Every business owner, manager, and salesperson should ask this question after every sale, “Am I going to get repeat business from this customer?” Long-term growth and success for a small business are not just based on current sales but on repeat sales that build upon new, current sales. A foundation must be built, enabling sales to increase rather than remain stagnant. Sales growth results from repeat business while stagnant sales result from a continuous cycle of customers in and out…a revolving door of customers with many never returning after an initial purchase.
Customer Retention
It is a well-known fact that retaining customers is far less expensive and more profitable than the process of prospecting to acquire new customers. It makes sense then that every current customer should also be turned into a future customer. Unfortunately, the retention process is frequently given a lower priority than making a current sale. While current sales might present a positive financial picture, future sales can still remain stagnant. This is the reason that every employee involved in sales should be asking the question, “Am I going to get repeat business from this customer?”
Why No Repeat Business?
There are a number of possible reasons for a lack of repeat business. When small businesses are aware of the possible reasons, they can then work to correct deficiencies within their businesses that are a cause of the problem areas.
Quality Products and Services
Businesses must concentrate on providing quality products and services. Customers expect quality for the money spent. Whether a purchaser is a business or an individual consumer, customers have expectations for what they should receive. Customers have little incentive to repeat a disappointing buying experience when quality expectations are not met.
Lack of Communication
Communication can run the gamut from pre-sales to post-sales depending on the product or service, cost, project, etc. Customers do not want to be left in the dark not knowing (1) the details of their purchase, (2) when a product will arrive, (3) when a project will start and stop, and (4) what to expect in the way of after-purchase customer service. A short email or text message can provide quick and necessary information to a customer alleviating purchase anxiety. If a business does not communicate with a customer, this certainly does not prompt a customer to engage in a repeat performance.
Do As I Say
Customers want businesses to back up their words with actions. When deadlines are missed, and products and services are not what was promised, credibility is lost in a real hurry. We’ve all heard the phrase, “under promise and over deliver.” In business, this makes sense. Customers want to be pleasantly surprised. Overpromising and underdelivering create a disastrous situation.
More Bad Business Practices
The list of bad business practices resulting in customers not returning can go on.
· Customers are not pampered and nurtured.
· Customers not remembering a business’s name.
· Businesses not being flexible when necessary.
· Customers are pressured into making a purchase.
· Customers do not understand the benefits that will be derived from their purchase or how a problem they have will be solved.
· Customers do not see anything unique about the business or its products or services.
· Customers not feeling appreciated and having no reason to repeat a purchase.
Repeat Customers or Loyal Customers
Now for a thinking question. Are repeat customers the same as loyal customers? Some might think yes, while others are not quite so sure. There is a difference, however, between repeat customers and loyal customers. Repeat customers, of course, are great for sales, and every business wants repeat customers. These are customers who purchase again for a variety of reasons…maybe, a location that’s convenient or low prices, but there is no emotional connection to the business. Their loyalty only goes as far as the next competitor that has a more convenient location or a lower price.
On the other hand, loyal customers have an emotional connection with the business. Maybe, it is the uniqueness of products or services, or a special bond with a particular salesperson, or the business contributing to a special community or charitable project. So, yes, repeat customers are wonderful; every business wants repeat customers; however, loyal customers are even better.
Keep Asking the Same Important Question
Although the repetition might become boring, the outcome of the same question can produce positive results. After a customer leaves your business, gets off the phone, or completes online order, be sure to ask, “Am I going to get repeat business from this customer?”
