Is your business not acquiring as many customers as you anticipated even after investing last few months in Ad campaigns and Social Media Promotions?
What is it that you are lagging behind?
Well, it is nothing but your concentration on making new customers while not paying attention to the repeat customers.
Yes! Repeat Customers are the key to profitable business.
Who is a Repeat Customer?
A person who buys a product from you for the very first time is a customer. If that customer again buys a product from you, he/she is a Returning Customer. Now, if the same customer keeps on buying products again and again from you, he/she is a Repeat Customer.
Most of the E-commerce entrepreneurs still hesitate to believe that their business can be lead to the path of success with Repeat Customers. And thus, they keep on spending their assets on acquiring new customers. On the contrary, Retention Marketing is the way to go.
So, how focusing on your Existing Customers will help you grow your business and earn a handsome profit?
Encouraging Repeat Customers help you create lifelong as well as lucrative relationships.
Here are five reasons that will ensure you that Customer Retention is the best thing that can happen to your business.
1. They cost you less
Finding new customers can be really rewarding but expensive and time-consuming at the same time. Let's say, you got a new client. Now, you will have to spend much of your time in convincing him/her that you are trustworthy. Followed by this is sending emails, making phone calls, and even random visits. Then, there are chances that he/she would make a purchase. Now think about it. How much time, money, and resources you spent on a single customer? Well, it would definitely cost a significant amount of your profit.
But, when it comes to Repeat Customers, the entire scenario is different. You don’t need to spend more on enticing them. As they already made a purchase from you before, they trust you.
2. They spend more
As said earlier, Repeat Customer doesn't require you convincing them for second, third or more purchase. According to a study based on the online shopping habits of customers, it is found that they tend to spend more on the next purchase as compared to the last one. And, the amount that they spend increases exponentially with each purchase. As a result, you will observe a considerable hike in your profits.
So, simple is the approach! Make a customer stay longer with you and they will likely spend more.
3. They are less price sensitive
Most of the E-commerce entrepreneurs think that online shoppers are typical bargain hunters. They switch services whenever they find a tiny price drop. Well, this is true in case of customers making a first-time purchase on your website. But, talking about Repeat Customers, this is not a big issue.
It is observed that long-term customers are not even half as sensitive to price changes as a new customer. Once the customers have made some good experiences by shopping with you, they might go out of their way to make a purchase only from you. Nevertheless, you must remain careful not to overprice your product.
4. They are your Business Promoters
‘Word of Mouth' plays a vital role in promoting your business and its medium is none other than your Repeat Customer. When customers are satisfied with the product you deliver, your customer and shipping services, they will surely spread a good word about you. Probably, they will share their shopping experience with friends and family members. This will help you promote your business without costing a penny.
So, happy and satisfied customers are your real Brand Advocates.
5. They help you earn the profit
Businesses are built on Customer Retention. It requires less convincing and low marketing expenditure. Focus your time more on Repeat Customers and you will note a significant rise in your company’s profit.
So, picture strengthening your existing customer relations rather than developing new ones.
Then, how will you start driving Repeat Customers?
Well, quite a simple approach - E-mail Marketing!
Get in touch with your existing customers and buoy up them to shop with you again.