Keep customers coming back for more. Repeat business is what it’s all about, and you get to that point when you retain your customers.
According to analytics company SumAll, for the most stable of businesses, 25% to 40% of total revenues comes from repeat business. Their data also shows that if a company can reach that 25% of repeat business within three years, they’re likely to keep growing through building momentum.
Getting to that 40% of repeat business brings an even bigger payoff. Over a 12-month period, SumAll found that businesses who secured a 40% level of repeat customers generated 47% more revenue than those companies that earned business again from 10% of its customers.
According to SumAll’s analysis, customers who buy once have a 27% chance of making a second purchase, and the odds keep growing that they’ll come back for more. The likelihood of that second purchase is even stronger when the initial purchase is higher. For contractors, this makes a lot of sense after the installation of a big-ticket item such as a new HVAC system.