Repeat customers spend 2x on purchase that that of a new customer. According to study, repeat customers are responsible almost half of the total revenue of an ecommerce store.
Businesses spend great deal of money to gain new customers
For years, businesses have spent great resource on gaining new customers but fail miserably in getting more sales on repeat orders. I believe that the success of an ecommerce business largely depends on how your customer base expands and deepens. Customer relationships must be translated into customer loyalty which turns into higher sales of goods and services, as well as a healthier bottom line.
Repeat customers are responsible for 40% of the total revenue of an ecommerce store. Hence, isn’t it automatic that more resource be diverted to get more sales from repeat customers? And yet, this is not happening.
Smart businesses spend a great deal of money instead on how to get more sales from repeat customers
Obviously getting new customer is important because you can’t have repeat orders if you don’t have new customers. But if you have a repeat customer, he comes back to your store again and again. The result of which is increased brand value and brand loyalty, which will ultimately lead to recommended sales. That is your target, recommended sales. Sales made from customer recommendations are as clear as crystal a sign of good customer relationship.
Smart businesses spend a great deal of money on how to get more sales from repeat customers. The reason for this is that, 27% of your customers who made purchase will likely buy from you again. The better stat is that if these same customers make a third and fourth purchase from your ecommerce store. It raises your conversion rate to 54% for repeat customers.
eCommerce spending for new customers is on average $24.50, compared to $52.50 for repeat customers – McKinsey.
That is double the average spent by repeat customers versus new customers! If we put a lot of logical reasoning into it, wouldn’t it be proper to spend double the resource, and double the time and energy to gaining more from repeat customers than gaining new customer? It sounds good, right?
3 Simple Tools You Can Start Using To Get More Sales from Repeat Customers
#1 Get the most out of the sale by turning your sale into repeat sales.
First thing off is that, never assume that your job is done after making a sale! Yes, you have made a sale, that’s fantastic! You are happy about it! Then what? The next thing you do is turn that one sale into repeat sales. What you do after the sale is made is just as important as to what you did before you made a sale. The success of your ecommerce business will depend on how strong and personal your relationship gets with customers. Because customer’s trust leads to loyalty, and loyalty leads to customer recommendation of products. You must make an effort turn that sale into repeat sales. This is what you will find out in the next simple tool.
#2 Devote a great deal of money and effort to get more sales from your repeat customers
While many businesses spend a great deal of money on finding new customers, a smart businessman devoted that same amount of money and effort to retain his customers. The encouraging thing is that, the cost of doing so is much lower than acquiring new customers. It will cost your business 7 x more on average to acquire a new customer than it does to get a repeat sale from a previous customer. Talking about efficiency.
A stable business widens its reach and influence, and not just get people to buy their product and services. Successful ecommerce websites depend on expanding the breath and depth of their customer relationship. Because it has been proven that there is a strong link between high emotion and high performance in buyer decisions. It’s a human psyche thing to be emotional, and that goes the same in buying decisions. Customer shares experiences that really matter with friends and social media. And social media is one of the top marketing avenue that generates more and more leads for ecommerce businesses. Those social media shares and testimonials are going to bring in more sales for your business.
Happy customers who get their issue resolved tell about 4-6 people about their experience. – White House Office of Consumer Affair.
Spend money and resource to finding ways of adding value to your products.
If you have a hard time coming up with a physical “lead gen” product you can give away, try these:
Run a marketing agency? Put your brand on a Sharpie pen.
Run a coaching business? Give people a daily action pad.
Sell shoes? Give away a shoe bag.
Sell Web development Services? Provide free modules and free installations!
The trick is to give away something that makes your main product MORE valuable. Give something out to your customers and see the immense result!
#3 Make your customers your friends
Customers are relational people too. Make them your friends! Just like any other human relationships, friendship with your customers takes work before, during, and after sales!
Why make your customers your friends?
Because you want your customers to bring in other customers. Customers have families, friends, and acquaintances. They are most likely to tell something about their purchase if they have a really good experience with it. They are a FREE talking and walking advertisements for your business!
How to stay friends after a sale?
- keep connected with customers
- answer questions and respond comments quickly
- make sure to thank them wholeheartedly
- offer discount to repeat orders
- personalize your shipping notes(you hand writing will go a long long way)
- ask for their inputs and ideas how to be better
- respect them as your want to be respected
A good ecommerce businessman never assume marketing ends once he has made a sale! Making a sale is only the first step to getting more sales out of your customers. Spend more money and effort on your customers by giving added value to their purchase. Build relationship with customers until they become friends with you.