Larry VanDenHandel on October 22, 2019
Businesses who know the importance of repeat purchases do their best to retain customers. They go to great lengths and even spend large sums of money on activities that would help increase repeat customers and strengthen customer loyalty.
At first, it may seem absurd that companies spend money on people who are already customers. “They already bought. Why spend more for them?” is what some people think. “It’s all just a waste of money. Better spend more on ads to attract new customers.”
Here’s what they don’t know:
A finding from Adobe Digital Index revealed that repeat purchasers bring in a disproportionately large share of the revenue for businesses. To be exact, 40% of revenue only came from 8% of all customers — the loyal ones. Repeat customers seem to convert at much higher rates than potential customers.
So how can you gain those repeat customers? What can you do to increase repeat purchases from your existing customers?
If you think about it, offering incentives is the most logical way to bring customers, old and new, to your store. It’s one of the oldest marketing methods in the book.
Some though are wary of incentives especially discounts and coupons. Without proper planning and firm objectives, discount pricing and other perks could end up hurting businesses instead of the intended purpose of driving revenue.
But when done right, freebies and perks are effective ways of bringing back customers to repurchase. A 2017 research from Hawk Incentives revealed that 92% of shoppers are always looking for deals. Of course, that figure includes your loyal customers as well.