Converting new customers to repeat customers

It costs a business significantly more money, time and resources to get new customers than it does to retain existing ones. Surprisingly, however, only a few businesses actively work towards building strong relationships with new customers.

Most businesses with a large, loyal customer base will ultimately be more successful than businesses with once-time customers. Here a few tips you could try to build brand loyalty for your business and convert new customers to repeat customers:

Establish a loyalty or rewards program

Establishing a loyalty program, such as offering discount cards or rewards for completing a certain number of purchases can help encourage customers to choose your business over other competitors. Loyalty programs can also extend to promotional partnerships. If another business in your area sells a product that compliments products you sell, you could form a partnership with that business whereby each time one of your customers makes a purchase, you give them a promotional voucher for the other business. The other business does the same with their customers, and gives them a voucher for your business. Both your businesses will share customers and will ultimately help increase sales. Customers will also appreciate the partnership because they receive a benefit they would not otherwise get.

Keep in contact with customers

One of the easiest ways to help retain existing customers is to stay in contact with them. Depending on the type of business you run, you could for example, offer customers the option of subscribing to a newsletter.

Follow up on transactions

Businesses that sell expensive items (such as cars), or those that sell items involving extensive pre-purchase decision making by a customer (such as choosing a quality carpet cleaning business), may benefit from following up customer purchases. Sending a letter thanking the customer for their purchase and outlining some of the benefits of the product/service they purchased can help combat post-purchase dissonance (customers being unsure of whether their decision to purchase an item was the right choice). Doing so can help build brand loyalty and encourage the customer to return in the future. When following up on a customer's transaction, only do so when it is appropriate and where the customer has expressly allowed you to contact them/send marketing material in the future.

Provide an easy refund option

Some businesses have found that offering a "no-questions-asked" refund policy, in addition to refund requirements set out by law, can build brand loyalty and trust with customers for future transactions.

Make quality service an element of your brand

Providing quality service to a customer means more than helping them complete a transaction. If someone contacts you with an enquiry, even if it is unlikely to result in a sale, try to assist them as much as possible. Many of those people will appreciate your assistance and it can help increase their awareness of your brand and could result in a future transaction.