When you provide customers with a pleasant experience, people remember the positive interactions and ultimately come back to buy from your business again—a critical element of inbound marketing.
But, How do you provide an enjoyable experience that inspires repeat customers? And how do you know who your regular customers are?
Why are repeat customers important?
Regular customers keep coming back to buy your products and services. They are also called “loyal customers”.
Repeat customers are important because they spend more money on your business, engage in word-of-mouth marketing to promote it to others, and it also costs less to retain an existing customer than to acquire a new one.
How to identify repeat customers
The best way to identify your repeat customers is to monitor your loyalty programs and calculate Customer Lifetime Value (CLV).
- Customer loyalty program. Your repeat customers are those who have gotten the most value from your loyalty program, regardless of the type of program you have. For example, if you have a points-based program, your repeat customers will have the most points, and if you have a punch card loyalty program, your repeat customers will have their punch cards filled and ready to redeem.
- Customer lifetime value. Customer Lifetime Value (CLV) tells you how much revenue you can expect from a single customer as they shop at your business. The customers with the highest CLTV are your repeat customers because they are the ones who have spent the most.
7 secrets to retain regular customers, according to consumers
- have an excellent product
In a survey carried out, consumers were asked about the factors that made them repeat purchases in a brand to which they are loyal. 77% of those surveyed said that a company that has a great product or service that meets their needs is the number one factor that inspires them to stay.
As a brand, you likely already know the importance of having a product that meets the needs of your audience and sets you apart. A complete knowledge of your audience is the best way to create this type of product.
Who are they? What are their needs and pain points? How will your product meet those needs better than your competitors with similar products?
Iterating and improving your product is also important as customer needs can change over time.
- Offer excellent customer service
Customer service is, naturally, an essential aspect of your business.
Your ability to connect with customers beyond the point of purchase demonstrates a total dedication to their needs and goals. The survey found that excellent customer service was the third most important factor that inspired consumers to become regular customers of the brands they are loyal to.
The two customer service factors that influenced respondents to be repeat customers are:
- Support representatives are quick to respond and provide quick solutions. 60% of respondents said reps who respond quickly and offer fast solutions is the #1 customer service factor that drives them to make repeat purchases. Quality customer service means you’re there for your customers when they need you, and immediate response times improve your service and show people that you’re always there to answer questions. And today, consumers expect immediate answers.
- Customer service representatives are engaged and enthusiastic. Consumers don’t want to feel like they’re bothering a representative during a conversation. They want to speak with dedicated and enthusiastic representatives ready to help them and provide them with the solutions they need, contributing to a great experience. It’s important to continually provide great service to every customer, whether it’s their first purchase or their 100th. A mindset that current customers are already loyal to your brand and don’t need to be wowed by great service can turn them away.
- Prioritize the entire customer experience
Customer experience is everything your customer does related to your business, good or bad, from how you greet them when they walk into the store to how easy it is for them to leave feedback. According to respondents, prioritizing the customer experience is an impactful driver of repeat purchases.
Prioritizing the customer experience is about solving for the customer and going above and beyond to ensure their satisfaction. For example, your regular customers may have a favorite product, but you send them newsletters with announcements and product recommendations to make sure they’re aware of what you offer if new needs arise.
- Remember the information they share with you
Personalizing the customer experience by remembering customer information (name, occupation, etc) and their lives encourages them to stick around. It shows that you are listening and seeing them as more than just a name on a receipt; you are letting them know that they are valued.
- Create successful customer loyalty programs
An attractive customer loyalty program incentivizes customers to stay with your brand. But what makes a successful customer loyalty program? After all, when the program is free and there are no consequences for quitting, what is it that keeps your customers around?
Some key pillars of a customer loyalty program are:
- Offer rewards for various customer actions such as creating an account, signing up for a newsletter, referring a friend, etc.
- Offer rewards that have meaning and value to customers, such as redeemable points.
- Offer different types of rewards as customers have different preferences, such as monetary rewards, invitations to events, donations to causes they care about, etc.
- Make it easy for customers to join and sign up, and have a logical reward and point structure.
According to consumers, the most desirable features of loyalty programs are discounts, points or rewards, and exclusive or early access to products.