Did you know that up to 40 percent of total revenues of many stable companies are the result of repeat business? This bit of information was shared by New York-based analytics company, SumAll, which also stressed the importance of repeat customers. According to SumAll, businesses with 40 percent repeat customers have the power to generate 47 percent more revenue than companies that only had 10 percent returning clients. While it’s important for any company to attract new clients, keeping old customers is just as crucial.
Given the critical importance of repeat customers in securing business stability, here are some guidelines in making sure that your buyers don’t remain one-time customers.
Strive for Consistency
At the heart of a business that has the advantage of repeat customers are excellent products and top-notch services. However, this consistency should extend to your competitive advantage as well. If your business is well-known for its affordable prices, strive to be consistent with your competitive rates. If your restaurant is known for its extra-attentive waiters, make sure that you don’t fail your customers in terms of service. These small but distinct advantages over the competition have the power to pull in your customers again and again, generating repeat business for your company.
Build Personal Relationships
In order to build relationships with your customers, you need to interact with them. This is why you need to allocate part of your marketing budget for returning customers. Get to know their wants and offer them something that satisfies their desires. You also need to give personalized attention to your loyal clients, whether through a free gift, a promotional gift card or a rebate promotion. Many companies forego shipping fees for their returning clients or provide them with VIP treatment when they visit the stores. While these strategies require additional marketing expenses, the ROI is often favorable. Customers who feel appreciated are more compelled to buy repeatedly and stay loyal to the brand.
Design Promotions for New Customers
Although it’s reasonable to focus your reward programs on loyal customers, designing promotions for new customers is just as important. For instance, you can incorporate wholesale gift cards into your rewards program to attract new and old customers alike.
One of the results of SumAll’s study showed that customers who purchase just once have a 27 percent possibility of buying the second time. This makes the first transaction highly important. And it’s even better when you have customers that buy from you more than three times. SumAll’s analysis has shown that fourth-time buyers have a 59 percent chance of transacting with your company again.
Repeat customers are not just people who keep buying your products; they also serve as brand ambassadors, promoting your company to their circles and beyond. By providing top-quality products and consistent services, as well as designing a creative and engaging customer loyalty program, you will ensure a one-time customer becomes a loyal, repeat customer.
Planning to use bulk gift cards as a way to entice repeat customers? Work with us at Mpell Promotions so we can get started on your gift card promotions program today.