Repeat customers are the bread and butter of each business. Loyal customers are the ones that spend the most money in your company, and they like coming back. But how to increase the recurring customers and get your business to the next level?
In this article, we will see what a repeat client is, and we will briefly mention why it is an excellent decision to keep your customers and ten tips to drive more repeat purchases.
What is a Repeat Buyer?
A repeat customer is a customer who keeps coming back after their first purchase. It’s a client who has at least two purchases with your business.
They are the backbone of any enterprise — not only can they provide you with a constant source of revenue, but their referrals can turn first-time shoppers into your biggest brand advocates.
Why are Repeat Customers Good for Your Business?
Repeat customers are considered a “gold mine” for companies for not one or two reasons. Let’s see some benefits of having multiple purchases from existing customers.
Loyal customers spend more money
Customer retention is crucial for any business. According to reports, a loyal buyer spends up to 33% more on your business. And it’s normal. The more orders they have, the more trust they have in their business. In fact, these customers spend up to 5 times more than your smaller ones.
Repeat clients are free marketing
Word-of-mouth marketing has always been a thing. Well, your happy repeat customers will bring you, new clients, on board. A satisfied customer is a brand’s best referral, and they can get you new shoppers without spending a cent! In this time when ad campaigns cost a whole fortune, it’s a breath of fresh air to have free brand ambassadors.
Reduced acquisition costs
Why spend your limited resources looking to new clients when existing ones are much more valuable? New customers cost nearly as five times more than existing ones because of acquisition costs, internal training, and building brand recognition. By re-investing in your current buyers, you will save yourself those costs.
You can’t thrive these days without a strong brand presence. Repeat customers help you build solid branding and will follow you everywhere. Customers are interested in more than just a one-time purchase — they want to be engaged with the brand and assure they’re not just getting a good deal.
10 Tips to Increase Repeat Purchases
We already saw how beneficial repeat customers could be for your business. Let’s see some tips and tricks to increase repeat sales.
1. Improve customer service
A good customer service platform is crucial to the success of any business. Satisfied customers increase the chances that they’ll make repeat purchases, tell their friends about your brand, and provide positive word of mouth.
Stats don’t lie – 95% of customers admit strong branding is achieved by customer satisfaction. That means 19 out of 20 shoppers will highly regard customer service if they don’t get it. Well, you know what happens next.
2. Position your brand
Brands are no longer businesses that just sell products — they’re also social entities, a “friend” with the customer. The more your customers interact with your brand, the closer you get to them — and the more prone they are to remain loyal. A solid online presence and branding help companies achieve these goals, building trust.
Branding can be found anywhere — the way you address your customers, the way you deliver subtle messages, the way you do your package design, branding is everywhere. Whatever you do, ensure you keep placing your brand anywhere.
3. Personalize user experiences
Upselling and cross-selling are two marketing methods that ecommerce brands can use to maximize profits. By sending customers targeted offers and incentives, we increase the likelihood they’ll purchase your top-selling products in exchange for discounts, free shipping, or additional product add-ons.
Of course, you should not spam your customers with offers, as they will get easily bored or annoyed — which is even worse. The key is in the balance.
4. Light up your newsletter
We already told you about branding. Email marketing is successful because it makes a habit. Reaching out to your database will help you provide more tailored experiences and also create a long-lasting impression on your users.
That’s right — the more you reach out to your customers, the better. They need to know when to expect an email from you — be it a discount campaign or some interesting behind-the-scenes story customers want to receive, so even if it’s an email, it still counts. Of course, don’t get too spammy.
5. Tell your story
People want to know as much information as possible. Customer loyalty is achieved by being transparent and honest with your users. They need to know who you are, what made you start selling, and how you will commit to your customers’ problems.
Consumers have become more aware of the surrounding world. Thus they also have questions about your brand. They want to know how well you treat your staff members, how good your products are, where you bring them from, and how much you care for the climate.
6. Create loyalty programs
Customer loyalty is earned by hard work and providing special perks. People want to feel valued; this is how you show them how much you care about them. Rewarding your biggest spenders is always a good mood.
While it might cost you up to 10-15% of your profits, the customer lifetime value (CLV) that you will generate will exceed by times what you will give back.
7. Don’t give up on abandoned carts
Abandon shopping carts are the nightmare of all storefront owners. While new customers might be a bit afraid to trust your products, you will be amazed by how many of your loyal customers were unfortunate to have their transaction disapproved.
For whatever reason, they might have forgotten to complete their order. It happens. Your clients might have been rushing to catch the next train home or could have a poor Internet connection. All these factors contribute to a high abandonment rate, so the only way to see if this is the real reason is to check up with your customers and slightly push them to act.
8. Share testimonials from your customers
It is no surprise to anyone that customers want someone to stroke their ego. And why not? The best way is to contact them, collect feedback, and show their names on your website. After all, it’s a win-win situation.
Customers can proudly say they are one of the “storefront faces,” and you can attract new customers by coming up as a more credible store.
9. Offer free delivery
It’s pretty unfortunate that sellers still need to be reminded how much free shipping matters to customers, but yes — it’s a powerful tool to win or lose customers. People love free delivery, as nobody wants to pay for something they don’t get to consume.
Offering free delivery will increase customer retention rate, and also boost customer acquisition. And not only that — you can establish a minimum order value for free delivery, which can increase your average order value. Fair deal, huh?
10. Be active on social media
It’s our last tip for now, but we guarantee you it’s just as important as the others. Customer experience is now built on social media networks, where people love to share their stories.
Sharing posts, replying to comments concerning your brand, and pinging your customers with funny Tweets will be highly regarded in this competitive world. After all, you need to be where your clients are.
Repeat customers spend more money than one-time users. But loyalty doesn’t come for free. You must take care of your clients, pay them enough attention, and give back — you can’t get without giving first.
Whether you offer discounts or create a loyalty program, you should find a way to say “Thank You.” While it might cost you something, the long-term benefits outweigh any short-term disadvantages.
Clients don’t come back after having bad experiences. So to ensure that they will not have any, you need to deliver an exceptional consumer experience.
Also, customers are keen on loyalty programs and different promotional campaigns. This way, they feel valued, so it’s a great idea to offer something that might attract their attention.
Loyalty is not a term, and it’s a way of life. To get more loyal customers, you must provide more customized experiences for your clients and build a strong brand.
The key to growing in such crowded webspace is to find a way to be unique. It is precisely where branding takes place. If you associate your name with your products, you will be successful.