Attracting new customers is how your business grows and expands, but that is mostly the case during „normal“ times. In some more uncertain times, like during a recession and the rise of inflation, gaining new customers can be heavily decreased. That is when you have to turn to your already established base – Repeat Customers.
Customer retention should always be your main drive, no matter what your core business is. But, a recession can drastically change your plans, and customers don't really spend as much as they used to. And when they do decide to spend money, you want to make them return. There should be incentives for Repeat Customers to stay loyal to your brand.
Why are repeat customers important?
There are a few reasons why repeat customers are important and we're going to go through them.
Repeat customers are a consistent source of revenue. This means they are less likely to buy from your competitors and they also drive the confidence of the company.
Repeat customers are going to trust you more than new ones. That way it is easier to sell to them because they already have built some trust with you and they feel that they won't be disappointed when buying your products or services.
Repeat customers provide free marketing. They often talk about their favorite brands, services, and products on social media, and to their friends, family, and colleagues. This actually goes a long way.
Repeat customers possess higher lifetime value. They will generate consistent value over a longer period of time. They will be open to new products you provide for them based on their relationship with your brand.
How to encourage and gain repeat customers?
Help your customers. You need to solve their problems and answer all the questions they have, and they will have a lot of questions. They will also have unusual questions, so it is important to try and find a way to find the best possible answer for the customer.
Creating a memorable experience also goes a long way. Brand recognition is immensely important because your customers can easily associate your products and services with your brand whenever they see your message. By creating memorable experiences that are different and novel, your customers will come back for more because they will crave the feeling you provoked in them.
Provide your customers with more choices. They want to have more options when looking for products and services. When you have everything under one roof, the customers don't have to look elsewhere, and they will stay at your place.
Have a customer feedback mechanism in place. Customer satisfaction surveys and VoC (Voice of Customer) programs are instrumental in peeking deeper into your customers' insights and their experiences. Helping your customers who had problems with some aspects of your product or service can go a really long way and can prevent a lot of churn. Show your customers that you listen and care.
Show your customers that you have a human face. Customers value brands that take a stand and have values. Supporting a cause or making a donation can encourage customers to back your brand and stay loyal to you. Many customers buy based on their beliefs and if the brands don't reflect their values, they won't back them.
There is no unique and secret formula for customer retention.
Every brand has to find its unique way, but there are some important things that brands have to be aware of if they want to succeed. And one of the central points of customer retention is the experience they had with your brand and how you made them feel when interacting with you. If you take care of your customer, you will have a lifelong supporter of your brand.