Encouraging Repeat Business

To keep customers coming back, it helps to regularly remind them of your business in ways ranging from a simple postcard to a private event

by Karen E. Klein

I understand that it's easier and more cost-effective to keep regular customers than it is to attract new customers to my retail shop, which is a storefront and online firm. But what's the best way to encourage former customers to make new purchases? —S.M., Portland, Tenn.

Keep your business on their "radar," so they think of you first when they make a purchase. Then treat them like they're special. After all, they are special to you!

How do you position your company to be foremost in the minds of your "regulars"? Without becoming obnoxious, find ways to keep in touch with your customers. Let them know about sales, specials, or new shipments of products they've purchased in the past. Take a few minutes to chat and get to know them, then send birthday and holiday cards with personal notes. "People are bombarded with all sorts of advertising in all sorts of forms. Add this to the hectic life that today's world brings and people don't immediately relate their desire with a particular business," says Jay Siff of Loyal Rewards. "What's needed is a regular stream of messages from a business for them to build and maintain what's called top-of-mind awareness."

Connect with Your Customers

Of course, before you can stay connected to your customers, you need to know who they are and where to find them. "Surprisingly few of us build a mailing list anymore," says Linda Hamburger, a publicity and marketing consultant with On Call PR. "Where have the guest registers gone? As long as you have legitimate news to report or items of interest, many of us welcome an e-mail or note card with that update."

Another rather obvious but often overlooked method for encouraging repeat business is just asking for it. "So many business owners say they don't get [repeat sales] from previous customers. When you ask if they asked for them, they usually say no," says Al Lautenslager, a marketing consultant and co-author of Guerrilla Marketing in 30 Days. "Pick up the phone, e-mail, or write to former customers, and ask them to return to buy. It's amazing how this works." And while you're at it, Hamburger says, "Don't forget to politely ask them to send their friends your way."

If your physical storefront is large enough, host an event specifically for your best customers. Keep the cost down, Hamburger says, by offering home-baked cookies and juice while you provide a place for your regulars to mingle and shop with like-minded consumers. You can build the event around a sale, a talk by the author of a book about your products or industry, a class you offer for a small fee, or a fundraiser for a community nonprofit organization.

Make Shopping Enjoyable

Don't forget incentives you can offer exclusively to repeat customers, such as two-for-one deals, discounts on upgrades, and freebies. "Those gimmicky pens and calendars really do work," says Hamburger. "Lay in a supply of gifts that you can hand out to special folks as a way of showing that you value their patronage. Even an affordable pen with your logo on it can feel like a gift if it's given judiciously to a select few buyers."

Finally, make shopping with you—online or in person—a pleasant experience that customers will enjoy and look forward to, Lautenslager suggests. "Ask them to come have another pleasant experience or tell others about it so they can have the same experience," he says.

Training yourself and your sales team to gauge customers' personality types can help, Hamburger says. "Ever go to a store where the salespeople are overly solicitous? They greet you immediately when you walk in. Sit or stand at the door and wait. Tail your steps. Say an outfit looks great—when it is clearly a dud?" she asks. "Offer help, but don't push—unless your shopper seeks that type of help."

Karen E. Klein is a Los Angeles-based writer who covers entrepreneurship and small-business issues.