The True Value of Repeat Customers
Are you focusing your marketing efforts on just acquiring new customers? Then, there is a huge chance that you are doing it wrong! Because you are completely ignoring your returning buyers. Did you know they can be your hidden goldmine?
A recent research says that it takes anywhere between 3 to 5 years to successfully create a strong customer base consisting 25% of repeat customers. So, are you investing resources to cultivate customers into not just buyers, but beyond?
Returning customers are invaluable to a business
25% to 40% of the total revenue of most stable businesses comes from returning investments. Did you know? Furthermore, steady customers help businesses to weather the lean economic times.
Given below are some more reasons to focus on the happiness of your repeat customer's
1· Costs less to convince them : It requires less capital and time investment to convince past customers to purchase again than it is to get new customers. With clicks and conversions in the online world getting expensive by the day, you need to concentrate on your repeat customers to add value to your business. For better returns on investment, focus on existing customers.
2· They promote your business for you : Needless to say, word of mouth advertising is the best form of advertising, even in this digital age and time. Repeat customers are happy with your products or services. So, if you continue to keep them happy, there is a high chance that they will recommend you to people they know. It is almost like free marketing! As customers who have used your products or services promote you to people they know, you can be rest assured of increased sales and revenue.
3· Rise in the number of transactions : As mentioned above, existing customers do not need a lot of convincing to purchase again. They just need a little push, which can come in the form of an irresistible offer, discounts, combo deals or a new product. They are more likely to spend more on their second, third and fourth purchases as compared to first-time buyers. So, it is simple. Get a customer to stick with your brand for longer and they will spend more. Studies suggest that from the 1st to the 10th transaction, a repeat customer is likely to spend 80% more.
4· Assistance with product expansion : Are you planning to introduce a new product or service? You can greatly make use of the insight and feedback provided by your existing customer in the initial product planning stage and also after. This is how repeat customers can prove to be of extreme value to your business. You can ask for their opinion and know what kind of product or service they are expecting from you. Also, they might be the one to sign up to an exclusive list to test the product or service first. The best part of repeat buyers is that they will always be open to trying out new products that you have to offer. This is because they are already satisfied with the quality of your product or service and are willing to take a chance with you, rather than trusting some other brand.
5· Gain a deep understanding of your target market : All the information demographics, buyer interests and consumer behaviors is that you need to grow your business will be provided by your existing customers. Instead of going through the trouble of investing a lot of time and effort in doing market research, you can straight away ask your existing customers. You can get direct feedback from them or use the information from your customer database, social media pages, Google Analytics and so on. Once you recognize the pattern, you will be able to engage and satisfy your customers better.
Hoping that now you have a fair idea about the value of existing customers. You must especially focus on getting them back again and again. To top it all, repeat customers are a reflection of a strong brand loyalty and follower that your business enjoys. So, if you haven't already, it is time for you to start focusing on your returning buyers. They will take your business to the zenith of success.
What are you doing to retain your existing customers? Is there any special tactic or strategy that you are focusing on? Do you think repeat customers hold any value for your business? Please feel free to share your thoughts and suggestions.