Repeat sales are one of the main keys to effective business. And it does not matter who you are - a large organization, an agency, an entrepreneur, or a freelancer.
If your business is not focused on one-time or casual sales, but based on long-term relationships with clients, you need to take care of the system of repeat sales.
Unfortunately, many companies and entrepreneurs forget about it, especially when they are focused on a sales funnel.
For all the simplicity of using the sales funnel, it has one significant disadvantage: the funnel ends right at the sale itself. Although, in fact, there are at least 2 more stages: the repeat sales stage and the word-of-mouth marketing stage.
Let's look at the 2 main reasons why repeat sales are important.
Customer lifetime value
Every customer has a lifetime value. This is a measure of how much money a customer can bring you over the lifetime of the relationship (or over the course of the customer's life cycle).
For example, in car sales, the average customer buys 10 cars over his lifetime. In addition, the clients’ spendings on the maintenance of the car are equal to the amount of a third of its price.
Therefore, it is very important to try to turn the buyer of one car into a customer for life.
Customer Acquisition Cost (CAC)
Customer acquisition cost is a cost of attracting a new client. It is one of the most important marketing metrics for any entrepreneur.
For some companies, CAC may be recouped only on the 3rd or 4th purchase. And this underscores the importance of repeat sales once again.
Look at some telling statistics on this point.
- 61% of SMBs report that more than half of their revenue comes from repeat customers, rather than new business.
- On average, loyal customers are worth up to 10x as much as their first purchase.
- It can cost 5 times more to acquire new customers than it does to keep current ones.
- A 5% increase in customer retention can increase a company’s profitability by 75%.
Tips to create a successful loyalty program
So, one of the successful ways to retain a customer is to introduce a loyalty program. Usually free merchandise, travel, and automatic discounts are the top reasons for clients to sign up for a rewards program. Here are a few tips to create a program that customers will love:
- Create a program that offers discounts to loyal customers. It is known that 57% of customers sign up for a program to save money.
- Set up a technology-based loyalty program, because 60% of consumers say they’re more likely to join a loyalty program that’s tech-savvy.
- Make sure the program is tied to your sales system, so it’s easy to use.
- Look for a program that allows you to communicate with your customers as well.
By the way, ReComm plugin can help you to implement all these steps. For free!
Our free plan gives you a service that allows to collect video testimonials on the website from the customers that already bought your products. A loyalty program is integrated, so that you can offer a discount coupon to the client. Also you can publish received videos in social media.
You can try ReComm free plan to increase loyalty and repeat sales, as well as to raise engagement and conversion rate of new customers.
