Retail & Shop Owners

Stop Chasing New Customers and Make Your Old Ones Buy Again

Discover why loyal customers are worth 5x more than new ones and how to get Brisbane shoppers back in your door without constantly slashing your prices.

AI Summary

This post explains that repeat customers are the primary driver of profit for small shops, as they cost significantly less to reach than new leads. It highlights trends like moving from paper loyalty cards to digital recognition and using personalised SMS marketing to drive immediate sales. The advice focuses on simple data collection and human-centric follow-ups to stop 'customer indifference.'

I see it every day across Brisbane. A boutique owner in Paddington or a hardware store in Geebung spends thousands of dollars on Facebook ads to find 'new' people. They’re obsessed with fresh faces. But if you look at their bank statements, they’re bleeding money on marketing while their best assets—the people who have already bought from them—are being completely ignored.

Here is the cold, hard truth: it costs you about five to ten times more to find a brand-new customer than it does to get an old one to come back. If you’re a shop owner, your profit isn't in the first sale. The first sale usually just covers your rent, staff, and the cost of getting that person through the door. The real money—the money that pays for your holiday or your new ute—comes from the second, third, and fourth visit.

In this guide, we are going to look at the data behind why customers disappear and how you can use simple, no-nonsense tactics to bring them back. We’ll look at the trends hitting Brisbane retail right now and why 'loyalty' doesn't mean what it used to.

Most business owners think people stop coming because of price. They think, "Oh, the big shops are cheaper," or "They found a better deal online."

Our data shows that’s rarely the case. Only about 10-15% of customers leave because of price. The vast majority—nearly 70%—stop buying because of 'perceived indifference.' That’s a fancy way of saying they think you don’t care if they come back or not.

If you haven't spoken to a customer in three months, they don't feel hated; they feel forgotten. And in a world where everyone is fighting for attention, being forgotten is the same as being out of business. To fix this, you need to understand why people walk into your shop in the first place and what keeps that spark alive.

Remember those 'Buy 9 get 1 free' coffee cards? They’re dying. People lose them, they clutter up wallets, and frankly, they’re boring.

The trend moving into next year is Instant Recognition. Customers in 2024 and 2025 want to feel like a regular the moment they walk in, even if they’ve only been there twice.

If you are still using paper cards, you are losing data. When a customer uses a paper card, you know they bought a coffee, but you don't know who they are, where they live, or how to contact them when business is slow on a rainy Tuesday.

What to do instead: Move to a system where their phone number is their ID. It’s simple. People don't change their phone numbers. When they pay, ask: "Do you want to join our locals' list for a cheeky discount today?" Most say yes. Now, you have a way to reach them directly. This is how you get repeat customers without cutting prices long-term; you build a relationship, not just a transaction.

Stop sending 'Blasts.' I hate that word. A 'blast' is what you do to a clogged drain. When you send a generic email or SMS to 2,000 people saying "10% off everything," you are annoying 1,900 of them who don't need what you're selling right now.

The data shows that personalised messages—messages that actually mean something to the person receiving them—get 4 times more responses.

The Brisbane Example: We worked with a high-end pet supply shop in Ascot. Instead of sending a monthly newsletter about 'Pet Care,' they started tracking what people bought. If a customer bought puppy food, the shop sent a message three weeks later: "Hey, your little mate is probably getting through that bag of puppy food by now. We’ve set aside another bag for you behind the counter. See you soon!"

That isn't marketing. That’s being helpful. And it resulted in a 30% increase in repeat visits within two months.

You cannot compete with Amazon on price. You just can't. They have more robots and cheaper warehouses than you. If you try to beat the big online brands on price, you will go broke.

You win by offering what a screen can’t: a physical experience.

In retail, we see a massive trend toward 'Retail-tainment.' This doesn't mean you need a circus in your shop. It means your shop needs to be a place people want to spend time in. - Is there somewhere to sit? - Does it smell good? - Do your staff know the customers' names? - Do you offer a glass of water or a coffee?

