Did you know that it costs far more for your business to acquire a new customer than to encourage repeat sales from existing customers?
While it is important to attract new purchasers, that shouldn’t be the sole focus of your marketing campaigns. Repeat business is easier to obtain and provides a higher return on investment.
Nurturing your existing customers to encourage repeat business results in reduced marketing costs, increased sales, positive word of mouth marketing, and all the benefits of a loyal customer base.
But there’s a lot more to repeat business than just creating a satisfying customer experience.
Read on to find out how to keep them coming back for more!
Effective Ways To Encourage Repeat Business
Why Is Repeat Business Important?
A study by Marketing Metrics revealed that there’s a 5-20% chance of selling something to a new prospect, compared with a 60-80% chance of selling to an existing customer.
Considering that it costs more to target potential customers, and that there’s a lower chance of converting them to buyers, it makes sense to target the low hanging fruit that is repeat business.
Encouraging repeat business is more affordable and more achievable, but there are other benefits besides, including:
- Word of mouth promotion – loyal customers are more likely to recommend your business to friends and family, giving you free advertising.
- Higher profits – people are more likely to spend more money with businesses they trust. Repeat customers have a higher average order value than first-time purchasers. One study showed that a 5% increase in customer retention leads to 75% increased profitability for businesses!
So, it’s clear that repeat business is vital. Now, let’s look at how to encourage it.
Ways To Keep Customers Coming Back For More
There are a number of effective ways that you can encourage repeat business with your customers. They are:
Gather your customer info
First things first: it will be hard to stay connected with your customers if you don’t know how or where to connect with them! Sure, you can hope they follow you on social media, but there are no guarantees. Make the most of your website by encouraging visitors to submit their names and email addresses in a pop-up or subscription form.
Providing something of value (a discount or exclusive product) can help sweeten the deal. Once you have their contact details, you can get to work building those valuable relationships.
Start a loyalty program
A customer who is part of your loyalty program is 47% more likely to provide repeat business than other customers. Plus, loyalty programs have the pleasant knock-on effect of increasing the average transaction amount.
A loyalty program doesn’t have to be complicated. Simply gather your customer’s information, provide them with a specific account number or card, and provide “points” for every purchase.
Offer referral bonuses
First time buyers are more likely to make a purchase if a business has been personally recommended to them by a friend or family member. Take advantage of this by offering your customers incentives for referrals, then encourage them to make those referrals too.
Personalise your customer service
Nobody wants to feel like “just a number.” Your audience want to be treated as individuals; they want to be remembered and appreciated. Personalisation significantly increases the chance of repeat business. Personalise emails to greet people by name and create tailored product suggestions or promotions.
Offer exclusive discounts and promos for repeat business
Even if you don’t have a loyalty program, you can entice your existing patrons to make another purchase by sending out discounts from time to time.
Nail your email marketing
Email newsletters are a great way to connect with your audience, but email has much more to offer. Set up automated email retargeting to bring people back to your business, such as abandoned cart or incomplete purchase emails.
Listen to your customers
Most customers are happy to provide feedback on your products and services. Show them you care about their opinion by giving them that option. You can do it by setting up a simple customer survey or even doing mini-surveys on social media. You can also encourage them to leave reviews for your business on various channels so that others can see their thoughts publicly.
Connect on social media
Businesses need to stay visible by maintaining an active presence online. Social media is ideal for interacting with existing clients and attracting new prospects. Post relevant, useful, authentic content consistently, and take time to engage with your audience on your various channels.
Provide exceptional service
Of course, one of the most fundamental ways to earn repeat business is to provide fantastic service and make sure every customer walks away with a smile. Think of ways to go above and beyond for your customers. Often, it’s the little touches that will stick in their minds and keep them coming back for more.
Start with a great platform
It is hard for customers to shop with you again and again if your website is not user friendly. So, make sure you start with a great eCommerce site to make it easy for your customers to give you repeat business. If you are worried that your website is not giving your customers the best impression, then reach out to us today. We specialise in creating high converting Shopify websites that encourage that all-important repeat business!