Razor & BladesA business model whereby a durable good is sold that requires proprietary consumable goods. For example, a printer that is sold cheaply that requires regular supplies of relatively expensive ink. Services offer intangible value that takes no physical form. This tends to lend itself to repeat business as nothing physical builds up when you use a service. For example, a chain of hotels with a large pool of loyal customers who are attracted to a high level of customer service and rewards from a loyalty program.
SubscriptionsSubscriptions that automatically result in recurring revenue. For example, a software service that charges $14 per user per month such that a business customer with 1,000 users would be charged $14,000 a month until they cancel the subscription.Cross selling is the process of selling additional products and services to existing customers. For example, a mobile phone manufacturer who uses their platform to sell apps, media and content. significant product variety such that customers view it as a convenient source. For example, an ecommerce platform with millions of products that saves customers the time and effort of dealing with multiple shops with far less selection.
RebuyA business repurchase of a supply that has been purchased in the past. For example, a manufacturer of bicycles may rebuy components and parts several times a week to keep a production line running.
|Overview: Repeat Business|
A customer who buys from a firm regularly.