January/February
2025
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BUSINESS INSIGHT
The Value of Returning Customers
In the retail shoe business, the importance of a returning customer cannot be overstated. Beyond the obvious benefit of repeat sales, returning customers often serve as the lifeblood of a store’s profitability and reputation.

The Value of a Returning Retail Customer

Studies consistently show that acquiring a new customer can cost five times more than retaining an existing one. For shoe retailers, this statistic is especially significant, given the competitive landscape and the growing importance of fostering brand loyalty.

Returning customers are more likely to make larger purchases, trust your recommendations, and refer friends and family to your store. In many cases, they become your best advocates, promoting your business through word-of-mouth and online reviews. Their loyalty also provides a steady revenue stream, which is critical for maintaining cash flow and sustaining long-term growth.

Moreover, returning customers help stabilize inventory management. A predictable customer base means better forecasting and smarter purchasing decisions. For shoe stores, this can reduce overstocking or understocking issues, minimizing markdowns and lost sales opportunities. With a loyal clientele, retailers can also experiment with introducing new brands or styles, knowing they have a dependable group of shoppers willing to explore their offerings.

The key to ensuring customers return lies in providing exceptional service, curated product selections, and a personalized shopping experience. A returning customer often indicates that your store has met, if not exceeded, their expectations. For a shoe retailer, this means not only offering the right size and style but also ensuring that every aspect of the shopping experience—from the ambiance to the fitting process—is memorable and positive.

Investing in loyalty programs and customer relationship management (CRM) systems can also help maintain strong connections. By rewarding repeat visits with discounts, exclusive offers, or invitations to special events, you demonstrate that you value their business. Loyalty programs can also collect valuable data about customer preferences, enabling retailers to further tailor their offerings and promotions. Ultimately, a satisfied returning customer is more than just a sale—they are a cornerstone of your store’s success.

Retailers should also prioritize follow-up communications to keep customers engaged. Sending thank-you notes, providing updates on new arrivals, or sharing helpful shoe care tips can strengthen the relationship. Customers who feel genuinely cared for are far more likely to return and become long-term patrons.

The Value of a Returning Wholesale Customer

While retail stores rely on individual customers, wholesale vendors depend on their retailer partners for ongoing business. A returning wholesale customer—a retailer who consistently chooses to carry your brand—is an invaluable asset. Their loyalty reflects the strength of your brand, the quality of your products, and the effectiveness of your business relationships.

Wholesale customers provide predictable revenue streams, allowing vendors to plan production, manage inventory, and forecast sales more accurately. When a retailer repeatedly orders your products, it demonstrates confidence in your brand’s ability to sell well in their store. This strengthens your position in the market and often leads to increased visibility among other potential retail partners.

The relationship between a vendor and a retailer is built on mutual trust and collaboration. Vendors who invest in supporting their wholesale customers—through timely deliveries, marketing materials, and training—are more likely to secure their continued patronage. For example, offering exclusive product lines, promotional discounts, or favorable payment terms can set your brand apart from competitors and deepen retailer loyalty.

A returning wholesale customer also plays a role in brand advocacy. Retailers who believe in your products and brand story are more likely to promote them effectively to end consumers, ensuring a strong presence in the marketplace. Their feedback on product trends and consumer preferences can also help vendors refine their offerings, creating a mutually beneficial partnership.

Additionally, returning wholesale customers help vendors navigate market fluctuations. Stable partnerships can mitigate risks during economic downturns or shifts in consumer behavior. Vendors can also rely on their most loyal wholesale customers for insights into regional trends or emerging opportunities, enabling them to adapt quickly and maintain relevance.

Building and maintaining these relationships requires consistent effort. Vendors should actively seek feedback from their wholesale partners, addressing concerns promptly and transparently. Regular communication, whether through phone calls, in-person meetings, or trade show interactions, reinforces the sense of partnership. Vendors who demonstrate a genuine commitment to their retailers’ success are far more likely to retain them as long-term customers.

A strong and mutually beneficial relationship between a sales representative and a retailer is essential for maintaining business continuity and fostering goodwill. The sales rep serves as the critical link between the vendor and the retailer, providing personalized service, addressing concerns, and ensuring that the retailer’s unique needs are met. This relationship goes beyond transactions; it builds trust and collaboration, which are key to long-term success. When a rep invests time in understanding a retailer’s business, from their customer demographics to their seasonal inventory requirements, it demonstrates commitment and reliability. For vendors, this strong connection often translates into increased retailer loyalty, consistent reorders, and valuable insights into market trends. For retailers, having a trusted rep ensures smoother operations, access to exclusive opportunities, and a sense of partnership that contributes to their overall success.

Discounting on direct-to-consumer (DTC) websites can severely undermine the goodwill that vendors have built with their retail partners over preceding seasons. When vendors offer significant discounts online, it creates an uneven playing field, often forcing retailers to compete against the very brands they support in their stores. This practice can erode trust and strain long-term relationships, as retailers may feel devalued and undermined. Additionally, aggressive DTC discounting can damage the perceived value of the brand, making it harder for retailers to justify premium pricing to their customers. Over time, these actions risk alienating loyal retail partners, jeopardizing the vendor’s ability to maintain a consistent presence in brick-and-mortar stores and diminishing the collaborative efforts that have contributed to shared success in the past.

In essence, the value of a returning wholesale customer is much like that of a retail customer—multiplied across the scale of their business. Their loyalty ensures stability, growth, and an opportunity to build long-term success. The stronger the partnership, the better positioned both the vendor and retailer are to thrive in an ever-changing market.

Alan Miklofsky, is a semi-retired self-described “Professional Shoe Dog” with a distinguished career in the footwear industry. Over the decades, he successfully ran an award-winning shoe business while dedicating 29 years to the National Shoe Retailers Association (NSRA) Board of Directors, including serving as Chairperson from 2009 to 2011. Today, Alan channels his expertise into creating content on issues vital to independent shoe retailers and offering consulting services with a focus on financial oversight. You can learn more about Alan Miklofsky online at: https://sites.google.com/view/alanmiklofskypersonalwebsite/alan-miklofsky https://www.linkedin.com/in/alanmiklofsky/

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