So many businesses make the mistake of putting all their effort into acquiring new customers.
Whilst acquiring new customers is important for success in any industry, new customer acquisition costs a stack of money and if not done correctly can set your business back.
Concentrating on maximising repeat customers will provide your business with better cashflow and better opportunities to scale!
Here’s why repeat customers are better than new customers in the Food & Beverage Industry.
1. Repeat Customers Don’t Cost You Any More Money
If you have done your job correctly, repeat customers will not cost your business any money to get them back through the doors. If a customer has had a good experience buying from your business, they will be more likely to return to purchase again in the future.
Arguably the biggest benefit of focusing on repeat customers is it will save your business money! You don’t need to spend more to get them back into your business again. The less you spend on marketing, the more money you will have to implement new strategies that escalate growth.
2. Repeat Customers Are Easier to Sell Too
Since they have purchased from your business before, repeat customers are by far easier to sell to. Like mentioned in the point above, if a customer loved your product, service and experience they will want to come back for more.
The benefit of having repeat customers is you do not need to persuade or educate them on your products ads they already know what they want. Research shows 90% of return customers will order the same order. All you need to do is take and fulfil the order as fast as possible!
3. Repeat Customers Will Refer New Customers to Your Business
As we said in the beginning, to achieve success it is important that you maintain your current existing customers and compliment them with new customers. One of the biggest benefits of focusing on repeat customers is they can and often will refer their friends to purchase from you in the future.
Think about it, if a customer has had a great experience at your restaurant, café, wholesale business etc., they will more often than not tell their friends about it who will then in turn be willing to give it a try. Referral customers are king in any industry as they cost your business nothing!
4. Repeat Customers Spend More
This may surprise you to hear but studies show that repeat customers spend 67% more than new customers. In an industry built on margins, the more a customer spends with your business the better!
The number one priority for any business owner is to get customers spending as much as they can when they shop. By focusing on your repeat customers, you will generate on average 67% more revenue on an order compared to what you will get from a brand-new customer.
When you think about how much you normally have to spend on acquiring a new customer, most of the time you won’t receive a return on investment until a second or third purchase. Repeat customers will put your business in a strong position to scale into the future.
5. Helps You Plan
One of the key benefits of maximizing repeat business is it will help your business plan for the future. For example, if you know how often your repeat customers will order and how much they will spend you can forecast and order appropriately. Forecasting will help your business’s operations and will open your doors to greater growth potential.
Whilst new customer acquisition is important, focusing on repeat business offers so many opportunities that will help your business grow. The 5 reasons presented are a few examples of why repeat customers are better than new customers in the Food & Beverage Industry.
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