Consumables
Goods that are quickly used up such that they must be repeatedly purchased by customers such as fast moving consumer goods. For example, a vegetable shop may sell to the same customers every day as vegetables have a limited shelf life and are ideally consumed immediately.Razor & Blades
A 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.Loyal Customers
A customer who is loyal to a brand, product or service. For example, a bicyclist who buys the same brand of bicycle every 2-3 years.Services
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.Subscriptions
Subscriptions 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
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.One Stop Shop
A business that offers 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.Two-sided Market
A market that connects buyers and sellers without directly selling anything. For example, an auction site where much of the transaction volume is driven by active buyers.Rebuy
A 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 | ||
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Definition | A customer who buys from a firm regularly. | |
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