Let’s be honest, the customers you already have are the most profitable. Having them around is worth the time and effort. This isn’t to say that acquisition of new customers isn’t important, because you can never have a repeat customer if they never buy something in the first place.
The problem, however, is that the average store devotes more than 80% of its marketing budget to buying, causing retention to take a back seat. It is important to note that 8% of an e-commerce store’s customers are responsible for 41% of that store revenue.
A repeat customer means a repeat purchase
A repeat customer is by definition a visitor that has made more than one order. Most likely a repeat customer will shop with you again. The more trips the customer makes to your shop, the greater the chances of keeping them for good. Encourage them to keep going back again and again. It can be a valuable tool for creating solid, long-term, and productive relationships.
It costs less!
When your customers are fresh, that means that you’re spending more time trying to convince them to buy from you and that’s eating into your income. Selling to current customers is simpler and less costly than selling to new customers. There are a lot of explanations for that, but mainly it comes down to trust. In the past, when you sold something to someone, you built up trust.
They’re giving you cash and you are selling them what they need. If your goods, customer service, payment system and delivery have lived up to your word, they are likely to buy from you time and again.
Repeat Customers are less price sensitive
A majority of business owners believe that shoppers today are bargain seekers and will switch offerings for only a small price drop. While this is true of a new customer, after a consumer has had a few successful shopping interactions with you, they are less likely to be prone to price increases or demand changes.
They value your brand and they’ll go out of their way to buy from you regardless of price changes. Of course, you should be careful not to overprice your product, but if it means sticking with you, your regular customers are likely to pay more for your goods/services.
Repeat Customers become brand ambassadors
Not only do repeat customers become more important when shopping, they also give you some massive marketing opportunities. A frequent customer gives your store enhanced word-of-mouth advertising, which is considered almost always to be the best form.
A loyalty program is the best way to create repeat customers
A digital loyalty program’s primary goal is to retain consumers by rewarding them for their frequent buying behaviour. This sets advantageous patterns for your business and provides consumers with a strong incentive to buy from your company again. In short, the customer loyalty program is a mechanism for maintaining consumers by providing them with a solid incentive to buy from the business again and develop habits.
Loyale: the simple and easy to use Digital Loyalty app
Loyale provides an easy way to award points to your customers, be it a purchase, a birthday or even joining your scheme. Show your most loyal customers how much they meant to you. Keep your best customers engaged by giving them goals to achieve to reach the next tier and unlock better awards. Allow your customers to send and split points. They can share points to existing users or invite their friends to join if they have bit signed up yet.
Are you looking for a digital loyalty program for your business? Find out more on how you can increase your customer engagement!