Repeat Customers; Are You Leaving Them Behind For New Acquisitions?

3 Reasons Why Focusing On Repeat Customers Gets Your Business Further – For Less

9.12.2022

The most common answer small business owners give when asking about their business or marketing goals is new acquisitions. They want new followers on social media, more foot traffic or online traffic to their website and rightly so, pour much of their focus into achieving that costly goal.

Unfortunately, this often leaves a more effective and often overlooked marketing strategy behind. What’s that strategy? Focusing on rewarding repeat customers.

Repeat customers are low cost marketing targets. As small business owners brace for another holiday season on the horizon, the reality is that most, if not everyone is on a budget. Consumers will be looking for a deal now more than ever and small business owners competing against big box stores can’t afford to fade into the background. Instead of fighting through all the noise reaching new audiences, reach those new audiences by focusing on your current fanbase.

Three reasons why focusing on repeat customers gets your business further for less.

Attracting new customers can cost up to 5x more than to keeping current customers engaged. If costs less, than it must not be worth it? Right? WRONG.

1. Repeat customers are easier to sell to since they have already purchased a few of your items thus removing the need to convince someone to give you a try. Repeat customers are also shown to spend more on repeat visits than a new customer. Bain & Company released a study showing that a simple 5% increase in retention can result in a profit of 25% or more.

2. Word of mouth is one of the most powerful marketing and business tools. Repeat customers that leave with not just a positive experience, but also positive reinforcement will sing your praises to their friends and family. Essentially gaining free advertisement and endorsement from trusted sources for much less than the cost of a new acquisition.

3. Data – the new currency – is rich in information that small business owners can use to predict their needs and strategies. While new acquisition often requires series of trial and error, learning and analyzing what has worked and is working can result in fantastic profits. Along with being less costly and more effective, collecting and analyzing repeat customer information saves you time.

This is the beginning of our blog series that dives deeper into the various ways reward programs can be used to enhance the customer experience and how small business owners can increase their profits by using data and software already at their fingertips.

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