help the brand and contribute to the marketing of your business, and a steady stream of revenue will mean you will not need to prioritise gaining new customers. Obtaining returning customers is always less costly than gaining new customers.
Repeat customers will help your business’s brand image by giving you better public relations. This is because when customers like your product or service and have built trust and a relationship with your business, they will be likely to recommend your business to people and also leave positive feedback and reviews on social media. This means that through word of mouth your brand image will improve, attracting new customers and helping growth and revenue.
An important factor in every business is stability. This allows a business to continue to grow at a steady pace that is easy to forecast while having less risk of challenges occurring. Repeat customers will help bring this stability to your business. Your business will have a steady stream of revenue from repeat customers meaning you will have more stable growth in your business as opposed to growth only occurring when you attract new customers.
Loyal repeat customers will give your business cross-selling and up-selling opportunities. Cross-selling is when your business has the chance to offer customers products or services that complement their original purchase, while upselling is when you give the customer the opportunity to upgrade their original purchase. Loyal customers will likely respond well to these and as a result, your business will generate more revenue.
To build a roster of repeat customers, there are some areas in your business that you must focus on and some methods that should be used. You should:
This section will go through why each of these points is important to build your roster of repeat customers.
Customer service is a critical aspect of the number of repeat customers your business will get. This means that is very important for your business to put a big emphasis on providing good customer service to your clients. Solving queries in a streamlined way, knowing your customers well and providing them with a good, personalised service should be the main focuses to provide your customers with a good service. As a result, customers will build a strong relationship with your business, and you will leave a good lasting impression on them.
Introducing customer loyalty schemes is a very useful technique in getting repeat customers. A customer loyalty scheme is when a business will introduce an added incentive for customers to stay loyal to their business and make repeat purchases. An example of a popular customer loyalty scheme is the introduction of memberships. A membership can give customers special perks when shopping with you, such as discounts. A business that has a very successful membership loyalty scheme is Amazon with Amazon Prime. When a business introduces this, existing customers will stay with the business and make repeat purchases, increasing the revenue and profitability of your business.
Getting customer feedback can have massive benefits for your business, allowing you to evolve things to improve the experience for your customers. This will result in your customers getting more satisfaction from your customer service and getting more value out of the experience. Your business will increase its customer retention from this which will lead to more growth and higher revenue.
TEB is a sales automation CRM software that will help your business build a large roster of repeat customers. There are multiple stand-out features that TEB possess to help your business retain customers and increase your revenue. These features include:
To find out more about how TEB will help your business create a roster of repeat customers and more, schedule a demo with us and see first-hand how you can grow your business.
