4 Reasons Why the Repeat Customer is Crucial to Your Small Business Success
Are You Constantly Searching for New Business? Too many small business owners overlook their current customer base in favor of chasing exclusively after *new* business. This is a natural reaction to hard times and unstable growth.
But always being on the “outlook” for new clients and customers can be very expensive! Studies by Marketing Metrics have shown that the chances of selling to an existing customer is 60 – 70% while the odds of selling to a new prospect is only 5-20%.
Reason 1 – Repeat Customers & Clients are Steady Money-Makers!
They provide the immediate income that is the “bread and butter” earnings that all small companies need to survive.
These customers are the ones who allow you to keep the lights on, feed your family and cover your other basic expenses. If treated well they form a core base that can literally last a lifetime!
Reason 2 – Repeat Customers Create Additional Income Beyond the Initial Purchase
Most repeat clients or customers buy more products and services and buy more frequently than they initially intended to.
This is a natural part of the sales process – we all have been subject to the “Oh, what’s that? I gotta have it, too!” syndrome. These automatic combo sales add cash directly to your bottom line.
Reason 3 – Repeat customers also provide social proof
We all have been burned from dealing with unethical service people or buying junk products.
Well so have all your potential buyers!
But satisfied customers provide the necessary social proof (testimonials, referrals and free word-of-mouth and social media marketing ) that boosts your company’s credibility.
And without that credibility and trust – nothing happens – people prefer buy from people they like & trust.
Reason 4 – Repeat customers provide the best feedback
Nothing beats a personal connection from a satisfied client or customer when it comes to growing your business.
If you are at crossroads and are trying to decide whether to add on to your line or upgrade existing products then ask your existing customers what they think.
Happy customers obviously love what you do and since they have spend money on you are NOT usually shy about letting you know when they think you’re on the wrong track!
In fact, it’s in your best interests to listen to their unsolicited advice, too. Good or bad, it’s free feedback! Take it and run with it!
But here is the most interesting fact about repeat customers – A customer is 4 times more likely to defect to a competitor if the problem is service-related than price- or product-related – Bain & Company.
So it’s not the price of what you offer but how you treat them. So repeat customers can create a lot of income for your small business – as long as you treat them well.
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