Strategies for Generating Repeat Business & Increasing Productivity

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  • 0:05 Repeat Customer Importance
  • 1:26 Make It Easy to Purchase
  • 2:15 Send Targeted Emails
  • 3:43 Increase Productivity
  • 4:19 Lesson Summary
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Lesson Transcript
Instructor: LeRon Haire
Many customers have strong loyalties to certain stores, restaurants, and other businesses. What keeps them coming back, time and time again? This lesson discusses some of the methods that organizations use to generate repeat business and how these methods can increase productivity.

Repeat Customer Importance

Jon has been buying jewelry from Charlie's for 15 years. He knows the owner and all of the staff, and appreciates that they know and remember the occasions that are important to him. Any time he needs a special gift, he always goes to Charlie's.

In business, nothing can compare to the loyalty of repeat customers. These customers are the heart and soul of every business. Without them and their repeat purchases, a business is forced to rely solely on new customers. How can a business continue to generate repeat business and increase productivity? Let's take a closer look at some of the strategies that can be used to achieve this.

First, we will look at perks and benefits. To generate profits from a repeat customer, it is important to provide incentives that make the customer want to come back continuously. This can be done by providing perks, benefits, and rewards to those that frequent a business over and over. These perks are designed to serve as a token of appreciation from a business and let the customers know that their decision to return does not go unnoticed. Many organizations fail in this area because they choose to focus their efforts on attracting new customers. Some examples of some perks and benefits include:

  • Buy one, get one free items
  • Free shipping for ordered items
  • Acknowledgement in monthly business magazine
  • Special discounts for preferred customers

Make It Easy to Purchase

Have you ever tried to make a purchase in a store or online, but the process was long and difficult? Most customers want the purchasing process to be as quick and simple as possible. Unfortunately, some businesses have made this process slow and/or difficult. For example, when buying a car, you can't finish the purchase and drive off the lot in 30 minutes, even with perfect credit.

When businesses lower barriers and make the purchasing process easier, customers are more likely to make a repeat purchase. Here are a few methods that businesses can use to make that purchasing process easier:

  • Self-service checkout lines
  • Auto-fill option for online repeat purchases (automatically completes portions of the purchase from information used during previous purchases)
  • Express checkout lines for customers with 10 items or less

Send Targeted Emails

Many businesses currently send mass emails to their customer base. These emails are sent to entice the customer to continue to frequent their businesses. Typically, the emails alert customers to current or upcoming sales, and may include discount coupons to be used at the store or online. In today's hyper-competitive business environment, these types of emails are no longer enough. A business must send a targeted email, which generates purchase suggestions for a customer based on past purchase information and trends.

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