I’ve seen a shoe shop in Fortitude Valley double their repeat customers just by adding a small 'waiting lounge' with local magazines and a water cooler. It made the husbands happy to wait, which meant the wives stayed longer and bought more. Simple.

Let’s talk numbers.

If the average customer spends $100 per visit and comes twice a year, they are worth $200. If you can get them to come four times a year, they are worth $400.

If you have 1,000 customers, that’s the difference between a $200,000 year and a $400,000 year.

How much does it cost to get them to come back? Usually, just the cost of an SMS or an email—maybe 10 cents. How much does it cost to find 1,000 new customers? At a conservative $20 per person in ad spend, that’s $20,000.

Which would you rather spend? 10 cents or $20?

If I hear one more 'expert' tell a small business owner they need 'brand awareness,' I’m going to lose it. Coca-Cola needs brand awareness. You need sales.

'Awareness' doesn't pay the power bill. You need a direct line to your customers.

- Buying 'Likes': A 'like' on Facebook is not a sale. I’ve seen businesses with 50,000 followers go bankrupt. - Expensive Glossy Magazines: Unless you’re selling $10 million mansions in Hamilton, local magazines are usually a black hole for your money. They look nice on the coffee table, but they rarely make the phone ring. - Generic SEO: Don't pay someone $2,000 a month to 'rank you for keywords' that don't result in people walking through your door.

If you want to see results in the next 30 to 60 days, here is exactly what I would do if I took over your shop tomorrow.

Every person who buys from you must be asked for their mobile number or email. Not 'forced'—asked.

The Script: "Are you on our locals' list? We send out a text once a month with a special deal just for our regulars."

Within 24 hours of their first purchase, send a simple text. "Hi [Name], thanks for coming into [Shop Name] yesterday! Hope you love the [Product]. See you again soon, [Your Name]."

No pitch. No discount. Just a human being saying thanks. This sets you apart from 99% of other businesses.

Set a reminder in your system. If a customer hasn't been back in 60 days, send them a 'We Miss You' offer.

The Offer: "Hey [Name], we haven't seen you at the shop for a while! Come in this week and mention this text for a free [Small Add-on] with your next purchase."

Notice I didn't say "20% off." Give them something physical or a value-add. It costs you less and feels more like a gift.

1. Hyper-Local is King: People are tired of big shopping centres. They want to support the guy down the road. Use this. Talk about Brisbane. Talk about your suburb. Be the 'local' choice. 2. SMS over Email: Email is getting crowded. People have 5,000 unread emails. They have 0 unread texts. Use SMS wisely (once a month max), and your open rates will hit 90%. 3. Subscription Models: Even if you sell clothes or hardware, think about how you can create a 'membership.' People love feeling like they belong to a club.

I’ll be honest: setting this up takes time. You have to train your staff to ask for numbers. You have to manage a basic database.

But once it’s running, it’s like having a tap. When business is slow, you turn the tap. You send a message to your best 500 customers, and by Saturday, 50 of them have walked in.

That is the difference between a business that survives and a business that thrives.

Don't try to do everything at once. This week, just focus on one thing: Start collecting mobile numbers.

Don't worry about what you'll send yet. Just get the numbers. Aim for 20 this week. Then 50 next week. Once you have a list of 200 people who have actually given you money before, you have a business asset more valuable than your shop fittings.

If you're struggling to get people through the door in the first place, or if your website is scaring people away, that's a different problem. But if you have people coming in once and never coming back, you are sitting on a gold mine. You just need to start digging.

Running a shop in Brisbane is tough right now. Costs are up, and people are tighter with their cash. But the businesses that focus on their 'regulars' are the ones who aren't worried. They know that no matter what happens with the economy, their loyal customers will keep the lights on.

At Local Marketing Group, we help Brisbane business owners stop guessing and start growing. We don't care about fancy awards or technical jargon; we care about making your phone ring and your till chime.

Need help setting up a system that actually brings people back? Let’s have a chat. No fluff, just results.

Contact Local Marketing Group today

Need Help With Your Retail & Shop Owners?

We help Brisbane businesses implement these strategies. Let's discuss your specific needs.

Get a Free Consultation