"Give Your Customers Reasons to Return"
By Wayne Forster
Published in the September/October 2001 edition of The Costco Connection,

Did you know it costs the average business five to ten times as much to attract a new customer as it does to keep an existing customer? That’s because in order to attract the attention of a potential customer, a business often has to spend oodles of money on marketing and promotional campaigns. And it’s not only the direct costs. The selling process takes much longer on a per-sale basis with a new customer than it does with an existing customer. The new customer needs more information, asks more questions, and takes longer to make a decision.

It just makes good sense, then, to try to get as much repeat business from our existing customers as possible. Repeat sales are cost-effective sales and anything we can do to increase their frequency impacts positively on our bottom line. Here are a number of simple and inexpensive things any small business can do to encourage repeat sales.

1. At the conclusion of every sale, invite the customer back.
2. Whenever possible, arrange the repeat sale at the time of the initial sale. Think of your dentist’s office who always book your next appointment at the end of your visit.
3. Give the customer your business card at the end of each sale, even if you’ve given them one before. It’s a highly effective (and inexpensive) form of reminder advertising.
4. Inform the customer about any future merchandise arrivals or new products and services you plan to introduce.
5. Follow up with the customer shortly after the sale to ensure they’re happy with their purchase.
6. Establish a preferred customer program with “real” benefits for frequent customers. Set a sales threshold to qualify for the program.
7. Keep in touch periodically with your regular customers. As needs arise, they’ll think of you first!

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