Customer loyalty guide | Create repeat customers

In the world of business, where the focus often leans heavily on acquiring new customers, the value of repeat customers can sometimes be overlooked. However, the truth is that repeat customers are the lifeblood of any successful enterprise. Repeat business benefits not only include a contribution to consistent revenue streams but also the creation of organic brand ambassadors, word-of-mouth marketing and the fostering of a sense of loyalty that can withstand competitive pressures. Acquiring a new customer can cost up to five times more than retaining an existing customer and increasing customer retention by 5% can increase profits from 25-95%. It’s clear that it is essential for any brand looking to survive the odds to understand the importance of repeat customers and implement customer retention strategies to increase and retain their loyalty.

Who is a repeat customer?

They are individuals who make multiple purchases or engage in multiple transactions with your business over time. Unlike one-time customers who may only make a single purchase, repeat customers demonstrate a pattern of loyalty and ongoing patronage that is essential to the long-term success of your business. Brand loyalty is essential for increasing customer lifetime value.

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Why are repeat customers important?

The importance of customer loyalty should not be ignored. Building customer loyalty can be a boon to your business as it can add to your sales, not once but continuously. If your brand can create and sustain a good customer experience, they will make sure to return for future purchases, increasing their lifetime value as a customer to your business. Furthermore, these customers tend to be passionate about the brands that they are loyal to which leads to great word-of-mouth marketing. Let’s take a look at the specifics of how they can benefit your business.

Consistent Revenue Streams:

Retaining loyal customers can help you build a reliable source of revenue. Unlike one-time buyers who may make sporadic purchases, repeat customers demonstrate a level of trust in your brand that leads to consistent patronage. Their regular purchases contribute to stable cash flow and provide a solid foundation for business growth and expansion.

Reduced Marketing Costs:

Acquiring new customers typically involves substantial marketing expenditures. In contrast, retaining existing customers is more cost-effective. Repeat customers are already familiar with your brand, requiring less persuasion to make a purchase. By nurturing these relationships, you can increase your sales without extravagant marketing spending and achieve higher returns on your investment.

Brand Advocacy and Referrals:

Satisfied repeat customers are likely to recommend your products or services to others, increasing your brand awareness with minimal cost. Their positive experiences serve as powerful endorsements, attracting new customers to give your business a shot. In essence, repeat customers become brand ambassadors, extending the reach of your marketing efforts and strengthening your reputation within the marketplace.

Insight into Customer Preferences:

Over time, repeat customers provide valuable insights into their preferences, behaviours, and needs. These customers are generally open to engaging with your brand by taking part in surveys, focus groups and so on. By analyzing their purchasing patterns and feedback, you can tailor your offerings to better meet customer expectations. This customer-centric approach not only enhances satisfaction but also fosters long-term loyalty.

How can you create repeat customers?

Learn how to create repeat customers for your small business and establish a steady source of income

Every brand out there is looking at ways for how they can reach out to and connect with their customers. Since the returns on investing in repeat and loyal customers are so high, the competition is fierce. So how can your brand set itself apart from the rest and secure its loyalty? Well, you can use some of these customer satisfaction tips.

Deliver exceptional customer service:

Building strong relationships with customers begins with delivering exceptional service at every touchpoint. From prompt responses to resolving issues swiftly and courteously, prioritising customer satisfaction at every interaction can make them feel cared for, encouraging repeat purchases. If you strive to exceed your customers' expectations through excellent customer relationship management, you'll leave a lasting impression that encourages them to return again.

Amazon does a great job with its customer experience. By offering quick and easy product returns/exchanges, they are able to solve customer issues promptly. They go a step ahead to optimise the UI/UX of their marketplace to ensure that their customers have an easy and seamless shopping experience.

Personalise their experience:

Personalised customer experiences can make each customer feel valued and understood. Utilize data analytics to segment your customer base and tailor your marketing messages, product recommendations, and promotions to their specific preferences. This can foster a deeper connection with your brand, increasing the likelihood of repeat purchases.

The Souled Store has managed to stay ahead by constantly identifying niches with a strong audience and finding ways to fulfil their needs. The brand keeps a vigilant check on the pulse of the community so as to stay ahead of wants. From their fashion preferences to their interests, The Souled Store makes sure that their offerings always match their customers' current wants. For example, when consumers made purchases of Harry Potter merchandise, the brand went ahead to include free memorabilia like a Hogwarts acceptance letter or a copy of the Daily Prophet to show they knew their audience and their interests well.

If you’re wondering how to go about customer segmentation we have just the things that can help you get started.

Reward Loyalty:

Strategies for customer loyalty should never be overlooked. Loyalty programs are a great way to incentivize repeat purchases and reward customer loyalty. By offering points, discounts, exclusive offers, or VIP perks to customers, they will consistently choose your brand. By acknowledging and appreciating their continued support, you'll strengthen the bond between your brand and its most loyal advocates.

