According to a report by Marketing Metrics, the probability of being able to sell a product to a new customer lies between 5% and 20%. However, this rate can shoot up to as much as 60-70% if you are trying to resell â€“ sell products/services to existing customers. Customer loyalty thus isnâ€™t just a buzzword but a crucial tool towards business success.
While attracting new buyers and entering new markets is essential for business growth, it is the existing clientele who can help you reach your goals. It isnâ€™t just about impacting sales but also their stand as an advocate for your brand (given that they liked the product).
Existing customer are more likely to buy a product and are already knowledgeable of the product/service. Pitching to them is thus more cost effective than trying to describe a product/service to a potential and new customer.
So, what can businesses do to ensure that existing customers become repeat buyers?
Well, here are some of our top tips:
1. The website
The first area that you should focus on for repeat purchases is your website. It is not just the face of your brand but the most important means of communication between the customer and the business.
The general rule is to continuously optimize, improve and come up with new ideas. The idea is to make it easier for the customer to buy online and this is done via a fast platform, intuitive interface, and marketing campaigns that target existing buyers.
Cross selling, shopping cart reminders, special discounts, subscription, social sharing and similar ecommerce tools boost your opportunity.
2. Email marketing
When you have already sold a product to an existing customer, itâ€™s likely that you have collected important communication lines like emails.
The first means of communication via emails is the transactional mail but thereâ€™s a lot more you can do with your list of subscribers. Emails offer amazing open rates and can be the tool to spreading information about new products and discounts.
Other unique opportunities with email marketing include cart abandonment emails, â€œitems back in stockâ€ emails, win-back emails, special offer emails, and other useful information.
3. Social media marketing
Social media has come to become a highly important to reaching out. Customers are investing a lot of time into it and as a brand, you can use this trend to promote your product and add credibility to your website. User generated reviews are the first thing businesses need to concentrate on.
Any comment on the purchase experience can be used as a marketing tool for acquiring new customers and reaching out to more number of potential buyers. Further, when a brand directly communicated with a customer over social media platform, it acts as an encouragement for trust building and loyalty.
Some innovative brands even introduce strategies like social media contests, to boost engagement.
Social media platforms like Facebook also offer paid advertising. If you havenâ€™t experimented with them yet, itâ€™s time to do so. The returns can be highly satisfying.
4. Lastly, your products
Finally, it is the product that sells and defines the type of business you are. It is necessary that you offer an unforgettable experience to benefit from repeat purchases.
It is also important to remember that a low quality product or a poor shopping experience can be as disastrous as modern buyers donâ€™t shy away from sharing their views.
The moment a business has been able to achieve repeat purchase; itâ€™s an indicator of its growth. Invest a lot of resource and focus into it.