In the business world, the most valued customer is a return customer.
The statistics are swimming all over the Internet – although return customers may be only a small fraction of a business customer’s base, they account for an average of 22.6% of revenue. The numbers will vary across industry and from store-to-store, but the facts remain almost universal. Repeat customers are easier to sell to, they spend more, share more, and offer valuable feedback.
Yet in spite of this, many companies devote more energy acquiring new customers than keeping old ones. And while a large, expanding customer base is a great boon, the math argues that clients who stick around bring in steadier and higher profits than one-off sales. After all, across all industries, return customers spend 15 percent more than new customers on any given order.
But keeping these valuable customers around isn’t always as simple as it sounds. It can take time, thought or even a personal touch to convince clients to come back for round two. Small and growing businesses – in their pursuit of faster growth – can overlook the basics of coaxing customers back.
Learn the ins-and-outs of bringing customers back by tuning in to PRP this Friday between 1-2 p.m. for our Biz503 episode “Creating Return Customers.” Co-hosts Mike Rogoway, business writer for The Oregonian, and Cindy Tortorici of The Link will lead a discussion on the value of repeat clientele, and methods of keeping customers around.
Joining us this week:
Kellie Poulsen-Grill – Happiness Expert, Motivational Speaker, Author, and Songwriter
Chad Craig, Vice-President, Retail and Grow Operations at Kaya Shack
Jon Rich, Customer Experience Manager at New Seasons
Greg Hessong, Vice President at Response Capture
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