How to Get Repeat Customers for Your Dropship Internet Business
The value of repeat customers for your dropship
internet business cannot be overemphasized.
Repeat customers are the lifeblood of your business. Now, this doesn’t mean that new customers aren’t important, too, because they are. In fact, they’re vitally important.
But, here’s the thing: sales to your repeat customers cost a fraction of what it costs to attain a brand new customer. You spend much less on marketing, advertising and promotions when you get business from repeat customers.
Here is a motivational quote that says a lot about the philosophy behind repeat customers:
“Profit in business comes from repeat customers, customers that boast about your project or service, and that bring friends with them.”
W. Edward Deming 1900 -1993, Management Expert, Consultant
One thing that can help you appreciate the value of repeat customers is to calculate their lifetime value. Calculating Lifetime Value of Repeat Customers
Here is a fairly simple way to calculate the lifetime value of a repeat customer:
Average price of each purchase X average number of purchases made each year X whatever number of years you want to use. So, if a customer spent an average of $50 per purchase and made 3 purchases every year for 10 years, you can say the lifetime value of this customer is $1500.
Not bad. Not bad at all.
But, that isn’t even factoring in the number of sales you make and customers you acquire through referrals from this repeat customer!
It’s easy to see how very valuable repeat customers are and how having a strong repeat customer base can help make your dropship internet a big success.Tips to Build a Solid Repeat Customer Base
So, what are some things you can do to build a great repeat customer base?
Here are some tips for making your first time customers loyal, repeat customers who will come back again and again; and refer their friends, family and coworkers to you, as well.
- Learn all you can about your customers as far as their buying habits. Knowledge is power! Studying the purchases of your customers can open doors to promotions geared toward their particular buying habits. For example, if you sell pet supplies and a customer buys products for dogs only, chances are this customer doesn’t have a cat or a bird, so you’d be wasting your time and theirs to send them promotions featuring those types of pet supplies. Instead, focus on products for dogs. If the customer bought gerbil treats, that will be your focus, etc. You get the idea.
- Offer your customer rewards to make repeat purchases from you. You might give them free shipping for a minimum purchase, or something along that line. The idea is to let them know that you appreciate their business and want them to come back.
- Be sure to have an opt-in email subscribers list and stay in touch with your customers. Send them promotional emails, newsletters, news of contests or sales. Don’t be a stranger! If you get a birth date, it’s a nice touch to send them a birthday e-card with a promotion of some sort as a birthday “gift.”
Take care of your customers and they will take care of you.
Build repeat customers for the success of your dropship internet business!