Tips to Increase Repeat Business
From the hundreds of ads out there touting major deals for new customers, it’s clear that many companies prioritize getting fresh business seemingly above all else. But as someone with more than two decades of experience both acquiring and keeping clients, I can tell you that the true gold mine lies in retention. Returning customers cost less to acquire, offer a more consistent source of revenue, and oftentimes even serve as active brand champions. In fact, according to Fred Reichheld of Bain & Company, just a 5 percent increase in retention rates could result in an amazing 25 to 95 percent increase in earnings.
Clearly, giving repeat business top importance can help you greatly increase profitability and attain steady growth. While the best strategies for you may depend on your company or industry, here are a few core ones to consider that may enable you to boost your number of devoted clients and foster explosive expansion.
Prioritize customer relationships
The client relationship is crucial to creating loyal patrons. People are far more likely to return to a company when they feel connected to it, and that requires you to look at them as more than just a sale, taking steps such as the following to demonstrate genuine care and build trust in your brand.
Communicate, communicate, communicate
Strengthening any type of long-term relationship demands constant, open, and efficient communication. As a business, you can achieve this through a multichannel strategy that features a calculated mix of emails, social media, direct mail, and other modes of contact. Keep your content diverse as well; rather than barrage your customers with endless promotional materials, offer educational guides on topics relevant to them or glimpses behind the scenes to endear them to your brand. Such frequency and variety will keep them informed and involved, ensuring that you stay top of mind. This way, you’ll be the first company they think of when they’re in need of another product or service you offer.
Listen to your consumers
Going hand in hand with communication is listening to your customers. Read through reviews or send out surveys via email or social media to help identify where you are succeeding—and where you could stand to make improvements. Then make sure to respond promptly to any issues you identify to show that you’re listening. For instance, comment back to customers who share negative experiences on social media to acknowledge their frustrations and offer to make it right, which can help appease them as well as show ownership as a company. Or if you have enhanced a product based on customer feedback, let them know through an email blast, emphasizing your gratitude for their ideas. By taking such actionable steps, you can make your customers feel heard, boosting their trust and encouraging them to return.
Personalize the experience
Another essential element of building the client relationship is personalization. Customizing your communications to fit individual tastes produces a more relevant consumer experience, helping them feel more valued and cared for beyond the sale. Simply gather relevant data on your typical customer—age, location, pain points, etc.—and determine ways to apply it, such as by tailoring your content to their interests and creating segmented email campaigns targeting pockets of your audience.
Establish loyalty programs
Loyalty programs foster repeat business by creating a sense of belonging and making customers feel special. Tiered rewards, special benefits, and custom offers are all enticing perks that may encourage one-time buyers to come back in order to take advantage of them. In fact, over 75 percent of global shoppers would even switch brands for a better rewards program, according to a KPMG survey. So if you don’t already have one, consider adding it to your business strategy—ultimately, it’ll be a win-win situation for both you and the customer.
Empower and train your employees
Your employees are the ones on the front line with customers, making them the key to delivering great service that keeps customers coming back for more. So don’t hold back when it comes to uplifting the team around you! To start, focus on building a strong, supportive culture that promotes open communication and puts a customer-centric emphasis at the forefront. You should also conduct regular training sessions to refresh or update employees on product knowledge, best customer service practices, and problem-solving techniques. You could even offer opportunities for more extensive professional development to boost their sense of empowerment. The more knowledgeable, competent, and confident your staff is, the more able they’ll be to provide positive shopping experiences that increase retention.
Utilize technology
When it comes to implementing the strategies above, technology can be a powerful tool to help you simplify processes, improve experiences, and make data-driven decisions. A CRM, for instance, offers a consolidated center for handling essential customer data, while marketing automation features can help ensure that you don’t miss crucial touchpoints. And social media analytics enable detailed tracking of your customers’ habits and engagement with your brand. By using a mix of these technologies, you can maximize your marketing initiatives to create long-term loyalty.
Remember, the path toward retention is a marathon rather than a sprint. Success demands constant effort and a positive attitude, so keep your mind churning and your chin up toward a road of repeat customers ahead.
ABOUT THE AUTHOR: Luke Acree is an authority on leadership, a lead-generation specialist, and a referral expert who has helped more than 100,000 entrepreneurs and small businesses grow their companies. He hosts Stay Paid, a sales and marketing podcast, and has been featured in Entrepreneur, Forbes, and Foundr.com.
TAKE ACTION:
Review your current customer feedback channels to identify recurring themes, both positive and negative, and then brainstorm initiatives you can take to either double down on or address them.