Recurring customers are every Connecticut business’s dream. You win them over just once, and then you’ve got a loyal customer for life…a reliable income stream. The recurring customer, especially these days, is just that: a dream.
Recurring customers and how to keep them
Every customer was once a “sales prospect” and your job was to match your product’s (or service’s) benefit with your customers’ needs. That’s the traditional sales process in Connecticut.
Some products are purchased one time and solve the customer’s problem. There’s no need to purchase again, at least any time soon. Examples could range from a leather briefcase to a violin, ice skates to a tuxedo, a chess set to a lawn mower. Are most of your customers “one time” buyers? Click here for the types of marketing that will help them.
Other products are different: they’ll get used up, or wear out, and the customer will need a replacement. You hope that they’ll get all their replacements from you. You probably purchase the same shampoo, and the same golf balls. You return to the same doctor or dentist, the same bank, your IT provider and the local pizzeria or tavern. You do it for the product, and the “customer experience.”
Repeat customers are worth special efforts
Your business has about a 13% chance of making a sales to your next sales prospect. It costs 5 to 8 times more to sell to a new customer in Stamford than to retain an existing customer. And you have a 60-70% chance of selling more to a repeat customer in Hartford. Repeat customers also spend more…up to 300% more than one-time customers. I was surprised to learn that loyal customers refer 50% more prospects to you than one time buyers!
How are you boosting repeat sales?
There are lots of ways that businesses try to nurture repeat customers and repeat sales. You’ve seen them all:
- Loyalty programs, and frequent shopper deals from DSW, American Airlines, Starbucks, Macy’s, Sephora, TOM’s, and Amazon Prime. My favorite pizzeria has a “punch card.” After I buy 9 pizzas I get the 10th pizza for free.
- Another is by analyzing your customer’s buying patterns to promote “add on sales.” Amazon and Barnes & Noble do this by telling you “customers who bought what you just bought often buy these items, too.”
- Companies of all sizes try to create loyalty by connecting with customers on social media.
- Getting personal: send them hand written notes and birthday cards. I know a great Thai restaurant that gives you a discount on your birthday (they’ll discount your total order by a percentage equal to your age: if you’re 20 it’s 20%. If you’re 50 it’s 50%!)
- Bed Bath & Beyond sends post cards with a 20% discount to their existing customers to encourage them to return
- Some car washes offer “pay one price” for unlimited washes each month.
How about you?
Cost Effective Strategy
One of the most cost-effective ways is with information. It could be an e-newsletter, a personal note in the mail, or even suggested recipes. Campbell’s Soup used to offer a cookbook of recipes that used their soups as ingredients.
E-commerce sites like Amazon uses AI to predict additional purchases you might like make based on your buying history. AI generates suggestions in “real time.”
What if your customers contact you by telephone? Consider using messages on hold with promotions targeted to “repeat” customers. Unlike customized messages, which include basic information about your company and your offerings, wustom-written messages specifically written for loyal customers assume that telephone callers don’t need to be introduced to your company: they’ve already bought from you and can focus on customer nurturing.
They focus on second tier sales: repeat sale, upgrade to more profitable products, and “add-on” products (“Got milk?”). This strategy has worked in industries as diverse as
- Auto Repairs
- Commercial Bakery
- Legal Offices
- Plumbing or Electric Supply
- Credit Unions and Banks
- Moving Companies
- and more.
Are you missing out?
Are you missing out on maximizing the sales potential of Recurring Customers? Maybe it’s time to find out more about the marketing tool designed with your sales opportunities in mind. Informer Messages on hold. Get answers to our Frequently Asked Questions by clicking here. Click here to email us. In Greenwich and Westport call (203) 655-3920.
Nationwide call (800) 862-8896.
