A vast majority of businesses tend to cater their advertisements to new customers. On the surface, this seems perfectly reasonable – the more customers a business receives, the more potential sales they bring in, right?
What many business owners don’t realize, however, is that studies show 80% of a company’s sales are brought in by just 20% of their customer base. This means that, by far, most of your business’s revenue comes from the patronage of loyal, repeat customers. Recognizing the value of your repeat customers can ultimately lead to a more predictable profit cycle, allowing you to better understand your points of success and market your business more effectively.
While businesses will always strive to welcome new customers, shifting your marketing strategy towards your most dedicated visitors can carry a wide range of benefits – and, in turn, they can even market your business to new customers for you. Here are three reasons why it might be wise to target repeat customers in your upcoming advertising campaigns, and how you might be able to do so effectively.
Repeat customers have already proven their loyalty.
Frequent visitors have already shown you that they’re not only interested in what your business has to offer, but that they’re fans of what you’re selling. Your products enticed them to make an initial visit, and your execution ensured that they came back for more.
Since you already know these customers intend to keep stopping by, be sure to communicate with them. Let them know when your shop has a new product available, whether it’s a new ice cream flavor or a featured artist’s work. You might also consider setting up an email list for interested customers, and you should regularly update your website, newsletter, or social media platforms with details about any upcoming deals or events. Keeping your audience in the loop will not only directly benefit your business, but it will continue helping customers understand your brand identity, and this connectivity will keep your business at the front of their minds.
Regulars are most likely to spread the word.
Word of mouth is an extremely powerful marketing tool, and happy customers are likely to invite friends and family to join them on an upcoming outing. They might even be generous enough to leave you a glowing review on social media. This means that your existing audience is promoting your brand on your behalf without even being asked.
Pro-tip: As mentioned, communication is crucial; if your audience attempts to start a conversation with you, be receptive. Thank visitors for stopping by, show your appreciation for positive reviews, and welcome honest feedback.
Consider offering incentives to your visitors.
Discounts, giveaways, and contests all provide unique opportunities for customers to form deeper connections with local businesses. Rewarding those who stop by your venue is a great way to ensure that guests feel as though their patronage is valued. As a result, these visitors are sure to feel more closely tied to your brand, meaning your company has a better chance of resonating with them long-term.
Whether you host a contest that allows community members to suggest a new dish or offer free boba to anyone who fills out a feedback form, taking steps to build meaningful two-way relationships with your customer base strengthens the community at large and can certainly inspire patrons to stop by again in the future. Don’t be afraid to get creative!
ZOOO’s mission is to empower local businesses and consumers alike to connect with their communities. By offering incentives to those who shop local, we aim to increase the number of repeat customers local businesses receive by providing recurring discounts and rewarding visitors with Sound Points whenever they stop by, which they may redeem for gift cards.
If you’re a local business owner in Nevada, California, or Japan, you can pre-register with us today in order to be the first to learn more as we get closer to the launch of our mobile app.
If you’re a consumer interested in receiving rewards for supporting local businesses, pre-register now to be notified when our app is ready to go live!