Very often when you realize that your business isn’t reaping the profits it should, your first strategy is to try and acquire new customers. You put in loads of money trying to attract new leads, get them to buy your product. Hell, you even try to give them free samples just to make sure they notice your product!
However, you don’t realize that you already have a whole bunch of customers who are not only familiar with your products but have also used them – maybe once, maybe twice, or even regularly. These customers who make repeated purchases are referred to as repeat customers. And believe it or not, repeat customers are more profitable than acquiring new ones. Not that you shouldn’t invest your resources in getting new customers – they are important too. However, repeat customers are known to be more profitable and less taxing. Let us tell you what makes them so profitable and why you should invest in them.
1. They know your product
The best thing about a repeat customer is that he knows your product. And not just knows, he likes your product too, and that is why he keeps coming back. You don’t have to spend time explaining to him why your product is better than other products in the market or why he should invest in your brand. He likes your product, he believes in your product, and he chooses it over other products in the market.
2. They are your best brand endorsers
More often than not people tend to rely on word of mouth endorsement than any other piece of communication. A friend’s opinion is more valuable than a social media post or a television ad. Why? Because someone you know has used the product, liked it, and appreciated it too. Why would you want to spend hours researching something when you already have someone who’s tried the product and is happy with it? Not only do repeat customers keep coming back, they also bring in a lot of new customers too!
3. It is easier to sell to a repeat customer
It is always easier to sell to a repeat customer. He’s tried your product, knows your product, and is willing to spend on your product too. He knows your brand and is willing to spend regularly because he likes your products.
4. They are more willing to try new products from you
Let’s say you are ready to introduce a new line of products. More than a new customer that you are trying to acquire, your repeat customer will be willing to try the product – even if it’s not for free. He knows your products, trusts your products, and doesn’t need much convincing. In fact, he will even bring in new customers because he knows you so well. And if you give him a good customer service, you’ve got a loyal one for a long time!
5. They don’t think twice before spending a little more
If you are running an offer a repeat customer will be more than willing to buy more – simply because he knows your product. A great deal or offer will only entice him to make more purchase and he won’t think twice about it; because, why not?
To keep your business going, it is a great idea to acquire a new customer – that’s how you end up turning them into repeat customers. But it is also imperative to keep your repeat customers happy. When coming up with a plan, make sure you allocate your budgets wisely and focus on appealing to both sets of customers.
nth Rewards is a multi-brand loyalty platform developed by NPCI and one of the largest platforms that helps you connect with your customers and retain them too. You too can become a partner and ensure great visibility for your brand.