# Building a Business You're Proud Of: A Key to Repeat Sales
Written on
Chapter 1: Understanding Customer Loyalty
In the world of entrepreneurship, the challenge of retaining customers can be daunting. One entrepreneur I collaborated with faced difficulties in convincing her clients to repurchase her specialized soap, designed for individuals with specific skin sensitivities. Despite having satisfied customers, she struggled to secure repeat purchases.
This is a common dilemma in the business landscape, as it's widely recognized that "your best customer is the one you've already sold to." Essentially, a repeat buyer is someone who understands the product, has a need for it, and is willing to spend money again. With these three critical factors, one would think reselling should be straightforward.
"I can't figure it out," she expressed during our coffee meeting. "Our customers appreciate the product, and they're clearly using it up. So why aren’t they coming back for more?"
"Are you certain they like it?" I inquired.
"As certain as we can be," she replied. "We conducted surveys and received positive feedback. Our online reviews are excellent, and there's nothing indicating dissatisfaction."
"And how do you follow up with them?" I asked. "How frequently do you send updates about your products, new offerings, or special promotions?"
"We make it a point not to overwhelm our customers with emails," she assured me. "We avoid sending unnecessary messages. I’d be surprised if customers weren’t buying due to us being too intrusive."
"Intrusive?" I queried. "You mean you’re not reaching out to past customers at least once a week? What’s the issue? Are you embarrassed about your product?"
"No," she insisted. "Not at all."
"Then that’s the core issue," I pointed out. "If a business is hesitant to reach out to previous customers, it signals a lack of confidence in their offerings. If you're proud of what you're selling, you should be eager to communicate regularly."
Just as I wrapped up my explanation, my phone chimed with a new email notification. I glanced at the screen and said, "You should take a cue from my daughter's daycare."
The "Best" Daycare in Town
My 4-year-old has been enrolled in her daycare since before her birth. The waiting list is so extensive that when a spot opened up shortly before my youngest was born, I had to secure it quickly. I began paying even though I couldn't utilize the service yet.
Why would I commit thousands for something I wouldn’t use right away?
Because my wife and I firmly believe this daycare is the best in the region.
Is it genuinely the best? Probably not. My daughter frequently claims she never wants to return. However, we appreciate the daycare because of the strong connection we feel, largely due to their consistent communication. I receive multiple notifications daily about various happenings at the daycare.
To clarify, I seldom read these messages; I often delete them without a second glance. Nonetheless, I still enjoy receiving updates because it reinforces my sense of connection to the service I’m investing in. This is a significant reason why I continue to pay.
Communicating with Customers Adds Value
I conveyed this idea to the entrepreneur across from me and showed her my phone. "Look at this message from my daughter's daycare," I said. "It's about a change in the menu. Any guesses?"
"Did they alter what your daughter is being served?" she asked, appearing indifferent.
"Probably!" I replied. "Truth be told, I've never actually read those menu emails because I don’t even know what she’s supposed to eat. Plus, I don’t particularly care if she swaps spaghetti for hummus. What matters to me is that I receive these updates."
"Doesn’t that bother you?" she asked. "They’re just cluttering your inbox with unimportant emails."
"On the contrary," I assured her. "I don’t read them, but getting those notifications makes me feel good about my decision. It reassures me that my child is well cared for, and I’m getting value for my money. You need to create a similar connection with your customers, or they won’t return."
"Am I really expected to email customers daily about soap?" she asked, skeptically.
"Not necessarily daily," I agreed. "Different products warrant different frequencies. But weekly? Absolutely!"
"Wouldn't that come off as spam?" she questioned.
"No," I responded. "Not if your customers genuinely enjoy your product. If they are satisfied, your emails will reinforce their positive feelings about their purchase. Each time you reach out—even if they don’t open the email—they see your brand name, recall their satisfaction, and are more likely to buy again."
It's Not Spam—It's Customer Care
"Oh my gosh," she exclaimed as the realization hit her. "I’ve been so oblivious."
"And why is that?" I asked, hoping she grasped my point.
"Because customers can’t repurchase my product while they’re using it!" she sighed. "How did I overlook that? They might love my soap, but if they run out in the shower, they can’t buy more then. They need reminders when they’re in a position to purchase."
"Exactly," I affirmed. "This is true for most products, not just those used in the shower. Marketing emails serve as a form of customer support, as consumers rarely think about buying while using a product. An email from your company serves as a gentle reminder to purchase when they’re able."
"So it’s not spam?" she confirmed, finally reassured she wasn’t annoying her customers. "Regularly reaching out to past customers isn’t a negative?"
"No," I reassured her. "Keeping your customers informed about your brand and products is vital. They should be happy to hear from you. If you’re worried that previous buyers won’t appreciate your communication, then the real issue isn’t the emails—it’s that you’re building a business you’re not proud of."
Want more insights into startups and entrepreneurship? Join my FREE mini-course today!
The first video titled "The 5th Level of Money Consciousness" discusses the critical steps you need to take to elevate your financial awareness and address potential barriers that may be hindering your success.
The second video, "Most Leaders Don't Even Know the Game They're In | Simon Sinek," provides insights into effective leadership and the importance of understanding the underlying dynamics in business.