Getting your business noticed is expensive. As a store owner you've likely spent money on signage, ad space, and branding to make sure your customers know your name. Campaigning is an important part of owning a business, but even more crucial to your success is getting the customers who already know your name to come back, and bring their friends. Most business owners get about 80% of their profit from 20% of their customers. Just a 10% increase in customer loyalty could result in a massive 40% increase in overall business. Here are six tips to increase your average of repeat customers:
1. Make sure your product is worth coming back for.
There is really no substitute for a great product at a fair price. Most people wouldn't be in business if they didn't believe in their product, but there is always room for improvement. Ask your customers for their opinions on how you can improve, and listen to them - they are, after all, the ones who use your products the most.
2. Communicate with your customers.
Most disappointments customers face are because of misunderstanding - they expect a certain price, or a certain service that you can't offer. Clear and polite communication of policies and prices at the beginning of a business relationship can manage a customer's expectations and disappointment - and it can help you weed out customers that may not be right for you.
3. Make your employees happy.
Happy employees treat customers well. Everyone has bad days, but if an employee is disgruntled about their job, they are unlikely to go out of their way to help your business by being nice to customers. Engage your employees in conversation, be patient, and help them feel comfortable coming to you with problems or concerns.
4. Be Reliable and apologize for your mistakes.
If you say you are going to honor a coupon, do. If you say you are going to deliver a product on Monday, make sure it gets there on Monday. When mistakes happen, (and they will) apologize profusely and do what you can to make it right by offering a discount or something for free.
5. Exceed expectations.
Go the extra mile to make your customer's experience great. Deliver a free appetizer for large parties of diners, fold and wrap clothing in tissue paper instead of just throwing it in a bag, vacuum or wash the windshield of a car when you finish the standard oil change, open doors, say hello. Small, unexpected services and gestures of gratitude will make a customer's experience with your business worth repeating.
6. Build a relationship.
Do your best to remember your customer's names and preferences, and engage them in conversation when they visit your storefront. If you have a website, consider starting a blog or e-mail newsletter to keep your customers updated on new products and to communicate your personality and passion for your work. Customers will be more comfortable patronizing your business if they feel they can trust and relate to you.
7. Start a customer rewards program.
Offer discounts to customers who purchase products frequently. Many stores use "buy 10 get one free" punch cards that customers can carry in their wallets to remind them of your business. If you start an email newsletter, offer special deals to subscribers to make them feel like valued "insiders" at your store.
Keeping the customers you have is much more cost effective than trying to create new business every day. Engaging customers in your business and treating them like the valued patrons they are will help you turn first time buyers into regulars, and increase your sales overall.
