High tourist traffic area (but not the highest area in the state). Check the thread about the perks of being a repeat.
("We have privileges!") We run between 25-30% repeats in any given year. We LOST a lot of the PO's repeat traffic for probably the exact reason our repeats come back. (Privileges) We weren't about to extend courtesies to people we didn't even know. And especially when we were getting, 'Oh, we've been coming there every year and we get a big discount.' Funny how I could never find those names anywhere. We still get that from guests whose last visit was in 1998. They are surprised they missed the interim innkeepers!
Now, as to losing the PO's repeat guests...we GAINED the repeat guests of other inns that changed hands and went thru the same thing we did...long-time guests who thought they could continue the same 'privileges' they had prior to the new ownership. So, they jumped ship and came here. New start for them, they didn't expect their old privileges and it works out.
Because there is a lot of B&B competition in this area (not as bad as some areas, tho), we do have to have a 'program' to keep the guests returning. They could just as easily go 2 steps in either direction and have a nice B&B experience. I don't advertise this program and even long-time repeats seem startled by the discount when they see it.
So, the perks...discounts, presents, privileges (define how you will- we let guests check in late without worrying about them) and, of course, our smiling faces.
We know we have former guests of other places because after 2-3 times here they tell us. "We used to stay at..." and then they tell us why they don't stay there anymore. THAT really helps.
Reasons guests move on (besides novelty)...new owners, building maintenance declines (this includes everything the guest touches or sees), breakfast fails to interest them, owner burnout (ie- you stop being charming and take them for granted), the area changes (ie- a 7-11 goes in across the street).