Cost Savings
Most management textbooks will tell you that it costs somewhere in the region of seven-times as much to attract a new customer as to keep an existing one.
Risk Taking
Comfort with a company and trust in their expertise leads people to try new things. Billy Mays sold a product called Oxy Clean (a laundry detergent booster,) in infomercials. Oxy Clean worked, and more people started buying it. Oxy Clean was something new and untested when it came out, and people are generally very leery of new products. Billy Mays gained people's confidence as a spokesman, and the other products he sold like Sham-Wow's and a line of orange-based de-greasers sold very well because of it. People were willing to take a risk because they trusted Billy Mays.
Preferential Shopping
There are a lot of grocery stores in most towns, but most people tend to go to one or two of them over and over again for a reason: They know what is going to be there, where to find it, etc. Many people become extremely preferential after a few years, to the point that they will not flinch at adding 20 minutes to their driving time to shop in a store they know and like.
Evangelism
Customers who like your products and feel like you have treated them well will sell your product for you. They may not sell it hard, but they will recommend it to friends.
Customers who feel like they have been treated poorly by you will actively seek to tarnish your name. I spent many years recommending DELL computers to my friends and neighbors, but now I actively advise anybody who is thinking of buying a computer not to buy from them because of a horrible customer service experience.
Tailoring Your Wares
When you know a customer, you can make informed recommendations or ensure that you carry a certain item that you know they are going to want. When you do not know your customers because most people only visit a few times, you can only generalize. You can better serve a market segment if you know what they want.
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