Posted in Marketing and Strategy Terms, Total Reads: 2281
Definition: Repeat Purchase
Repeat Purchase also known as Repurchase or Replacement Sale is when consumer purchases the same brand that replaces the previous purchase which is already consumer. Brand loyalty can be measured through repeat purchase of the brand.
If a customer is happy and satisfied with a particular hair shampoo and make repeat purchases of the same brand shampoo after consuming the previous one. It is said to be repeat purchase and consumer is said to be loyal consumer.
In order to increase repeat purchase there is need to pay more attention to customers than competition then only repeat purchases can be garnered. Either as salesperson or a corporate, repeat sales are necessary to make profits. Statistics have shown that it costs more to attract new customers than to retain existing customers because of high costs of advertising and promotions.
Market Researchers take repeat purchases into account to evaluate the business. Infact repeat purchases are the most profitable way to increase revenue of E-Commerce stores. Studies have shown that best online stores get almost 50% of the sales from returning customers.
Existing customers is the most easily approachable segment to target through marketing campaigns and promotions. It is easy to contact the existing customers because of the contact information and a connection that has been made due to earlier purchases. Those existing customers feel positive engagement with the brand and tend to respond more effectively to marketing campaigns and make repurchase decisions.