Repeat customers are your business’s most valuable asset in increasing revenue and profits. As we mentioned in our blog, The Value of Repeat Customers, your repeat customers can become your most significant source of revenue and profit increase. It’s a powerful resource; even the most prominent brands like Starbucks and Sephora focus on these segments to grow their business.

If you haven’t yet, you should check out our article on The Value of Repeat Customers to fully understand how impactful they can be to your business. And if you’re done with that, let’s talk about getting more repeat customers.

Getting repeat customers is challenging, and it’s creating losses.

 As we mentioned in our previous articles, the average customer attrition rate of businesses worldwide is around 20%. Many potential profits for their business are lost from unhappy customers.  

Studies show that by reducing customer attrition rate by 5%, businesses can increase their profits between 25% and 125% — this is a significant impact for small and medium enterprises and could spell the difference between taking their business to the next level or stagnation.

7 Strategies to Increase Customer Retention for Small and Medium Businesses

 Strategy #1: Offer quality products/services

 The number one driver of repeat purchases is the quality of products and services. High-quality products create customer satisfaction, which ultimately encourages repeat purchases.

Hence,  businesses should focus on consistently delivering high-quality products and services to their customers to increase repeat purchases since it takes multiple transactions to build trust. 

Strategy #2: Constant innovation

Your customers have evolving needs and desires in their life. They face new problems and come up with different ambitions. Their motivation to buy and remain loyal to you changes from time to time as they go through life.

For them to become lifelong customers, you need to adapt to their needs and create new offerings that fit their lives better. You need to dedicate yourself to innovating and matching their needs, desires, and motivation so you’ll constantly be a relevant purchase. Studies show that 91% of customers are likelier to purchase from brands that provide them with meaningful and relevant offers.

Strategy #3: High-quality customer service

Customers want to feel valued and important to your business. And one of their measures of how much you value them is how well you treat them when they need something from you.

This is when customer service plays a significant role in keeping your existing customers happy. According to research: 80% of customers believe that speed, convenience, knowledgeable help, and friendly service are the essential elements of a positive customer experience.

By improving your customer service, you’re also increasing the chances of customers staying with your brand for a long time – even when you make a mistake.

Strategy #4: Service recovery programs

 Aside from delivering high-quality customer service, another important strategy that you need is a service recovery program. In a nutshell, it’s how you’d handle blunders on your end – faulty products, bad service, etc. – because these things happen, like it or not.

These mishaps are inevitable and would occur from time to time. What matters is how you recover from it and how well you can make the customer feel after the disappointment.

Strategy #5: After-sales support 

Your responsibility to customers doesn’t end once they pay and take home their items. What happens when they use your products/services is still your responsibility. And it’s essential that you’re able to make customers feel valued, even after they’ve completed the transaction.

Having excellent warranty policies, servicing and repairs, and replacement initiatives are some of the things you can do to make it worthwhile for your customers.

Strategy #6: Customer loyalty programs 

 75% of consumers say they favor companies that offer rewards. And as we’ve discussed in our previous blog post: having a customer loyalty program can become your company’s ticket to success!

Check out of FREE Guide on How to Create Effective Customer Loyalty Programs if you want to create one or refine your existing one.

Strategy #7: Build a relationship with customers Having a good relationship with your existing customers is one of the best things you can do to turn them into repeat customers and loyal customers. And if you’ll notice, most of the strategies we included above are geared towards building a better relationship with them.

Aside from those things, personalization is one of the most important things that make customers feel special. They want to feel like you see them as individuals, not a number on your balance sheet.

That’s why most customers appreciate customized/personalized offers from brands. Offers like birthday discounts, milestone discounts, personalized greetings, etc.

Personalization and customer loyalty management are some of the features of our system: ARLO. If you want to learn more about how it can help you create a personalized campaign for your customers, send us an email at:

Retention and Loyalty Pays Off

 If you apply these strategies correctly to your business, you can drastically reduce your customer churn rate and increase your company’s revenue and profitability. As illustrated in this article and The Value of Repeat Customers – keeping satisfaction high can make your business successful.

So, good luck!