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


Rachel Lama
Customer Success Manager
July 9, 2019
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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. 

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 ... but we’ll explore this topic in a future post.

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