Repeat Customers Or Loyal Customers – Which Type Do You Want?

What’s better – loyal customers or repeat customers?  Is there a difference?  Every business wants to increase their client base by providing value and service.  In today’s marketplace, you have to do more.  You’ve got to provide value, service and…a bonus.  Consumers feel entitled to high expectations at every retail price point and because of the tools available for comparison shopping, they drive very hard bargains.   A recent Experian study in the UK showed that 10% of consumers use their mobile phone in-store to check the price of goods elsewhere before purchasing.  So, it’s necessary to provide an extra incentive to develop an on-going client relationship.   If you’ve got the lowest price, that’s a start.  But other customer benefits can partially compensate for low price to convert one-time shoppers into repeat customers.  The key is building a bridge between ‘repeat’ and ‘loyal’  customers.  Loyalty programs promote this transition.  Loyalty programs are vital to most businesses but especially to online-only retailers who must shave margins down to the smallest percentage in order to compete effectively.  The high cost to acquire a new customer demands that multiple purchases be made by that customer in order for the site to recoup their investment to acquire the shopper initially. There are many types of loyalty programs.  Choose the one that best suits your business model.