Every small business owner maintains a strong focus on customer acquisition; however, few invest as much time and money into customer retention. As the old saying goes, a bird in the hand is worth two in the bush. Still, the vast majority of companies tend to overvalue new business, while undervaluing the people they’ve already won over.
Besides offering continuing revenue, repeat customers are especially good at helping businesses withstand difficult times. They can also become valuable marketing assets, thanks to positive word-of-mouth advertising, which ultimately results in enhanced brand recognition and increased profits.
Keep them Coming Back
Several studies have unveiled some compelling statistics that highlight the true value of customer loyalty. Recently, the New York-based analytics company, SumAll took a close look at how existing clients impact some of America’s top businesses. Among its findings, the company reported the following key revelations:
- The most stable businesses received 25 to 40 percent of their total revenues from repeat business.
- Companies with at least a 40 percent level of repeat customers generated 47 percent more revenue, when compared to similar businesses with only a 10-percent retention rate.
- On average, returning customers spend 2.6 times as much as one-time buyers.
Generating Customer Loyalty
It’s clear that repeat customers provide superior benefits that help small businesses thrive and grow. But, how do fiscally-responsible companies generate customer loyalty without going over-budget?
Research has shown that promotional merchandise is especially effective at increasing customer retention. A study by the Advertising Specialty Institute (ASI) found that promotional items drastically improve a company’s success by giving existing customers a more favorable opinion of the enterprise. That said, while it’s clear branded items encourage repeat business, some are more effective than others.
A Modern Approach
To get the most bang for their investment dollars, businesses need branded items that bring a greater ROI. Invariably, modern consumers prefer promotional materials that provide real, lasting benefits. In turn, more and more businesses are moving away from traditional items, such as refrigerator magnets, coffee mugs and office supplies, in favor of branded USB drives, which offer significant benefits that stand the test of time.
The high prevalence of modern mobile devices has led to an increased need for data storage. These days, consumers are always happy to receive USB drives to hold their important image, video and document files. In turn, they tend to hold onto these valued items for much longer periods of time.
The ultimate customer freebies, branded USB drives provide small businesses with an effective way to maintain their hard-won clients. They’re also especially cost-effective for companies that want to promote customer loyalty without losing out on new opportunities.