Retaining customers in e-commerce is no easy feat but Bewakoof has been able to stay ahead of its competitors by creating the Bewakoof ‘Tribe’. For a minimal subscription price, these members get access to exclusive perks like offers and cashbacks, early access to sales and collections as well as Tribe-only giveaways, contests and more.

SmartBiz by Amazon knows the importance of offering benefits to loyal customers. You can now create a website for free and get the option to create such discounts and coupons specifically for existing or repeat users which is easy for sellers to set up and even easier for customers to avail. Set up your fully functional e-commerce website today, without needing any complex coding or design knowledge. Try it out completely for free until Sept’24.

Stay Connected:

Maintaining regular communication with your customers through various channels, including email, social media, events and so on is essential for your brand's long-term success. It keeps your customers informed about new products, special promotions, and relevant content that adds value to their lives and keeps your brand top-of-mind.

Ras Luxury Oils does a great job making sure that their customers are always updated about what’s happening with the brand by making use of customer engagement tactics. From emailers to regular social media campaigns to WhatsApp campaigns, the brand manages to distinguish itself from its competitors by making its audience feel involved across channels. They create brand updates that are direct messages from the brand’s founder and CEO, Shubika Jain creating a more personal connection between the brand and its consumers. They even share stories from their farm to give their audience a peek at the back end of their production.

Seek Feedback and Act On It:

Customer feedback for retention is a game changer because it can be an invaluable source of information for you to understand your customers' experiences, preferences, and areas for improvement. Whether through surveys, reviews, or direct communication, by attentively listening to their voices and taking actionable steps to address their concerns can make them feel heard. By demonstrating a commitment to continuous improvement, you'll foster trust and loyalty among your customer base.

The activewear brand Bliss Club has managed to build a loyal customer base in an incredibly short period of time. This is owing to the fact that the company continuously improves upon its designs by addressing the issues faced by its users. The brand noticed that women’s activewear didn’t have pockets, leaving women to worry about where to store their minimal belongings while in the gym. The brand was quick to introduce leggings with pockets that were large enough to hold their things but still not bulgy.

How can you retain repeat customers?

Image shows an Indian business owner with a piggy bank and him inserting a coin into the piggy bank.

Once you acquire these customers the new problem that arises is how to make them stay. It’s imperative that you give your customers a reason to return and you can do that in many ways.

Retargeting: Use learnings from past purchases to retarget customers with similar products that can prompt them to return to your store.
Nudge: Make use of wishlist items to target ads that can tempt customers to browse your store again. You can also target consumers to checkout products abandoned in their cart to increase sales.
Referral Programs: Offer users a chance to win a coupon by sharing the brand with a friend can not only help your brand reach more customers but also push your current customers to make another discounted purchase.
Incentives: Once a customer has made a purchase, share a coupon code with them that offers them a discount on their next purchase. By adding a short expiration date for the coupon, you can push them to make a second purchase sooner rather than later.
Basket Building: Encourage customers to add more items to their cart before checking it out by offering discounts redeemable on a minimum order amount. For example, offering 10% off on a minimum order of Rs.1000 can encourage customers to add items till they cross that mark, even if their earlier intention was to just purchase one product.

But while these strategies are helpful in convincing customers to return, they will only consider if the following is achieved.
Stay consistent: Maintain high standards of quality and reliability across your products or services at all times. Consistency breeds trust, and trust is essential for fostering long-term relationships with customers. By delivering consistent value and reliability, you'll instil confidence in your brand and encourage repeat patronage.
Keep adapting: Continuously innovate to stay ahead of evolving customer needs and market trends. Anticipate changes in consumer preferences and adapt your offerings accordingly to remain relevant and competitive. By demonstrating a commitment to innovation and adaptation, you'll retain the interest and loyalty of repeat customers in a dynamic marketplace.
Build a community: Foster a sense of community among your customer base by creating opportunities for engagement and interaction. Whether through online forums, social media groups, or exclusive events, encourage customers to connect with each other and with your brand. A strong sense of community fosters a deeper emotional connection with your brand, increasing loyalty and advocacy. Making use of loyalty program ideas can greatly benefit a business.

Effective customer retention techniques can be the real difference for a brand's long-term success, creating a loyal customer base. Repeat customers play a pivotal role in the success of any business and by recognizing their value and implementing strategies to increase and retain their loyalty, businesses can drive sustainable growth. By prioritizing exceptional customer experiences, personalization, and ongoing engagement, businesses can cultivate lasting relationships that endure beyond individual transactions. Remember, in the journey to business success, the power of repeat customers should never be underestimated.

Importance of repeat customers and how to keep them coming back