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Discover the value of a repeated customer!

Published on March 5 2018

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Repeat customers, the ones that come back over and over to buy from you, are the foundation of a profitable business. If you are not still convinced on the value of a repeated customer, BitterStrawberry will not only show you how important it is, but also teach you how to get exposure for your products/services, so the customers will return to purchase again and again.

Knowing the main elements for creating and retaining customers, you will know how to optimize your marketing campaigns, incorporating  all these elements into your strategy.

According to statistics, more than 30% of the total profit of the most stable businesses comes from returning customers. Also, the customers that buy once from a site have 25% chance to return making a second purchase and this is why it is recommended to encourage the second sale, so you will create a long-lasting relation with that customer.

Developing a core base with your returning customers, through relevant, targeted content, free shipping, exclusive events or different incentives, giving them more reasons to buy, you can make your customers feel special and loyal to your brand.

If you are still not convinced by the value of a returning customer, here are the main reasons that will make you buy the idea:

1. Repeat Customers cost less, so your marketing spends will be lower

Everyone knows it is way cheaper to make an existing customer to buy again than to find new ones to convince. Why is that?

Focusing your marketing efforts on the customers you already have, will reduce your costs and lead to a better ROI, because these customers need a lot less convincing to come buy from your site. Less convincing means less money spend on your marketing strategy.

2. Repeat customers will promote your business

If they keep returning to your products, it means these customers are happy customers and most of them will share their experience with their friends. Word of mouth marketing is the most effective, cheap way to promote your business, because it’s based-on trust and it doesn’t cost you anything. Each time they buy something, they will become more comfortable with you and more willing to make for you a good referral.

3. Repeat customers will increase your business profits

Considering a returning customer doesn’t need to be convinced to purchase more often, they increase the number of transactions and therefore your business profit, spending more money than the ones who only bought once. Make your customer stay longer so he will spend more!

4. Returning customers will help with product expansion

Find more products that you can sell to the customers you have because cross-selling will always work better when you already have established a relation with your target. Try to maintain contact with them by sending newsletters about your new products. Learn how to build an email list from our blog.

Reaching out to your consumer can be as easy as sending a newsletter of your new products. Even better yet, get them to sign up to an exclusive list where they can be the first to find out about new products from your business.

5. A repeat customer is easier to sell to

Most experts estimate that a repeat customer has a 60%-70% chance of converting, comparing with an average conversion rate that is usually between 1% and 3%. So, the more returning customers you have, the less you spend on your conversion strategy.

6. Repeat customers spend more with every purchase

Not only a repeat customer will come more often, but research suggests he will spend up to 70% more than a new one, especially if he is completely aware of all the services that you provide.

7. Repeat customers spend more at key times

There are key times that play a big role in the success of E-commerce. Most of the marketers manage to make most of their revenue during Christmas or Black Friday, with seasonal products. According to Adobe, it seems that an average shopper will spend a 17% more per transaction during the holiday season.  A repeat customer will spend even more, up to 25% more per transaction during this season rush. A repeat customer is loyal and will remain like this even through economic times.

8. Repeat customers are less price sensitive

A research conducted by John Dawes from the University of South Australia revealed the fact that repeat customers are half sensitive to a change in price comparing with a new one. So, even if most of us believe that online shoppers are usually expecting bargain, if the customer trusts you, the price stops being such a big issue.

9. Repeat Customers are your most staunch brand advocates

It’s a psychological thing that people need to gain approval from their friends and when they like something it’s very possible that they will share that thing with their social circle. A free promo about how wonderful your products are and what a nice experience they had with them will grow your business exponentially.

10. Repeat customers typically make up the majority of your business

With more than half of your revenue coming from a return business model, it is very important to do your best, making your clients loyal. Don’t forget to encourage your existing customers to always come back, but be careful how often you entice them.

Use CRM tools to analyze their journey and discover more info about them, try to stay relevant and set up loyalty program for repeat purchase. This way, they will not only buy more from you, but they will buy less from the competition.

In conclusion, a returning customer it’s a real treasure for your business!  They are more engaged, they drive more conversions and provide most of the referrals. If you are looking for more ways to grow your business and keep your customers coming back, contact us at  

photo source: Unsplash

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