When it comes to running a business, which is more important—attracting new customers or retaining existing ones? While it's true that getting new customers is an effective way to pull up your bottom line, customer retention can earn you twice as much—if not more! Repeat customers are invaluable to sustainable business growth. In this blog, we’ll be going over what repeat customers can do for your business.
Without further ado...
Firstly, repeat customers tend to spend more during succeeding store visits after their first purchase, and they usually have a higher average order value than first-time customers. According to a report from Manta and BIA/Kelsey, they spend 67% more than newcomers!
Retaining loyal customers is where you'll find long-term value. For every repeat purchase, they build emotional commitment to your business and are 50% more likely to try new products you release. In the long run, repeat customers can help you prevent high churn rates and acquire higher-quality customers!
And speaking of commitment, building an emotional connection with them through loyalty programs or excellent customer service makes them easier to sell to. The average conversion rate sits at around 1% - 3%. Can you guess the conversion rate for repeat customers?
It's a staggering 60% - 70%!
It just goes to show that when customers trust your brand, they’re more likely to make the purchase. Repeat customers are also more likely to promote your business and share them with their friends, which leads us to our next point.
Preach!
Repeat customers give you word-of-mouth marketing, which is one of the most effective ways to reach new customers. Did you know that 83% of buyers trust personal recommendations from friends or people they know? Repeat customers' organic promotion can do wonders for your marketing! And this doesn't just mean that they rake in more sales for your business—you also cut down on your cost per conversion!
And if you didn’t already know, investing in existing customers costs less than getting entirely new customers. Studies show that it costs 5 times more to attract new clients and 16 times more to get them to spend at the same level!
This guy gets it.
In summary, repeat customers don’t just spend more on your business. They also give you organic customer acquisition and save you money in marketing. What’s not to love?
We hope this blog post helped you understand just how vital repeat customers are to your business’s success. Follow our blog for more insightful articles. Till next time!