Often, as businesses, our goal is to grow by expanding our customer base. Of course this is key, but it is also equally or perhaps even more important to focus on our existing customers. Many businesses, both brick & mortar and online, don’t think about customer retention and why repeat customers are so valuable.
Repeat customers usually spend more money than new customers. Why? If you have a customer who keeps coming back, there is something about your business that they appreciate and trust. They won’t hesitate to spend more money with your business over time. When they want to return and support your business, it is likely they are also telling their friends and family about you. Word of mouth is the best kind of advertising because it is free, and other people trust your customer who in turn trusts you. The more purchases an existing customer makes, the more likely they are to refer your business to others.
Free advertising isn’t the only reason keeping your current customers costs less than advertising to new customers. There are so many ways to attract a repeat customer back as opposed to starting from scratch with people who know nothing about your business. Increasing how many repeat customers you have means you won’t have to spend as much time and money on bringing in new customers. So, what are the best practices for repeat customers?
It’s all about building the customer experience. Relationships with your customers are so important! Paying attention to them and learning who they are is just the beginning. We recommend implementing these best practices for repeat customers:
1. pay attention to your customers.
What are they buying? How much are they spending? How often are they shopping? Keeping customers records lets you know when they became a customer, how often they purchase, and how much they typically spend. This is information you can look for in a brick & mortar store and online. If you are a designer, is someone who buys your patterns posting and sharing about them? Do they like your layout and how you present them? These are a few things that potentially indicate customer loyalty.
2. get to know your customer on a personal level.
Learn what they love. Get to know about their lives, about their loved ones, and what is important to them. If they are “just a customer,” they will see the relationship as transactional. Actively listen and ask relevant questions. Always be honest with them. As a designer, you can do this online by engaging on social media when someone tags you or uses your hashtag. Encourage makers using your patterns.
3. you can never be too good at customer service.
There are so many opportunities to provide excellent customer service. Responding to phone calls and emails in a timely and respectful manner is key as a brick and mortar. Online businesses translate that to messages and emails. Issues inevitably arise, so handle them with effective communication and friendliness. Make sure the customer checkout experience is smooth and that you offer a variety of payment options.
Customer service doesn’t end with a transaction. Genuinely thank your customers with a note or a message on social media, or follow up email to their purchase. If you ship your goods, a handwritten note with an online order goes a long way. The relationship that the customer values is the one that doesn’t end with a sale.
4. relationships go both ways.
Ask your repeat customers to test out a new product or service. They already know about your business, so having them “check out this new thing” can be fun and exciting. When you’ve developed great customer relationships, they like to be a part of your business. A great way to do this as a designer online is by engaging customers as preview makers. Perhaps offer them a design you have coming up as a thank you for so much support.
It may not sound helpful, but other ways customers help your business is through feedback, even when it is negative. A complaint is always an opportunity to make something better. Act on customer feedback right away. Show your customer that you care about them by listening. Even if it seems like a minor issue, remember it is important enough to them to bring it up. Spending time addressing complaints is worthwhile so you don’t lose the trust you’ve spent time building up.
5. reward and incentivize repeat customers.
One of the best ways to do this is through a loyalty program. Loyalty should always be rewarded because it is your repeat customers who keep you going. This can be in the form of discounts, coupons, or points on purchases. Make it as easy as possible for them to both sign up (do this during the check-out process) and participate (the less they have to keep track of, the better). A loyalty program is also a great way for you to collect information on your customers.
For pattern and pdf sales, offer a discount for buying several patterns at once. If they like your style and designs but are on a budget, this could be a great way to increase sales while providing value to the customer.
Invite your most loyal customers to a private party. Give them the first chance to shop your next big sale. VIP events can be small or large depending on your business size, and tailored to your best customers. This is easier as a designer now than ever before. Host a zoom stitch night where you preview a new design and everyone who attends gets a door prize or discount on the new design. You could host a make-a-long to celebrate a new pattern with zoom stitch nights. Your repeat customers deserve to feel special!
6. keep your business on their radar when they aren’t there.
Email newsletters are great for repeat purchases and to remind customers about you when they are going about their lives. Build an email list both online and in your brick & mortar or at markets and events at check out. Don’t forget to always get your customers’ permission to send them email communications.
Make sure your email communications provide value to your customers and aren’t strictly promotional. Maybe share a new tip or trick in addition to telling them why they need your latest product or service. Create segmented emails is possible to target your customers with specific information that might interest them. You can also email them after a purchase with suggestions of things they might like.
7. keep things new and fresh.
Consider ways to offer a slightly different experience from the norm. Give customers a customized shopping experience as much as possible by offering local and special products and services. Offer ideas on new yarns just launched or ways to update an older pattern they may already own. Keep them interested and always wanting to come back for more!
These are all pretty doable, right? The most important thing to remember is that YOU are in control of your business. In the age of online reviews, your business’ reputation is everything. Be a trusting and caring company. Maybe even go a step further and consider being a positive part of your community by joining your local chamber of commerce and giving back whenever you can. Treat not only your customers well, but your team and collaborators, and you will see the growth follow.
Don’t forget that every loyal customer your business has was once a new customer. When new customers come your way, you should absolutely give them the best possible first impression. Use these best practices, and you’ve got yourself another repeat customer!
