There are two kinds of customers in the business world. You have the repeat customers and the loyal customers. As entrepreneurs, you need to know the difference between the two. My definition of loyal and repeat customers are as follows:
- Repeat Customers – these are the customers who will buy off you when you have a sale or a promotion or any other advert happening or a campaign happening.
- Loyal Customers – these are the customers who will buy off you when you most need them.
Loyal customers are the ones who will stand firm by your side. They won’t be swayed to jump ship to other competitors because of the price. No matter how cheap the offer your loyal customers will always buy off you. They would never go to another company just to save a couple of dollars.
The Repeat customers, on the other hand, are unlike your loyal customers. These are the type of customers who have not built an emotional connection with your company. These are the people who don’t really spread the word about how great or awesome your company is or the products or services you are offering.
They can however, be swayed away with a coupon or a sale. In other words, these people lack loyalty. So what I am suggesting is this, don’t make a habit of running sales and promotions all the time because what happens is, all of your repeat customers won’t buy from you unless you’ve got a sale or a promotion going on. They’ll be waiting for Mother’s Day or Father’s Day or Christmas or New Year. These are the only times you’ll see them and the next time you do see them is when you’re having another sale. These people will never pay full price for your products.
Repeat customers are not the customers you need. Your business needs loyal customers because loyal customers will buy from you regardless if you are having a promotion or a sale. More often than not, the price doesn’t matter to them as long as they know the product comes from you.
My advice is for you to have a set price. If you want to run a sale or a promotion it’s fine but remember that you should not do it habitually because you will never be able to sell your products at full price. Give your customers a good product and give them a good experience so you won’t have to compete on the price. Lastly, make sure that you look after your loyal customers and prioritize them over your repeat customers.