Repeat Customers: Everything You Ever Wanted to Know

How many businesses have made a cult-like following out of their repeat customers?

Let me give you some examples:


Tesla cars are unspeakably innovative, revolutionary, and reliable. Sure the technology could use a little more refinement, but the company is ahead of the curve. Ask repeat customers why they always come back, and they’ll give you a long list of reasons.

Here’s a second one, Apple.

The iPhones may have once been innovation’s golden standard, but recently, Androids have offered users more flexibility. Except for the iPhone 14 Pro models, Apple’s recent releases could have been more groundbreakingly stellar. However, people adore the fruit company’s smartphone like it’s gold and worship Steve Jobs like a God. They do it for one simple reason: it’s Apple, which means you’re in.

Repeat customers return for your products and services but stay for the experience. You create a solid client base by building your company around unrivaled expertise. These buyers

evolve to be returning customers that give your business repeat sales. 

Repeat customers return for your products and services but stay for the experience. As a result, business skyrockets when you get new customers while maintaining your previous ones.

Here’s the thing: your business is neither Tesla nor Apple, but you can build an army of loyal repeat customers. Why and how? You’ll learn as you read this article.

What Makes a Repeat CustomerWhat Makes a Repeat Customer?

A repeat customer is a person who regularly purchases goods or services from a particular business. Typically, repeat customers spend more than regular buyers. That’s why companies tend to value them for a good reason. The more customers get comfortable buying from a business, the more they loosen up their budget and spend higher. For that reason, companies need to engage them to encourage repeat purchases over time consistently.

It’s essential to make a quick distinction between repeat customers and returning customers or buyers:

  • Returning customers — People who purchased once from your business before and decided to return to buy from you once more.
  • Repeat customers — People who regularly buy from your business and are considered loyal customers.

Buying once or twice from a business doesn’t make people repeat customers. If we want to be technical, there are various ways to classify repeat customers, like:

  • Frequency of purchase
  • Recency of purchase
  • Average transaction value — cost spent on your business
  • Customer lifetime value (CLV) — the amount spent throughout their relationship with the business
  • Net Promoter Score (NPS) — customer loyalty and satisfaction measurement tool

To make things easier to remember, repeat customers are consistent buyers. Not once or twice, but at least three times.

Consider this. If a buyer goes to an HVAC business for ductwork, unit installation, repairs and club membership, they are repeat customers. This is because repeat customers see the value in your services and want to continue to work with you. Otherwise, they would have stopped after one or two encounters with your business.

Your HVAC customer service is the best there is. Your business may offer high-quality products and services that meet the demands of your customers. Whatever it is, you did something right that made customers stick it out for the long haul.

Do you want repeat customers who consistently choose you amidst the Sea of Sameness? We can help. Wizard of Sales® is an expert business strategist and consultant that’s been the partner of many residential home service contractors. We help businesses perfect their company culture, customer journey, and touchpoints, leading to consistent growth and repeat customers. Book a call.

Knowing Customer’s Numbers

At the core of any successful business lies a solid customer base. Repeat customers are an essential foundation of that base. Whether you run an HVAC company, a plumbing business, or another service-based enterprise, repeat customers are critical to your success.

Let me tell you why knowing your customers’ numbers is important using some repeat customers statistics (obtained from HubSpot):

  • You are 60-70 percent more likely to sell to existing customers than new buyers (5-20 percent only).
  • Repeat customers spend an average of 31 percent more on your business than regular buyers.
  • Approximately three out of four people are repeat customers because of the quality of products and services.
  • It’s 50 percent easier to upsell your products to repeat customers vs. new customers.
  • Almost new 90 percent of companies believe that customer service plays a huge role in customer repeatability.

These are a few basic statistics on why you should prioritize producing repeat customers. Plus, they require even less effort on your part to retain them. So long as you have repeat customers, you boost your bottom line and grow your business over time.

What Do Repeat Customers Tell Business Owners?

