What Is a Repeat Customer and Why Are They Profitable?

Whether you’re striving to build your business from the ground up or you’ve hit a temporary plateau, you may be evaluating how to increase your company’s revenue.

Like most businesses, you probably place a majority of your time and financial resources towards acquiring new customers. But is this the best way to spend your time and money as a small business? If you’re looking to work smarter and not harder, the best way to do this is by tapping into the power of your existing customers.

Valuing your existing customers is the fastest way to grow your brand. Engaging repeat customers will improve your business’s long-term profitability while building meaningful relationships with your biggest customers.

Existing Customers Will Spend More Money

Because they have already invested in your business, returning customers are far more likely to buy higher-value products or services than new customers. They can also be counted on to buy in bulk. Even more exciting news? The more times a customer visits and purchases from your online or in-person store, the greater likelihood they have to make a purchase the next time they visit.

Existing Customers Are Easy To Sell To

Because your customers’ likelihood of buying increases each time they buy, it makes sense that returning customers are the easiest customers to sell to. While first-time customers are less than 25% likely to purchase for the first time, the probability of a return customer making a purchase continues to increase each time they visit you.

Existing Customers Cost Less In Marketing Than New Customers

Because the probability of a new customer making a purchase is significantly lower than that of your returning customers, you are guaranteed to spend more money in your attempts to market to brand-new customers. Return customers can be easily maintained with thoughtful and valuable rewards programming. Offering your valued customers exclusive discounts and deals for their engagement and loyalty to your shop is far more cost-effective than attracting new customers, and getting those new customers to spend at the same levels in the long term.

Existing Customers Promote Your Business For You, For Free

With marketing costs being higher than ever while resources continue to dwindle, why not let your customers be an advocate for your business? Repeat customers are more than happy to do this, free of charge, in exchange for exclusive rewards. Repeat customers also love your brand enough to refer close friends and family to use the product. They are 50% more likely to recommend new customers to your business than one-time customers.

Building Relationship Builds Customer Retention

Maintaining customer relationships can seem like an overwhelming task with everything else on your to-do list, but it can make or break the success of your small business. The greatest advantage of having a sustained relationship with your customers is their continued loyalty.

Ostana is here to make building meaningful relationships with your customers easier than ever before. Featuring data analytics, rewards incentives, and a virtual town hall all in one convenient interface, track your customers’ spending and create rewards incentives catered to their personal preferences. Connect, engage, and build a community like never before — join the Ostana network.