Businesses that exclusively focus on traffic generation and conversion may want to rethink this strategy because it diverts attention and resources from the most important individuals: the repeat customers. Unlike a new lead, repeat customers no longer require convincing to buy your products and services. Retaining them requires substantially less effort and marketing money than acquiring the first time customer.
In fact, many are happy to continue their purchasing with no input from you. However, its best not to take this for granted. Proactive efforts at improving their experience with your business reduce their attrition rate and may increase their numbers through word-of-mouth referrals. Of course, acquiring first time customers is also important for business growth, but retaining them and your current repeat customers allows your business to grow faster. Thus your resources should include customer retention as well as acquisition.
Three other important benefits of repeat customers are:
They Have a High Lifetime Value
Lifetime value is the net profit gained over the course of your future relationship with a customer. Repeat customers tend to spend more by making frequent purchases of products and services with a higher price point. Efforts on your part to understand their purchasing patterns allow you to make enticing offers that ensure future buying.
They Are Easy Going Customers
Because of high customer satisfaction, repeat customers make fewer complaints, are less demanding, and make fewer returns. Understanding their preferences and providing them with what they want, ensure their high satisfaction.
They Are Less Receptive to Your Competitor’s Offers
Unless they thoroughly enjoy shopping around for the best prices and deals, most people prefer to default their purchasing to proven businesses. For them, buying from a proven business is less risky. Shopping around and researching other businesses is exhausting and time-consuming. Most people have better things to do with their time and energy.
Getting to know your customers and personalizing your interactions with them isn’t easy, especially as their numbers increase. However, automated marketing and CRM software greatly facilitates and streamlines the process. It’s equally useful for acquiring new customers as well. For information on how this software can help your business, contact us.