Repeat purchase
Also called: repeat purchase or follow-up purchase
A repeat purchase occurs when the same customer makes a second, third or subsequent purchase from the same store or online store. The fact that a customer returns to the same store does not automatically say it is a loyal customer. It is quite possible that this customer also keeps a close eye on the competition and occasionally makes his purchases at a different store.
In addition to the same store, a repeat purchase may involve the same product or service, often from the same manufacturer. Many retailers and brands are looking to establish a longer relationship with a customer.
When purchasing a printer, for example, it is to be expected that the customer will regularly purchase ink cartridges of the same brand. This principle is called vendor lock-in.
When the terms repeat purchase and repeat demand are used to refer to the re-purchase of the same product and the need for it, they refer to consumables. In the case of durable use items, the terms replacement purchase or additional purchase are used instead.
A store can incentivize customers to keep returning to the same store as much as possible for repeat purchases. For example, by focusing on personal contact, with periodic offers, savings promotions and loyalty systems or other distinctive value for the loyal customer.
