The topic of repeat customers proves that new isn’t always better. While retailers may believe that their work is done once a customer purchases a product, it is actually an opportunity for them to generate even higher returns.
Businesses that want to succeed in today’s market must understand the value of repeat customers and how to increase their customer retention rate. Repeat customers spend an average of 67% more than new customers, and acquiring new ones might cost five to ten times more than selling to an existing one.
We’ll dive into the importance of repeat customers and how you can get them to keep coming back.
Why Repeat Customers Are Important to Your Business
Customers that utilise your services regularly are known as repeat customers. Some of the benefits of repeat customers are
- They promote your business for free. Repeat customers are more likely to tell others about a favourite company. This method of word-of-mouth marketing is essentially promoting your company at no additional cost. Business owners can encourage word-of-mouth with repeat customers.
- Customer retention is cheaper than customer acquisition. Acquiring new consumers costs more time and money than having a client come back to your business. Instead of starting fresh with people who have never heard of your business, attracting a repeat customer back typically requires little to no more promotion.
- They are more receptive to new products or services. A returning client is already familiar with your company’s products, so when you ask them to test your newest offering, they typically respond enthusiastically. Repeat customers are better targets for new products or design updates as they have the most to gain from improved efficiency.
How to Get Repeat Customers
Provide Excellent Customer Service
Customer service is a critical part of any business. Maintaining relationships after a customer has made a transaction shows your commitment to their needs.
Focusing on new clients over old ones is a typical error. Many believe existing clients don’t need exceptional service because they already trust your company. Meanwhile, businesses prioritise first-time customers by going the extra mile.
But this mentality is to blame for customer turnover. You should always provide every customer with the finest service and never give your current consumers less attention than brand-new ones.
Meet Repeat Customers’ Demands
Retailers need to get the first step right before considering how to engage customers so they buy more. Ask yourself, are my products or services meeting my customers’ needs? After all, even if customers like your brand, if you don’t provide them with exactly what they want, they won’t keep buying from you.
Matching your offers to client personas is the key. To understand your audience’s problems and how to address them, you must conduct research, segment your audience, and speak with them. Your sales staff has to know whether they can actually offer a viable solution at every level.
When making improvements to your products and marketing them to the appropriate audience, take into account market trends and consumer feedback too.
Offer Discounts and Incentives
Everyone enjoys deals and promotions. This is why, if you haven’t already, you should offer discounts to keep your customers.
Offering discounts to new consumers may not be the best course of action if your margins are thin. But may still encourage new clients by giving them a discount after their initial purchase.
There are many discounting strategies you can utilise. For a positive initial impression of your company, you can offer special first-purchase discounts or free delivery. As an alternative, you might give discounts following the first transaction to encourage recurring business. This will incentivise them to buy more items overall. Try out several offers to see which is most beneficial for your company.
Use Repeat Customers’ Feedback to Improve Products
To enhance the customer experience, input from customers is crucial. You might not know exactly what your consumers want if you don’t get good customer feedback.
Because most consumers won’t approach you directly to request more features, client feedback has to be proactive rather than reactive. It is your duty to speak with them and enhance your products or services in accordance with their comments. Some of the best practices include
- Communicate proactively. Use a variety of contact methods, such as live chat, social media, or email surveys, to get feedback from your clients.
- Look for recurring trends. Following feedback collection, you must analyse them and look for recurring patterns to identify the improvements you need to make to your offerings.
- Enhance goods and inform customers. Make improvements to your goods and services to make them more appealing to your customers. Inform your customers that you have made upgrades in accordance with their needs to reduce turnover.
Elevate the Customer Experience
Customers are likely to return when purchasing is easy and seamless. If you own a brick-and-mortar store, this means choosing the right location, improving your store layout and training your staff to better serve customers.
But in this digital age, an online marketplace like Dropee’s can go a long way in enhancing the customer experience without depleting your resources.
Dropee Marketplace is equipped with all the tools a business owner needs to sell to customers efficiently. Not only is purchasing easy on Dropee Marketplace, but you can also keep track of your sales, payments and inventory all in one. This way, you have all the information at your fingertips to provide the best experience to your customers.
Get More Repeat Customers on Dropee
With so many options out there, customers can switch brands in an instant if they find one that meets their needs better than you.
But you can avoid customers from churning by getting to know them, appreciating and listening to your clients in order to make their lives easier. Sign up as a seller on Dropee today to enhance the customer experience and get more repeat customers.
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