The time for focusing on customer engagement to increase your business’ amount of returning customers is now. Why?Not only does it cost businesses 5 times more to acquire a new customer than to bring back an existing one, but returning customers spend an average of 33% more on every order than other customers do. Returning customers can also be called loyal customers, because that’s just what they are: loyal to your business

Why do Returning Customers Spend More?

There are many reasons returning customers spend more with businesses they are loyal to than other customers do:

They trust you: Once you’ve built a relationship with your customers, they trust your business and feel more comfortable spending their money with you. When your business has provided high quality work and exceptional customer service to your consumers, they know they can expect that from you in the future. People work hard for their money, and as a business owner you know that first-hand. Nobody likes to spend their hard-earned money on something they think won’t be beneficial to them. Loyal customers don’t want to stray from the businesses they frequent because they know that they’re making a wise choice using businesses they trust. Your repeat customers know they can trust your business enough to purchase your more expensive products and services.


They come back regularly: Returning customers spend more because they utilize your business more. It’s just that simple- consumers who spend money with your business every 3 or 6 months are much more valuable financially than those who use your business just one time. 


They are easier to sell to: You’ve done it before and you can do it again, right? Once a customer has chosen your business, it becomes much easier for them to choose you again in the future. Consumers are all about saving time and money (just like the rest of us), and staying loyal to your business allows them to do just that. Returning customers are easier to sell to because they’ve already been sold on your business so the hardest part is over for you. Bring customers back by engaging with them on a regular basis. 


Returning customers are the most valuable customers a business has. Turning your customers into loyal advocates for your business is as simple as customer engagement and strong communication. Loyal customers spend over 30% more than other customers every time they utilize your business, so it’s easy to see why they should be a top priority.

For more insights on marketing strategy that actually works for small business, connect with Jay Bean, Founder of FreshLime and Small Business Marketing Expert on LinkedIn and Twitter. 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!


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