Repeat customers or Raving fans

For my business owners who are still focused on moving forward and growing in this difficult climate… I want to talk about the distinction between repeat customers and loyal customers.

Simon Sinek's book "Start with Why" makes an amazing distinction between the two.

He talks about the process of carrots and sticks.

The process business owners use to either deeply discount their services to offer incentive for buying  or creating fear in customers to incentivize buying.

For example deeply discounting your lodging so the person looking for a great deal chooses your facility or discounting your product so that the coupon shopper is incentivized to purchase your product = "The Carrot". 

The stick is the fear… It's the sales pitch that claims, if you don't do this or you don't buy that… You will be fat (for diet products) or be heavy or be alone or be stressed or age or on and on and on.

Both of these tactics create the repeat business & when used repeatedly creates a repeat customer who will continue to buy your products and services as long as you continue to offer those incentives.

On the other side: are the loyal customers. A loyal customer will seek out your product and service regardless of the incentive. They may even purchase your product regardless the price. They will reach around another product to grab yours. They may purchase your service over a different service because of your brand & your message. Building loyal customers makes your business recession proof.

When I look at the customers who supported us when we were in complete shutdown… It was our raving fans. Our loyal customers. Could they have bought wine at a cheaper plot price at the grocery store? Could they have stayed at a different location for a lot less? Of course! But after two decades in this business, we have created raving fans. Loyal customers who will support us when we need them.

So my question is, what kind of customers do you have? What kind of customers do you want?

We are so profoundly grateful for our raving fans and we keep in mind EVERYDAY that business are based on relationships and we strive to serve our people the best way we know how.

Tell me, who are your raving fans? How do you know?