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.

Look at Pricing

The start of the year is a great time to look at pricing. Usually, you have an idea of how your company fared the year prior, and you want to ensure you will continue to grow in the months to come. Many of us make New Year’s resolutions with respect to spending or saving in our personal lives, and it’s no different for business owners. Making sure your pricing is in line with where it should be is one of the strongest ways to start the year the right way.

Part of looking at your price book is finding where the issues are, and that can take time. An HVAC company in January is going to be very busy, so it’s a difficult time for a close look. However, a plumbing company might not be as busy. Whenever you tackle this job, your best bet is to look at what your labor rates are. Start there, and let it trickle down across the board. Ask yourself, “Are my labor rates helping my business stay profitable?”

Remember, there are many different services out there and many different groups or communities that you can engage. Never hesitate to say, “Hey, I’m a business owner in Florida. What should my labor rates be?” You can build your price from there. There are also some great billable hour calculators available.

Set Goals

There is no better time of year for looking inward than January. Set your personal goals and company goals for the following 12 months. If you can break those down into departmental goals, even better! Perhaps that means a CSR booking closing rates a little better, or a truck doing 250,000 a year rather than 200,000.

Many companies have found that using an Objectives and Key Results (OKRs) goal-setting system pays off. Looking for a guidebook when it comes to OKRs? Check out Measure What Matters: How Google, Bono, and the Gates Foundation Rock the World with OKRs by John Doerr. 

One key question is the best way to handle setting goals: Is it smarter for business owners to handle this solo, together with staff, or to delegate completely? 

The best approach is to set goals at the department level. As an owner, you need to take the time to understand what the goals are in each department, and make sure they are in line with your goals for the company. No one likes to set unattainable goals for themselves, so make sure you push your departments to set goals that are lofty, rather than simple ones to feel good about hitting. Entrust your staff to aim higher, and watch how they respond.

Pass Along these Points

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