Did you know 80% of profits come from 20% of customers? (CustomerThermometer)
For most businesses, it’s simply just how it is: repeat customers are more valuable than new ones. They’re the regulars you’ll see day in and day out.
Did you know repeat customers spend a lot more? In fact, they’ll actually spend 33% more than new ones. (CustomerThermometer) Listen, I’m not saying you should just halt your customer acquisition efforts. But maybe don’t dump your entire budget into it. You’ll need to spend five times more to acquire a new customer than merely retaining one you’ve already secured. (Forrester Research)
Most customers won’t return to your business. In order to create a repeat customer, you need to invest in engagement. You need to find ways to bring them back. Here’s three ways your business can earn more repeat customers.
A Loyalty Program
Let’s start with a brief discussion about loyalty programs.
Consider the classic hole-punch loyalty card. You know the ones. While it’s not a method I would recommend in 2020 (though it’s often well-replicated in digital form), the hole-punch teaches us a valuable lesson about why loyalty programs are so useful to businesses.
The entire concept of a hole-punch card is focused around encouraging customers to keep coming back for more. By offering a reward for a set number of visits, there’s an incentive for customers to keep coming back.
There’s a reason why this is so effective. Research from Yotpo tells us that 37% of customers don’t consider themselves brand loyal until they’ve made five purchases. The hole-punch was built around this idea. If you can get someone to keep coming back, they’ll become a loyal, repeat customer without even realizing it.
Thanks to advancements in digital loyalty, there are even more ways to keep customers hooked. Thanks to mobile loyalty, businesses can engage rewards members instantly with real-time offers, automated messages, and personalized engagement.
Stellar Service, Stellar Experience
A big part of creating repeat customers is promoting a sense of memorability.
In an ideal world, you want customers to keep thinking about what a great experience they had with your business. And while there are many ways to make a great experience, there are few as reliable as offering great service.
According to research from HubSpot, companies that offer excellent customer service are more likely to secure repeat business from 93% of customers. Think about it. When you have a great service experience somewhere, it sticks with you. You’ll find yourself thinking back to the occasion, whether it was a moment that surprised or delighted you.
Your goal is to be memorable. You want to stand out. Give customers a reason to think about your business. And if they’re really satisfied, they’ll tell their friends about it too! According to American Express, happy customers will talk about a positive experience with an average of 11 people. Fostering repeat customers will naturally develop brand advocates – delivering new customers to your business at a fraction of the cost.
Digital Engagement – With CoGoBuzz
Like I said, if you want to develop repeat customers, you need to invest in customer engagement. And with CoGoBuzz, that’s never been easier. Our state-of-the-art digital marketing service is designed to automatically incentivize customers to keep coming back for more.
Here’s how it works.
When customers login through WiFi with their Facebook profile, email, or phone number, we’ll hook you up full customer profiles, giving you all the valuable data you need to cater to them. On top of that, you’ll take advantage of a fully-digital SMS-based loyalty program that simplifies engagement to a simple text message, allowing you to engage with your customers wherever they go.
What customer retention strategies does your business utilize? Sound off in the comments!