Repeat Customers Can Be the Key to Success for Your Business
How many of us, when we set revenue goals, are hoping for increases of 10%, or 20%? But, often, even those modest increases are difficult to achieve.
So for most of us an increase of 67% is hard to conceive. But, according to business.com...
On average, a repeat customer spends 67% more than a new customer.
For the retail store, it's a plain fact that it's the repeat customers who've been coming in for years who will make you successful.
Here’s a deep dive into how those loyal customers make such a difference and how you can get more repeat customers for your store.
First, why do repeat customers make such a big difference?
Repeat Customers Spend More: Research indicates that repeat customers spend on average 67% more than new customers. This is partly because returning customers already trust the brand and are more likely to explore higher-end products or services.
Cross-Selling and Upselling: Repeat customers are more open to cross-selling and upselling opportunities, as they have already demonstrated trust in the brand. Studies show that the probability of cross-selling or upselling to an existing customer is 60-70%, compared to a 5-20%Â chance with new prospects. Wow!
Profitability: According to the Harvard Business Review, acquiring a new customer can be 5 to 25 times more expensive than retaining an existing one.
Retaining customers works a bit like compound interest. Increasing customer retention by just 5% can lead to a profit increase of 25% to 95%!
Frequency of Purchases: Loyal customers not only spend more per transaction but also shop more often. Retailers find that repeat customers can shop 3 to 4 times more frequently than first-time customers.
Want to sell a big ticket item? You're several times more likely to sell that item to a repeat customer. So, how to build that repeat business?
Exclusive Deals and Brands: Brands exclusive to one retailer are more popular than ever. If customer loves a product and can't find it anywhere else, they'll quickly become a repeat shopper.
Customer Engagement: Well-designed loyalty programs keep customers engaged with the brand. Offering points, rewards, and exclusive access. This engagement often results in customers feeling valued, making them more likely to choose the retailer over competitors.
By creating value for customers through rewards, exclusive offerings, and personalized experiences, retailers can turn occasional shoppers into devoted, repeat buyers, thereby driving consistent revenue growth.
So if you want to take your business from average to extraordinary, be sure that your customers are repeat customers!
Kleenco products are sold only through our independent brick-and-mortar retail distributors. That means if your customer likes Kleenco products, they have to come back to your store to buy it again. We'd say that's a pretty good way to build repeat business!
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