3 Reasons Why Turning Your Existing Customers Into Repeat Customers Is So Important for Your Business


Rachel Lama
Customer Success Manager
July 9, 2019
minutes to read

Get to the Point: 

  1. Repeat Business Is a Revenue Driver — Recent stats showed more than 50% of revenue for home service businesses comes from existing customers.
  2. Existing Customers Already Know and Trust You — With the most difficult part out of the way, all you have to do is keep up the world-class service.
  3. Repeat Customers Can Be Your Biggest Promoters — Plus, customers who know you and trust you are prime opportunities for service agreements.

Here’s one you’ve heard before: Repeat business is important. But I’m guessing you’ve never seen numbers that show you how important it is — until now. 

A recently released report from Customer Lobby sheds new light on this topic. Check out these numbers showing the percentage of quarter one revenue that home services companies found came from repeat business:

  • Heating and cooling: 64% 
  • Plumbing: 64% 
  • Electrical: 53%

Think about it. More than half of these companies’ first quarter revenue came from existing customers who were satisfied enough to once again spend their hard-earned dollars. 

So focusing on existing customers and encouraging their repeat business is paying off for many home service business owners. Here are three reasons why this focus makes so much sense for you, too.

Your Existing Customers Already Trust You

One of the hardest things to earn from a customer is trust. Really, the only sure-fire way to do so is by delivering a world-class experience. We’ve written about some ways to earn that trust in past blog posts — and we’ll certainly be discussing that more in future posts. 

As long as you’ve successfully delivered a world-class experience, your existing customers know you and your business and trust that you are the right choice for future work. With the most difficult part out of the way, all you have to do is keep up the great service. 

Now, if you are not delivering customer satisfaction, you have some more work to do. This is when a field service management software solution like Pointman can help. With feature-packed software, success coaches offering personalized guidance, a team of analysts studying your data and a community of peers in your corner, Pointman is designed to grow your business in the right ways.

Repeat Customers Are Likely to Spend More Than New Customers

So obviously repeat customers trust you more than first-timers. They also, according to About Money's Laura Lake, spend an average of 33% more than new customers.

This connects nicely to service agreements. Customers who know you and trust you are prime opportunities for selling agreements. Now, you’ll be in their homes at least once per year. (If you have not explored service agreements yet, you are missing a huge opportunity for repeat business — check out our recent blog on why agreements can have a major impact for you.)

When Satisfied, Repeat Customers Can Be Your Biggest Promoters

A recent statistic showed that 71% of customers recommend a service because they received a “great experience.” These are folks who you can ask for online reviews and, of course, referrals.

It all comes back to satisfying your customers. So in reality, focusing on your existing customers is also going to bring you new customers. It’s a simple way to bring in more dollars and build your reputation. 

There are a number of other reasons this focus makes sense — attracting new customers requires more marketing dollars, for one. And while we know that new customers are also important, it’s pretty clear that repeat business from existing customers is a revenue driver.

Next, you need to work on earning that repeat business. We’ll explore this topic in a future post. In the meantime, check out our Success Coaches page for more info on how these industry experts can work with you to make your team stronger.

Behavior between jobs is another matter. It’s not uncommon for a tech to stop and grab food on the way to a job, or maybe get gas. However, business owners need to keep a close eye on how long these stops stretch. Are we talking five minutes, or 30? If you spot your truck idling at a gas station for half an hour, you’re losing money.

If you spot your truck idling at a gas station for half an hour, you’re losing money.

There is a greater issue here, as well. You set expectations with customers that a tech is going to arrive at a certain time. A tech who spends too long eating or pumping gas may also be arriving late to jobs. We all know the importance of customer expectations — as well as the importance of customer reviews …

So make clear to your techs that you are watching. Just as you set expectations with customers, you also must set expectations with your employees. When you’re using a field service management software like Pointman with advanced timecard management and time-tracking capabilities, it’s easy — every employee gets into the routine of setting their status (dispatched, starting a job, meal break, etc.) whenever it changes throughout the day. As long as you enforce using it consistently, your techs will know they’re always accountable for their activities and whereabouts.

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