Definition of repeat purchase
The placing of order after order with the same supplier. Repeat business can be implemented by an agreement between the customer and supplier for purchase on a regular basis. It is often used where there are small numbers of customers, or high volumes per product and low product variety. There is market competition for the first order only, and customization is usually available for the initial purchase only. Sales and marketing have a diminished role once the business has been gained. The purchase and use of a product on more than one occasion by a particular customer.
Why repeat purchase is important?
Repeat purchases are important because advertising is very expensive. If a business came maintain enough customers through repeat purchases to remain profitable it will avoid huge costs that would have been incurred if further advertising had been necessary to attract new customers. Also a developing brand loyalty of customers not only brings the immediate cost of the product purchased to the business, but also the revenue from future sales made by the customer.
What ways do businesses encourage repeat purchase - (Sea Rock)?
Many businesses rely on repeat purchases or repeat business. This is when customers buy time and time again from the same firm. E.g. holiday-makers might use the same travel company each time they go on vacation. They are number of different ways to keep customers coming back:
Cheaper prices than at high street chemists will attract the price conscious customer. An easy to use website with fast ordering and quick payment for existing customers using a password system will attract those who want a convenient service. Effective customer service through fast deliveries.
Promotions aimed at existing customers. For example, customers who have not ordered within the past three months could be emailed with a money off voucher. Once businesses are up and running. Most businesses...