When you consider the cost of advertising, it is not hard to see why repeat customers and clients are so valuable to businesses. Cutting down on marketing and advertising expenses, however, is not the only way in which this highly desirable element of the market can help to increase profitability. Repeat customers spend more money, make larger transactions, buy a wider range of products and services, and refer more customers. But although repeat customers offer all these great benefits, many businesses do not even know what percentage of their sales comes from these clients, let alone why their repeat customers keep coming back, what they buy and how often they buy.
Repeat customers do, of course, keep buying for a number of reasons, and knowing whether it is your prices, your customer service or the fact that you give them first crack at your promotional offers is vital if you want to encourage more of your clients to do the same. In addition, when you do promote special offers, knowing which ones are most successful in persuading customers to return can help enormously in fine-tuning future marketing campaigns.
The closer relationships that you build with repeat customers provide several benefits. First, these clients are much more loyal; and second, the deeper bond makes them much less price-sensitive than one-off buyers and so much less likely to change suppliers if you put your prices up.
Put a little work into understanding your repeat customers and watch your profitability soar!