Okay, so we’ve learned why keeping the number of your repeat customers in check is essential. But what exactly does having repeat customers say about your business? Let’s explore below:

Having repeat customers is a sign that your business provides quality solutions that meet your customers’ needs. That says a lot about how much effort you’re putting in. For starters, different customers mean varying pleasure points, pain points and underlying felt needs. Having a solid client base demonstrates that you consider all of these. 

Moreover, repeat customers show that you consistently deliver on your promises. For many businesses, this is where they fall short. However, there’s a quick fix and workaround to deliver, if not exceed, your promises consistently. Here’s the secret: under-promise but over-deliver.

Finally, repeat customers show that you built strong relationships with your target audience. In today’s competitive landscape, it’s not enough to simply deliver a product or service. Relationships matter because doing business is better with friends than with faceless corporations.

In the end, repeat customers can boost your bottom line. They spend more than new customers, which helps drive consistent long-term growth for your business.

Why is a Healthier Relationship With Customers ImportantWhy is a Healthier Relationship With Customers Important?

When running a successful business, having repeat customers is essential. From increasing revenue to expanding your reach, repeat customers play a crucial role.

Many factors go into building and maintaining repeat customers. This includes:

  • Establishing a healthy relationship with your buyers through consistent messaging and promotions
  • Maintaining active channels for synchronized communication
  • Providing high-quality products or services
  • Delivering exceptional customer service

All of these are essential steps in maintaining a healthy relationship. While we have brushed on why repeat customers are crucial, we’ll dive deeper into the subject. Below, we’ll share a few points on why maintaining a healthy relationship with clients is vital for businesses.

Finding new customers is more expensive than getting repeat customers

One reason you should focus on molding repeat customers is that it is much cheaper than acquisition. The National Law Review states that it’s 5x more expensive to find new buyers than maintain existing ones. After all, that means investing time, money, and resources to guide prospects down your marketing funnel.

The best action is to attack from both angles: acquire new ones while taking care of your existing customers.

They generate consistent revenue

Repeat customers are a key driver of revenue for businesses. Bain and Co say that a five percent increase in customer retention boosts profitability by 75 percent. That means investing in repeat customers ensures the growth and thriving of your business into the future. Whether through repeat purchases or recurring payments, repeat customers are a valuable asset to any company.

Are more likely to believe in your goods and services

When people have a prior positive experience with your business, they are assured of the quality and experience you deliver. That gives them more peace and motivation to buy from your company. As explained by Bain and Co, repeat customers buy an average of 67 percent more after 31-36 months. That’s because repeat customers are more trusting and familiar with your company, resulting in an increased willingness to spend. 

A reliable source of word-of-mouth advertising

We have always believed in broad-target advertising because you want as many people to see your ads. Every person is an influencer in their Realm of Association. When you positively impact a single client, they can spread your good news to their peers, increasing your customer base.

Nielsen says 92 percent of consumers trust word-of-mouth marketing and recommendations from peers. In that case, a bad service will also create a negative ripple effect in the world on the street. Always make sure to deliver on all your promises because if this could happen, the reverse could too.

It raises lifetime value

Every customer has a lifetime value or the amount they spend throughout their relationship with your business. The more repeat customers you have translates to a higher lifetime value which impacts your bottom line. Plus, since customer retention is more economical than acquisition, your profit per customer also grows.

It can be used for testing goods and services

It can be used for testing goods and services

In a way, repeat customers are also early adopters. They know your business better and are assured that you deliver outstanding results. As a result, you can ask for support in determining the viability and sensibility of your new offers.

If there’s one thing true among customers, they like to be heard. They feel part of something bigger when their opinions are valued and used to improve the company. That’s how you engrave your brand in their hearts and minds.

In the end, repeat customers are the most important people in keeping you in business. You should value them as much, if not more, than new customers. With repeat customers by your side, growing your business is confidently within reach. This is because you have already built a solid foundation of loyal fans who will spread the gospel of your business.

Want repeat customers in your residential home service business? You can when you streamline your company culture, communication channels, sales journey and customer service. Wizard of Sales® can help you perfect all those touchpoints. Book a call.