When it comes to marketing and generating more revenue, I find that most business owners are focused outward.
They’ve carefully established and segmented their target market, and created specific offers and messages for each market segment. They spend thousands of dollars in advertising and direct mail campaigns in hot pursuit of more leads, more customers, and more foot traffic.
A repeat business strategy means focusing inward – on the customers you have already converted. You’ve paid to acquire their business, so it’s worth a little extra effort to maximize that investment and get that customer to come back and purchase again.
Generating more repeat business means focusing on the marketing strategies that aim to keep your existing customers instead of purchase new ones – effectively reducing the cost of attracting new customers to your business by spreading it over multiple transactions.
Repeat customers create a community of people around your business that presumably share the same needs, desires and frustrations. The information you gain from these customers (market research) can help you strengthen your understanding of your target audience, and more accurately segment it.
Remember – 80% of your revenue comes from 20% of your customers. Always focus on these customers. They are ideal customers that you want to recruit, and hold on to.