StoreWave

How to turn a first sale into a regular customer

StoreWave 5 min read

Every shop owner knows the regulars by face. You know what they buy, roughly when they come in, and whether they want conversation or want to be left alone. That knowledge is the whole advantage a small shop has over a large one, and almost none of it is written down anywhere.

Which means it walks out of the door when you are not on the floor, and it disappears entirely when you take a week off.

Turning first-time buyers into regulars is not a marketing project. It is mostly the unglamorous work of recording who bought what, and then doing something small and consistent with that record.

Why the second sale is worth more than the first

The first sale to a new customer is the expensive one. Whatever it cost you to get them through the door, that cost is spent on a single transaction, and it does not repeat.

Every sale after that is close to free. They already know where you are, what you carry, and whether they like you. There is no acquisition cost and there is usually no discount involved.

That is the whole argument for caring about retention, and it holds in a shop of any size. A customer who comes in monthly for two years is worth many times one who came in once and spent double.

Start with a name against a sale

You cannot bring anyone back if you do not know who they were.

Attaching a customer record to a sale takes about four seconds at the counter. It needs a name and one way to reach them, and it does not need to be every customer or even most of them. Start with the ones who are obviously going to come back: anyone who bought something substantial, anyone who asked a question that suggests a next purchase, anyone who mentioned they were nearby.

Ask plainly and give a reason. “Shall I put this on your name, so we can look it up if there is a problem?” works far better than an unexplained request for an email address, because it is a benefit rather than a form.

Once the record exists, so does the history. Six months later, when someone asks which one they bought last time, the answer takes five seconds instead of a shrug.

Loyalty points, done in a way that survives

Points schemes fail in small shops for predictable reasons. They are too complicated to explain in one sentence, or too stingy to be worth chasing, or so generous the maths never worked in the first place.

A workable scheme has three properties.

  • One sentence explains it. “Spend 1,000 and you get a point, ten points is 500 off.” If it takes a leaflet, it will not be used.
  • The cost is a known percentage. Work out what the scheme gives back as a share of the spend it took to earn, and treat that as a marketing spend you have chosen. Somewhere between 1 and 5 percent is normal. If you cannot state the number, you have not designed a scheme, you have made an open-ended promise.
  • It rewards what you actually want. Most shops want frequency, so reward visits and spend rather than one large purchase.

Be careful with rounding, because it is where these schemes leak or annoy. If a customer spends 1,500 against a 1,000 threshold, a scheme that rounds down to one point is quietly telling them the last 500 did not count. Proportional earning is fairer and easier to defend at the counter.

Store credit is a better refund than cash

Store credit belongs in this conversation as much as in a returns policy, because it is one of the few things that turns an unhappy moment into a future visit.

Someone returning an item is in your shop, talking to you, with money owed to them. If that money goes back to their card, the relationship ends there. If it sits as credit on their name, they are coming back, and in practice they usually spend more than the credit when they do.

Offer it as the first option, never as the only one, and make sure the balance is visible to whoever is at the counter next time rather than living on a note in a drawer.

Three habits worth more than any scheme

None of these need software, and all of them work better with a record behind them.

Follow up on the substantial purchases. A short message a week after someone spends real money, asking whether it worked out, is rare enough to be memorable and cheap enough to do every time.

Notice absence. A regular who has not been in for three months has usually not moved away, they have drifted. One message, no offer attached, brings a surprising share of them back.

Know what they bought. Being able to say “you had the medium last time, do you want the same again” is the single most useful sentence in retail, and it needs nothing more than the record you already have.

What the shop keeps hold of

The point of all this is that the knowledge stops being yours alone and becomes the shop’s. The part timer on a Saturday can greet someone by name, look up what they bought, see the credit sitting on their account, and handle the whole thing exactly the way you would have.

StoreWave keeps a customer record with their purchase history, a points balance and a store credit balance, and both balances have a full movement history behind them, so you can see how a figure got to where it is rather than trusting it. Points are earned proportionally rather than rounded down, because a customer who spends half again as much as the threshold should get half a point more, not nothing.

Keep reading

Ready when you are

Set up your shop today. It is free, and you do not need a card.