If you are investing most of your time, energy, and resources in acquiring new customers, you’ve got your priorities completely wrong way round. Rather than focusing on winning new customers, you need to satisfy your existing ones to improve retention, get higher sales, and build brand awareness. Don’t forget, repeat business spends 33% more on your product or service than new customers and refer your business 50% more than first-time buyers. So let’s explore:
- What is repeat business?
- What are the common types of repeat business?
- Importance of repeat business
- How to improve your repeat business?
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What is Repeat Business?
Repeat business occurs when customers buy from your business/company repeatedly or regularly. Here your customers turn into loyal supporters of your brand and shop with you frequently over time.
Repeat customers increase almost 80% of your business revenue. This grows the bottom line of the business without increasing the marketing cost. You can earn repeat business by:
- Offering personalised customer services
- Loyalty programs
- Giving out coupons
- Offering freebies and so on
What are the types of Repeat Business?
Here are the common types of repeat business that you can start:
- Consumables: These goods are used by almost all and purchased repeatedly, like vegetables, etc.
- Services: Services can turn into repeat business with a loyal customer base.
- One-Stop-Shop: A business having a variety of products can be a repeat business by offering multiple products in a single place.
- Rebuy: A rebuy can also be a repeat business where you can make a repurchase of the supply that has already been bought.
- Subscriptions: You can do repeat business by offering subscriptions.
- Razor & Blades: Such a business where durable goods are sold at a low price to increase the price of supplementary items.
- Cross-Selling: It is the method to sell additional services and products to a single customer.
Importance of Repeat Business
When your business turns into repeat business, your customers become the loyal supporters of your brand and buy items from you on a regular basis. It has prominent importance in the business world because it:
1) Boosts Customers’ Retention
To grow your business, you need to retain customers towards your products or services. Customer retention is important to make a loyal customer base to buy your service or product regularly.
2) Promotes Your Business
By building a loyal customer base, you can promote your business for free. As the customers who love your product or service would share their experience with their family and friends.
3) Is more Profitable
Repeat business is cost-effective, yet profitable for your business, as customers spend more money on the businesses they trust.
4) Gets Eager Customers
Your repeat customers would be eager to buy your new product and it’d be relatively easy to sell than the new ones. With the trust they have in your brand, you can easily sell them your new products.
5) Saves from New Customer Costs
One of the important points of repeat business is, it saves a lot of your advertising and marketing costs that you can invest to get new clients.
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How to Improve Repeat Business?
Here are some of the steps to promote and improve repeat business:
- Create a custom loyalty program
- Deliver excellent customer service
- Spend money on after-sales support
- Automate the customer conversations
- Offer discounts and incentives
- Introduce a reward system
- Offer freebies and coupons
- Maintain an active online presence
- Get feedback and update your product
Quick Sum Up
To conclude, we hope that now you have got a basic understanding: what is repeat business? why it is important? And what are the steps you can take to improve your repeat business? In a nutshell, repeat business is way more profitable and cost-effective than acquiring new customers to increase your revenue.
The best way to turn your new customers into repeat customers is to offer consistent support and the best customer experience. With the customer retention strategies, you can improve customers’ retention, maximise leads and boost your business profits and revenue.
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Disclaimer: This blog is intended for the general understanding of repeat business.