If you ask most business owners, they’ll tell you that the majority of their customers are repeat. The truth is, however, they’re very wrong. It’s unfortunate, because repeat customers are much more profitable to your business than new business, and they typically spend over 45% more per visit than new customers do. Acquiring a new customer costs your business 5-10 times more than keeping a current customer does. So why don’t more businesses focus on making their repeat customers more commonplace? Maybe it’s because they don’t realize how valuable repeat customers are, or maybe they don’t know how to bring them back.
Good news! We DO know how to make customers loyal to your business, and we have tips for you to make those customers come back frequently:
Invest in Your Customers
Experts recommend that you spend at least 25% of your marketing budget on customer retention. If you are spending that much on your current customers, you won’t have to waste so much of your budget on trying to bring in new customers, while losing those who have already spent money on your business. Investing in your customers means that you are working continuously in their best interest and focusing on making them loyal. How can you invest in your customers? Where should the 25% of your marketing budget be spent?
- Customer Loyalty Programs
- Customer Engagement
- CRM Platform
- Discounts for Encouraging them to Come Back
- Referral Bonuses
Engage with Your Customers
Engaging with your customers is the number one way to create loyal business. Engaging regularly with your customers builds trust and creates a relationship that your customers can count on. When they are reminded of your business and contact information through text, email and social engagements, they are more likely to come back. When you send out engagements with helpful tips and information pertaining to your industry, they know you are the expert. If you’re running a current deal or special, they will be more likely to take advantage of that since they’ve worked with you before. Sending out a quick text or email to thank them for working with your business in the first place builds a relationship with them and shows them that you’re excited to be working with them. So, what does customer engagement look like?
- Thank You/Follow-Up Emails
- Discounts and Offers
- Tips and Tricks
- Business Updates
- New Products/Services
- Reminders to Schedule Services
In order to ensure you’re bringing in revenue regularly, have customers you can count on. When your customers are coming back often, you know that money will be coming in and you can feel stable and secure in your business.
For more insights on marketing strategy that actually works for small business, subscribe to the FreshLime Newsletter here. Connect with Jay Bean, Founder of FreshLime and Small Business Marketing Expert on LinkedIn and Twitter. And last of all, if any of these tips have helped you or if you have anything to add please comment below. We’d love to hear from you!