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How to keep valuable repeat customers

How to keep valuable repeat customers

By Julian Chamberlain, Managing Director, Retail Active Mystery Shopping.

It costs businesses five times more to win a new customer than it does to keep an existing one according to one of our recent surveys.

This is why it is vital for businesses to keep those repeat customers happy.And what’s more, repeat customers typically spend a third more than new ones.

Retail Active is one of the UK’s leading Brand Audit and Mystery Shopping Companies with an impressive client list which includes many household names and High Street brands.

The survey was carried out in June this year and polled 2044 businesses in the hospitality, retail and leisure sectors.

Our research proves beyond doubt the value of holding on to your existing customers – especially in challenging trading conditions – when new customers may be difficult to attract.

You have got to offer your customers a compelling reason to come back again and again. To do that you have to keep them happy and give them better customer service than your rivals.

Repeat customers are the heart of every business – and they are far more profitable than new ones. They have a better understanding of your brand – plus they are easier to find and communicate with.

We send out thousands of undercover researchers every year to monitor retail performance standards and the quality of customer service.

This puts us in an ideal position to give expert advice on how to ensure customer satisfaction and create loyal lifetime customers.

We have drawn up a five point Retail Active Guide on sure fire ways to keep your existing customers happy.

1. Always seek to identify and solve complaints quickly. Customers will have much more trust and increased loyalty if you do this.  

2. Keeping customers loyal is critical, so providing a great product and service is vital to success.

3. Front Line is Bottom Line! Keep your customer facing teams highly motivated and focussed. Its worth remembering that every dissatisfied customer will tell up to 10 others of any poor experience.

4. Always look for ways to exceed your customer’s expectations. Often ways to exceed expectations cost a minimal amount and can give huge financial returns

5. Always consider the Lifetime Value (LTV) of a customer. To do this take the average transaction size and multiply this by the number of purchases the customer makes from you each year. Only then can you fully appreciate just how important existing customers are.

It’s always worth asking your team to determine the LTV of the people they are serving, only then will they be able to comprehend just how important those customers are to your business and their future.

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