Newsletter
May 2021 Newsletter
Repeat Customers And Your Business
Why are Repeat Customers So Valuable?
Loyal Customers not only support your business with their regular financial spend (a must for small businesses during slow periods/seasons), but they will also encourage positive brand awareness through word of mouth and referrals. If you are a small business, community reputation means everything. By encouraging customer repetition and referrals with a few simple marketing efforts, you can see some big increases in sales.
Here are some interesting statistics to support this:
• It can cost 5x more to acquire new customers than to keep current ones – The National Law Review
• A 5% increase in customer retention can increase a company’s profitability by 75 percent – Bain & Co
• 82% of companies agree that retention is cheaper to execute than acquisition – Econsultancy
Tips for Customer Retention
Make it Personal
Focus on your customers’ needs and wants and ensure their experience with your business is a positive one. Provide a means to an end (aka your service) supported by friendly and helpful communication – this means remembering their name, regular order, or something specific about them or their business. This also includes personalised digital communications where possible. A little extra detail goes a long way.
Reward with Discounts
As part of your marketing efforts, whether this be for a service, in store or online spend, encourage future sales with rewards. Customers who make large or frequent orders with your business will appreciate the value in a one-off discount which will likely encourage them to support your business further – and of course, tell their friends!
Loyalty Programs
Loyalty Programs are a transparent way of ensuring your customer will receive a discount once they reach a certain spend or certain number of visits. This encourages customers to work towards their freebie by supporting your business a number of times before they reach their goal. A simple loyalty card can be applied across many business models – including gyms, creches, hospitality, beauty and health sectors.
Referral Programs
Referrals come in many forms, from Google reviews to Facebook shares, customer loyalty is evident across many platforms. For a digital referral program there are a number of software systems which can track online referrals to ensure those who refer a friend are rewarded. This could come in the form of a discount code applied at checkout, or a verbal agreement to ensure a further % discount is applied to the referees account or next purchase.
Customer retention encompasses the essence of building a loyal community that supports your business. By increasing your marketing efforts with perks and rewards, you can increase your repeat customers in a transparent, honest and positive way – and ultimately tap into some of those positive statistics!