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5 Reasons Why Repeat Customers Are More Valuable

hand holding boomerang

Whether you are a small business owner or the CEO of an international organisation, there are a whole host of reasons why repeat customers are more valuable to your business than single, one-off transactions.

It stands to reason that existing customers who know and trust your brand are going to be more of an asset to your long-term success than “potential customers” who haven’t yet committed to a purchase.

While every customer is a first-time customer at some point, it’s the ones that develop an emotional connection to your brand that will stick around. These are the people who will actively contribute to the ongoing prosperity of your business – and in the points below, you’ll find the stats that prove it!

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1. Existing Customers Spend More

valuable repeat customer making transaction at POS

The first and foremost reason why repeat customers are more valuable is that, literally, they provide your business with more value! Existing customers generate more profits, both in the short and long term.

There are three main reasons for this:

  • Loyal customers visit more frequently
  • They spend significantly more per transaction
  • They hold a higher lifetime value, regularly shopping with your brand for years or even decades

When you consider these qualities, it’s no surprise that 80% of your future profitswill come from just 20% of your existing customers.

2. Higher Level of Trust = Easier Sell

shop assistant helping valuable repeat customer choose clothes

Naturally, repeat customers trust your business and its products or services. With every transaction, this trust is strengthened, along with the customer’s emotional connection to your brand.

This trust means thatexisting customers are 50% more likely to try new products, compared to new customers.


They are also more willing to act as “guinea pigs” for your marketing campaigns and trial products, and will generally give more honest feedback, as they have a vested interest in the future success of your business.

And finally, existing customers are far more likely to be forgiving of mistakes, such as wrong orders or some other form of miscommunication.

Whereas a new customer might take their business elsewhere, repeat customers will remain loyal to the brand. When debating why repeat customers are more valuable, this one is a biggie!

3. Retaining Existing Customers is Significantly Cheaper than Acquiring New Ones

playback repeat icon

Five times cheaper, in fact!

Not only does customer acquisition cost five times more than customer retention, but the sameHarvard Business Review study also revealed that a mere 2% increase in customer retention is equal to cutting costs by 10%.

Let’s face it – customer acquisition is expensive. If you calculate the total amount your business spends on sales and marketing, and divide it by the number of new customers acquired, you’ll determine the exact return on investment. A word of warning, though… you might not like the figure!

The reason that the overheads are much lower with customer retention, is the “trust” factor mentioned in the previous point.

Existing customers already have it on the best authority (their own!) that your business offers a quality product or service… no kind of advertising can stand up to a customer’s own stamp of approval.

4. Repeat Customers Advocate Your Brand

valuable repeat customer advocating brand to others

According to Bain & Company, repeat customers are responsible for 50% more referrals than one-time buyers.

Whether it’s a word-of-mouth referral among peers or a positive online review that leads to a new sale from a first-time customer, brand advocacy is an invaluable asset to any brand’s marketing strategy.

Many businesses incentivise customer referrals, product reviews and user-generated content through loyalty points, which can be redeemed for discounts and other rewards. In turn, this boosts brand advocacy and expands brand awareness.

On a side note, satisfied customers tell an average of nine people about their positive customer service experience, whereas dissatisfied customers will tell approximately 22 people about their negative experience… all the more reason to convert your existing customers into loyal brand ambassadors!

5. Elevated Digital Engagement, Which Reaches a Wider Audience

digital engagement from valuable repeat customers

As an extension of the previous point, existing customers are far more likely to follow your brand on social media, participate in competitions and other digital marketing campaigns, and share your content on their own pages.

By embracingthe power of good social media loyalty marketing, you can use your existing customers to reach a much wider audience, and attain new customers as a result.

All this, without the need for expensive TV and radio ads, billboards and other costly traditional advertising methods!

Adigital loyalty app is the ideal means for engaging existing customers and motivating an increased digital interaction with your brand. From gamified functions likeScratch & Win, to personalised marketing directly to the customer’s mobile device, digital loyalty apps are an unrivalled customer retention tool.

Case in Point: Kabuki Hair

hairstylist and nail technician pampering valuable repeat customer in beauty salon

Australian salon Kabuki Hair has been providing the people of Adelaide with exceptional hairstyling and beauty services since 2001. Not only does the team at Kabuki Hair understand why repeat customers are more valuable, but they were willing to invest in a digital loyalty program in order to retain more customers.

Since embracing Stamp Me’s award-winning digital loyalty platform in 2016, Kabuki Hair has seen a surge in customer retention and brand loyalty.

The simple digital punch card system allows Kabuki Hair to reward loyal customers, and achieve the following:

  • Incentivise repeat transactions
  • Strengthen the emotional connection between the salon and its customers
  • Ensure the Kabuki Hair brand is front-of-mind for customers’ future hair and beauty needs
  • Accumulate customer data for valuable marketing insights
  • Regular communication with loyalty program members via the salon’s existing email marketing platform

Ready to discuss your customer retention and brand loyalty goals? Get in touch with a friendly member of the Stamp Me Loyalty Solutions team today, and we’ll be happy to help your business retain more customers and boost brand loyalty.

Stamp Me provides loyalty solutions to businesses large and small, from our own Customer Loyalty App to fully customised loyalty and rewards programs for enterprises and brands.

Contact us if you would like to discuss a loyalty or rewards solution for your business or brand.

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