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3 Ways to Encourage Returning Customers and Repeat Business
When we talk about returning customers and repeat business, we’re describing brand loyalty – when a consumer continues to buy from the same brand over and over again, despite competitors offering similar products or services.
We can all think of brands we’re loyal to. Popular examples include Apple, Coca-Cola and Starbucks. We don’t buy from them because they’re the only option. We buy from them because of our connection to the brand.
I know what you’re thinking. These are huge household names with years of history behind them, not to mention massive marketing budgets! You’re not wrong, but I believe small brands can learn a lot from big business. You too can build brand loyalty and encourage repeat business.
Why is Repeat Business so Important?
Repeat customers provide a reliable, steady source of income. As well as contributing significantly more to your revenue, selling to them costs less than acquiring new customers. On top of this, research shows existing customers spend 67% more on average than new customers (source).
Repeat customers are more likely to trust you, making them easier to sell to because they’re confident in your ability to deliver. This also means they’re more likely to recommend you to others, building your network and generating more income.
So How Do We Build Brand Loyalty?
First and foremost, if you want to encourage brand loyalty, you’ve got to do a good job. As well as providing high quality products or services, your customer experience needs to be seamless and enjoyable. I’ve shared my thoughts on this before…
‘Customer experience is everything, even if your business only exists online. For me, being old school means putting the customer first, solving problems and personalising every experience. More than anything, it’s about real human connection, and the trust, respect and loyalty that comes with it.’ – How Being Old School Can Set Your Business Apart
In my wedding planning business, Benessamy, we’re all about exceeding client expectations. I believe providing a luxury service means doing what others won’t and ultimately delivering beyond our client’s vision.
To-Do: Spend some time looking at your systems and processes. Are they ‘good enough’ or are you going above and beyond?
3 Ways to Encourage Returning Customers
1. Personalise the Customer Experience as Much as Possible
Personalised service means creating experiences that are tailored to the customer’s individual needs and preferences. Personalisation often makes customers feel more valued, which encourages greater brand loyalty.
Personalised customer service can take many forms depending on your business model. If you regularly interact with customers face-to-face, it can be as simple as greeting them by name and remembering key details about them or their enquiry.
If your business primarily operates online, it might mean communicating with customers through their preferred channels, responding to comments and answering questions in a timely fashion. It could also involve using customer data to provide relevant product recommendations or support.
In every situation, focussing on the customer is key. While it’s ok to have one eye on the potential benefits for your business, providing personalised service should always be about offering value and being useful to your clients.
To-Do: Think about your existing customer journey. Is there anything you could do to make it feel more personal? Pay particular attention to things like onboarding and offboarding, client communication and marketing.
2. Gather Feedback and Respond to It
However hard you try you will never get everything right in business. Mistakes and mishaps happen – it’s how you respond that matters. Even when things are going well, if you want to evolve and grow, customer feedback is essential.
Inviting customers to share their thoughts and feelings about your brand or the experience you provide can also help them feel part of your business journey. Seeing you act on their feedback will only deepen this connection and increase brand loyalty.
To-Do: Make sure you have systems in place to consistently gather customer feedback. Allocate time to look at the data and integrate what you learn. If you make changes based on something a customer has said, consider sharing this with your audience on social media or via email newsletters.
3. Reward Loyalty
Rewarding repeat business can further drive loyalty and encourage customers to return again and again. Loyalty programs, discounts and exclusive perks for returning customers are a great way to do this.
Keep it simple so it’s easy to understand and make sure you promote your loyalty program through various channels like your website, social media and email newsletters. You want customers to know they’re eligible to sign-up and start earning rewards.
To-Do: When you’re considering how to reward customer loyalty, return to the other suggestions on this list. Be sure to personalise the experience and regularly invite feedback. Any perks should meet the needs of your target audience, and you’ll want to make sure you understand what’s working well and where there’s room for improvement.