Sunday, March 27, 2016

How companies get to do repeat business?

I work for an IT services company that makes over 90% of its revenue from repeat business.   For the last few days or so, I was thinking about the reasons how certain companies get to maintain long-lasting customer relationship and generate repeat business.  I wanted to delve a little deeper into this topic.

To start with, let us analyze this from a customer point of view.  Why do we regularly shop at one particular retail store over others?  The potential answers I could think of were:
1. Good quality products
2. High availability
3. Low prices
4. Good customer service
5. Ease of shopping
6. Location proximity

We can see that there are a number of factors that can contribute in enabling repeat business. Now, the important question is how companies are able to consistently do this.  It is difficult to do well in all of the above points.  Is it not?

After a little deeper thought, I could classify the above points into 3 focus buckets - i) Product differentiation, ii) Operational Excellence, and iii) Customer Experience.   So, successful companies, that do repeat business, will need to have hardcore focus on at least one of these 3 points and do their possible best on the remaining two.  Let us look at examples of few companies and confirm whether this analysis is true or not.

The first company that came to my mind is Apple which is known for its product differentiation. Apple products are also relatively expensive when compared to similar products from other companies.  Though, many customers are willing to pay a premium for the experience these products deliver.

The next company is Walmart.  I think Walmart's core strength is operational excellence.  They are able to ensure high availability of various products at lower prices with close location proximity to customers.  Customers of Walmart may not be too cost conscious as most of them have good confidence on the low price commitment from Walmart.

One company that delivers great customer experience is Amazon.  They are known for making shopping experience easy and pleasant.  Customer care and service is of primary importance.  I have seen the maximum number of shopping innovations around product pricing, shipping options, buying modes, shopping cart and loyalty at Amazon.


The 3 focus points - product differentiation, operational excellence and customer experience applies to services companies as well.  We can see that there are many other companies that are successful in delivering repeat business by leveraging these 3 focus points appropriately.      

I invite you to share your thoughts and comments on the above analysis.



246 comments:

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Aruna Sen said...

This insightful analysis underscores the essential elements driving repeat business - product differentiation, operational excellence, and exceptional customer experience. Companies that excel in these areas thrive and foster lasting customer relationships.
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Aruna Sen said...


I appreciate your deep understanding of the factors that contribute to repeat business. You have provided excellent examples of companies that excel in each of the three focus areas: product differentiation, operational excellence, and customer experience. Your analysis is insightful and thought-provoking. Thank you for sharing your insights!
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Pratyaksha said...

Hey! your blog on companies can build repeat business by consistently delivering excellent products or services, providing top-notch customer service, and fostering strong relationships with their customers.
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Pratyaksha said...

Your commitment to sharing this knowledge is greatly appreciated, Thank you for shedding light on the key principles of repeat business and its significance in the corporate world!
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This blog sheds light on the art of securing repeat business, a topic every company should master.
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The blog post effectively highlights the reason How companies get to do repeat business
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"Creating personalized experiences for customers and consistently delivering quality products/services are key factors in building customer loyalty. I've noticed that companies embracing these strategies tend to excel in cultivating long-term relationships. What other approaches do you think contribute to sustained customer engagement?"
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Thank you for providing in depth knowledge and insightful tutorial on How companies get to do repeat business.
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This insightful analysis breaks down the key factors driving repeat business: product differentiation, operational excellence, and exceptional customer experience. Great read!


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Insightful analysis on the keys to repeat business. Well-structured and thought-provoking. Thanks for sharing this perspective

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Gogou Misao said...

Walmart and Amazon are really the best examples of customer retention. Great article and thanks for the share.

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jecksmith said...

Building repeat business is critical for any company's long-term success. Understanding your customers' needs and preferences allows you to make them feel understood. Loyalty programs and incentives are effective tools as well. keep posting.
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"Your insightful blog on how companies secure repeat business is a strategic compass for businesses navigating customer relationships. The depth of your analysis, exploring the nuances of customer loyalty, provides a valuable roadmap for companies aiming for long-term success. Thanks for shedding light on the intricacies of building lasting connections, ensuring businesses thrive through the art of fostering customer loyalty."
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Sakshi Shah said...

Great analysis! Your breakdown of repeat business into Product Differentiation, Operational Excellence, and Customer Experience is spot-on. It’s insightful how you connected these factors with real-world examples like Apple, Walmart, and Amazon. I particularly appreciate how you highlighted the challenge of excelling in all three areas and the need for companies to focus on at least one. This perspective is valuable and relevant to understanding what drives customer loyalty. Thanks for sharing this thought-provoking post!

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Thank you for sharing your thoughts! I always look forward to your posts because they consistently offer something new and interesting

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This article offers a well-structured analysis of how companies generate repeat business by focusing on three key areas: product differentiation, operational excellence, and customer experience. By using examples like Apple, Walmart, and Amazon, the writer illustrates how different companies excel in one area while maintaining high standards in the others. It's an insightful take on how businesses can build long-term customer relationships and consistently deliver value. The invitation for readers to share their thoughts adds an engaging touch.

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This article provides a clear and insightful breakdown of how companies generate repeat business by focusing on product differentiation, operational excellence, and customer experience. The examples of Apple, Walmart, and Amazon effectively illustrate how these strategies are applied in practice. The categorization of customer needs into three focus areas is a smart way to analyze why certain businesses succeed in building long-term relationships. Overall, it’s a well-thought-out piece that invites further discussion and reflection.

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Luna Montana said...

To secure repeat business, companies must prioritize quality in their products and services. When customers are consistently satisfied, they’re more likely to return. For instance, brands like brady noon merch demonstrate this by offering high-quality merchandise that resonates with fans, fostering loyalty and encouraging repeat purchases. Quality truly drives customer retention.

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I agree with your views from the customer's point of view. Maintaining quality and services is important to get repeat business. Thats what branding is. Very interesting article. Liked reading the contents. Thanks for sharing.
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Companies achieve repeat business by building strong relationships with their customers, which often includes delivering consistent quality, offering personalized experiences, and ensuring outstanding customer service. Repeat business also depends on trust; when a company meets or exceeds expectations, customers are more likely to return. Moreover, incentives like loyalty programs, regular engagement, and targeted offers help keep the brand top of mind. Listening to customer feedback and adapting to meet their needs over time is also crucial, as it demonstrates a commitment to continuous improvement and a customer-first mindset.
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Sakshi Gupta said...

The blog "How Companies Get to Do Repeat Business" explores strategies that businesses use to build long-term relationships with customers. It discusses key factors like exceptional customer service, personalized experiences, loyalty programs, and consistent product quality that encourage customers to return. A great read for companies aiming to improve customer retention and increase repeat business.

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Companies achieve repeat business through several key strategies:

1. **Delivering Quality and Consistency:** Offering high-quality products or services consistently builds customer trust and satisfaction, encouraging repeat purchases.

2. **Customer Relationship Management (CRM):** By maintaining strong relationships with customers through personalized communication and loyalty programs, companies ensure that customers return.

3. **Outstanding Customer Service:** Providing exceptional support, addressing issues promptly, and making customers feel valued can lead to long-term loyalty and repeat business.

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The PMR Blog discusses how companies can foster repeat business, focusing on strategies for building customer loyalty, enhancing service quality, and creating long-term relationships for sustainable success.

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In order to repeat a business, it is very important to understand the customer and the market demands.
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